0001493152-22-031566.txt : 20221114 0001493152-22-031566.hdr.sgml : 20221114 20221114065031 ACCESSION NUMBER: 0001493152-22-031566 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 57 CONFORMED PERIOD OF REPORT: 20220630 FILED AS OF DATE: 20221114 DATE AS OF CHANGE: 20221114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LGBTQ Loyalty Holdings, Inc. CENTRAL INDEX KEY: 0001510247 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 800671280 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-54867 FILM NUMBER: 221379973 BUSINESS ADDRESS: STREET 1: 5752 OBERLIN DRIVE STREET 2: #106 CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 858-952-5715 MAIL ADDRESS: STREET 1: 5752 OBERLIN DRIVE STREET 2: #106 CITY: SAN DIEGO STATE: CA ZIP: 92121 FORMER COMPANY: FORMER CONFORMED NAME: LIFEAPPS BRANDS INC. DATE OF NAME CHANGE: 20160107 FORMER COMPANY: FORMER CONFORMED NAME: LIFEAPPS DIGITAL MEDIA INC. DATE OF NAME CHANGE: 20120830 FORMER COMPANY: FORMER CONFORMED NAME: Prime Time Travel, Inc. DATE OF NAME CHANGE: 20110113 10-Q/A 1 form10-qa.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q/A

Amendment No. 1

 

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

 

For the quarterly period ended June 30, 2022

 

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

 

For the transition period from ____________ to ____________

 

Commission file number: 000-54867

 

LGBTQ LOYALTY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   80-0671280

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

2435 Dixie Highway, Wilton Manors, FL 33305

(Address of principal executive offices, including zip code)

 

Tel: (858)-577-1746

(Registrant’s telephone number, including area code)

 

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

 

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

 

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

 

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

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐

 

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

 

Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
    Emerging growth company

 

If an emerging growth company, indicate by check mark if this 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

 

As of November 9, 2022 the Company had 1,179,890,617 shares of common stock, $0.001 par value, issued and outstanding.

 

 

 

 
 

 

EXPLANATORY NOTE

 

This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and six months periods ended June 30, 2022 that we originally filed with the Securities and Exchange Commission, or the Commission, on October 17, 2022 or the Original Filing. The nature of our amendment was due to various accounts that required correction on our consolidated balance sheets and statements of operations.

 

Refer to Note 2 in the notes to the condensed consolidated financial statements for a further explanation of the restated figures.

 

 
 

 

LGBTQ Loyalty Holdings, Inc.

 

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022

TABLE OF CONTENTS

 

    PAGE
     
  PART I - FINANCIAL INFORMATION  
     
Item 1. Financial Statements 1
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 20
     
Item 4. Controls and Procedures 20
     
  PART II - OTHER INFORMATION  
     
Item 1. Legal Proceedings 21
     
Item 1A. Risk Factors 21
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21
     
Item 3. Defaults Upon Senior Securities 21
     
Item 4. Mine Safety Disclosures 21
     
Item 5. Other Information 21
     
Item 6. Exhibits 21
     
  SIGNATURES 22

 

i
 

 

LGBTQ Loyalty Holdings, Inc.

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

  PAGE
   
Review Report of Independent Registered Public Accounting Firm 2
   
Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021 3
   
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited) 4
   
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited) 5
   
Condensed Consolidated Statements of Stockholders’ Deficit for the three and six months ended June 30, 2022 and 2021 (unaudited) 6
   
Notes to Condensed Consolidated Financial Statements (unaudited) 7

 

1
 

  

  

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and
Stockholders of LGBTQ Loyalty Holdings, Inc.

 

Results of Review of Interim Financial Information

 

We have reviewed the condensed consolidated balance sheets of LGBTQ Loyalty Holdings, Inc. (the Company) as of June 30, 2022 and 2021 and the related condensed consolidated statements of operations and stockholders’ deficit for the three-month and six-month periods ended June 30, 2022 and 2021, and the related condensed consolidated statements of cash flows for the six-month period then ended, and the related notes (collectively referred to as the interim financial statements). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

 

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the balance sheet of the Company as of December 31, 2021, and the related statements of operations, stockholders’ deficit, and cash flows for the year then ended (not presented herein); and in our report dated April 15, 2022, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2021, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.

 

Basis for Review Results

 

These interim financial statements are the responsibility of the Company’s management. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

Respectfully yours,

 


Haynie and Company

PCAOB ID 457

We have served as the Company’s auditor since 2018.

Salt Lake City, Utah

November 14, 2022

 

 

2
 

 

LGBTQ LOYALTY HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   June 30,   December 31, 
   2022   2021 
   (Unaudited)     
ASSETS          
Current assets:           
Cash  $12,934   $78,348 
Prepaid expenses and other current assets   8,270    6,925 
Total current assets   21,204    85,273 
Intangible assets, net   40,347    53,243 
Total assets  $61,551   $138,516 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
Current liabilities:          
Accounts payable  $1,408,776   $985,917 
Accrued salaries and consulting fees   723,007    660,331 
Accrued interest and dividends   861,384    640,153 
Notes payable   256,986    126,986 
Notes payable to related party   71,800    1,800 
Convertible notes payable, net of debt discount   2,415,028    2,195,145 
Derivative liability on convertible notes payable   2,781,435    1,398,127 
Series D preferred stock   1,758,224    - 
Total liabilities   10,276,640    6,008,459 
           
Commitments and contingencies   -    - 
           
Stockholders’ equity (deficit):          
Preferred stock, $0.001 par value, 10,000,000 shares authorized          
Series A, 1 share designated, no shares issued or outstanding as of June 30, 2022 and December 31, 2021   -    - 
Series B, 500,000 shares designated, no shares issued and outstanding as of June 30, 2022 and December 31, 2021   -    - 
Series C, 129,559 shares designated, 51,559 shares issued and outstanding as of June 30, 2022 and December 31, 2021   52    52 
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively   1    1 
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 1,132,010,984 and 912,068,287 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively   1,132,010    832,719 
Additional paid-in capital   

12,549,667

    13,215,129 
Accumulated deficit   

(23,896,819

)   (19,917,844)
Total stockholders’ equity (deficit)   

(10,215,089

)   (5,869,943)
Total liabilities and stockholders’ equity (deficit)  $

61,551

   $138,516 

 

See the accompanying notes to the unaudited condensed consolidated financial statements

 

3
 

 

LGBTQ LOYALTY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

   2022   2021   2022   2021 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2022   2021   2022   2021 
Revenue  $-   $-   $-   $- 
Cost of net revenue   -    -    -   $- 
Gross profit   -    -    -    - 
                     
Operating expenses:                    
Personnel costs   46,407    93,121    160,401    1,389,121 
Consulting fees   11,250    38,500    26,500    71,500 
Legal and professional fees   124,992    153,527    281,785    258,650 
Fund expenses   -    -    100,000    - 
Sales and marketing   71,237    40,500    98,939    40,500 
General and administrative   15,028    28,392    51,345    56,514 
Depreciation and amortization   6,448    6,448    12,896    12,896 
Total operating expenses   275,362    360,488    731,866    1,829,181 
                     
Loss from operations   (275,362)   (360,488)   (731,866)   (1,829,181)
                     
Other income (expense):                    
Interest expense   (1,419,622)   (727,642)   (1,525,750)   (1,289,328)
Change in derivative liability   (794,036)   (2,658,949)   (1,153,224)   (2,245,976)
Total other income (expense), net   (2,213,658)   (3,386,591)   (2,678,974)   (3,535,304)
                     
Provision for income taxes   -    -    -    - 
Net loss  $(2,489,020)  $(3,747,079)  $(3,410,840)  $(5,364,485)
                     
Weighted average common shares outstanding - basic and diluted   994,630,987    553,901,386    938,916,526    432,821,915 
Net loss per common share - basic and diluted  $(0.003)  $(0.01)  $(0.004)  $(0.01)

 

See the accompanying notes to the unaudited condensed consolidated financial statements

 

4
 

 

LGBTQ LOYALTY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   2022   2021 
   Six Months Ended 
   June 30, 
   2022   2021 
Cash flows from operating activities:          
Net loss   $(3,410,840)  $(5,364,485)
Adjustments to reconcile net loss to net cash used in operating activities:          
Amortization of debt discount and original issue discount   109,690    704,007 
Change in fair value of derivative liability   1,153,224    2,245,976 
Financing related costs - debt   1,220,986    460,780 
Stock-based compensation expense   -    1,218,114 
Depreciation and amortization   12,896    12,896 
Changes in operating assets and liabilities:          
Prepaid expenses and other current assets   (1,345)   14,058 
Accounts payable   422,984    (105,699)
Accrued salaries and consulting fees   62,550    201,470 
Accrued interest and dividends   194,441    93,663 
Net cash used in operating activities   (235,414)   (519,220)
Cash flows from investing activities:          
Other receivables   -    (205,000)
Net cash used in investing activities   -    (205,000)
Cash flows from financing activities:          
Net proceeds (repayments) from promissory note agreements   170,000    (1,000)
Proceeds from issuance of convertible debenture agreements   -    300,000 
Proceeds from issuance of Series D preferred stock   -    574,100 
Net cash provided by financing activities   170,000    873,100 
Net change in cash   (65,414)   148,880 
Cash at beginning of period   78,348    30,312 
Cash at end of period  $12,934   $179,192 
           
Supplemental disclosure of cash flow information:          
Cash paid for income taxes  $-   $- 
Cash paid for interest  $-   $- 
           
Supplemental disclosure of non-cash financing activities:          
Exercise of common stock warrants  $140,966   $61,775 
Dividends on preferred stock  $44,870   $11,241 
Conversion of Series D preferred stock for common stock   $74,000   $- 
Deemed dividend on conversion of preferred stock   $523,266   $- 
Debenture conversions   $126,562   $- 
Reclassification of Series D preferred stock   $1,015,999   $- 
Derivative liability – inception  $

306,646

   $- 
Conversion of accrued consulting fees into common shares  $-   $338,608 
Conversion of related party notes payable into common shares  $-   $16,085 
Conversion of Series C preferred stock into common stock   $-   $53,000 

 

See the accompanying notes to the unaudited condensed consolidated financial statements

 

5
 

 

LGBTQ LOYALTY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

 

   Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Deficit   Deficit 
   Preferred Stock           Additional       Total 
   Series A   Series B   Series C   Series D   Common Stock   Paid-in   Accumulated   Stockholders’ 
   Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Deficit   Deficit 
                                                     
Balances at December 31, 2020       -   $    -    50,000   $50    129,559   $130    -    -    263,725,234   $263,725   $7,714,704   $(13,239,189)  $(5,260,580)
Common shares issued to board of directors   -    -    -    -    -    -    -    -    140,000,000    140,000    980,000    -    1,120,000 
Common shares issued for services and compensation   -    -    -    -    -    -    -    -    31,834,386    31,834    204,614    -    236,448 
Debenture conversions   -    -    -    -    -    -    -    -    37,538,998    37,539    318,815    -    356,354 
Dividends on preferred stock   -    -    -    -    -    -    -    -    -    -    -    (1,722)   (1,722)
Net loss   -    -    -    -    -    -    -    -    -    -    -    (1,617,405)   (1,617,405)
Balances at March 31, 2021   -    -    50,000    50    129,559    130    -    -    473,098,618    473,098    9,218,133    (14,858,316)   (5,166,906)
Debenture conversions   -    -    -    -    -    -    -    -    100,448,779    100,449    1,821,061    -    1,921,510 
Conversion of notes and payables   -    -    -    -    -    -    -    -    11,956,004    11,956    192,408    -    204,364 
Exercise of warrants   -    -    -    -    -    -    -    -    30,887,276    30,887    (30,887)   -    - 
Conversion of Series C preferred stock into common stock   -    -    -    -    (53,000)   (53)   -    -    53,000,000    53,000    (52,947)   -    - 
Dividends on preferred stock   -    -    -    -    -    -    -    -    -    -    -    (9,519)   (9,519)
Net loss   -    -    -    -    -    -    -    -    -    -    -    (3,747,079)   (3,747,079)
Balances at June 30, 2021   -   $-    50,000   $50    76,559   $77    550   $1    669,390,677   $669,390   $11,147,767   $(18,614,915)  $(6,797,631)
                                                                  
Balances at December 31, 2021   -   $-    -   $-    51,559   $52    1,050   $1    832,719,287   $832,719   $13,215,129   $(19,917,844)  $(5,869,943)
Exercise of warrants   -    -    -    -    -    -    -    -    43,349,000    43,349    (43,349)   -    - 
Conversion of Series D preferred stock for common stock   -    -    -    -    -    -    (45)   -    36,000,000    36,000    (36,000)   -    - 
Deemed dividend on conversion of preferred stock   -    -    -    -    -    -    -    -    -    -    237,924    (237,924)   - 
Dividends on preferred stock   -    -    -    -    -    -    -    -    -    -    -    (22,720)   (22,720)
Net loss   -    -    -    -    -    -    -    -    -    -    -    (921,819)   (921,819)
Balances at March 31, 2022   -    -    -    -    51,559    52    1,005    1    912,068,287    912,068    13,373,704    (21,100,307)   (6,814,482)
Debenture conversions   -    -    -    -    -    -    -    -    84,325,397    84,325    42,237    -    126,562 
Exercise of warrants   -    -    -    -    -    -    -    -    97,617,300    97,617    (97,617)   -    - 
Conversion of Series D preferred stock for common stock   -    -    -    -    -    -    (19)   -    38,000,000    38,000    (38,000)   -    - 
Deemed dividend on conversion of preferred stock   -    -    -    -    -    -    -    -    -    -    285,342    (285,342)   - 
Reclassification of Series D preferred stock   -    -    -    -    -    -    -    -    -    -    (1,015,999)   -    (1,015,999)
Dividends on preferred stock   -    -    -    -    -    -    -    -    -    -    -    (22,150)   (22,150)
Net loss   -    -    -    -    -    -    -    -    -    -    -    (2,489,020)   (2,489,020)
Balances at June 30, 2022   -   $-    -   $-    51,559   $52    986   $1    1,132,010,984   $1,132,010   $12,549,667   $(23,896,819)  $(10,215,089)

 

See the accompanying notes to the unaudited condensed consolidated financial statements

 

6
 

 

LGBTQ LOYALTY HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

June 30, 2022

 

Note 1. Nature of Business

 

Throughout this report, the terms “our,” “we,” “us,” and the “Company” refer to LGBTQ Loyalty Holdings, Inc. (formerly LifeApps Brands Inc.), including its subsidiaries.

 

On January 25, 2019, we acquired LGBT Loyalty LLC, a New York limited liability company, with the goal of creating the first LGBTQ Loyalty Preference Index ETF (the “Index ETF”) to provide the LGBTQ community with the power to influence the allocation of capital within a financial Index ETF based upon LGBTQ consumer preferences. The Index ETF was intended to link the growing economic influence of the LGBTQ community and their allies with many of the top Fortune 500 companies that support and implement diversity, inclusion and equality policies within their organizations. The incorporation of diversity and inclusion in a company’s recruitment and human resource policies has become a key concern to investors as part of their growing focus on ESG allocations. Our data and analytics unequivocally reinforce that corporations that have embraced diversity and inclusion policies within their corporate culture perform at a higher level financially than their peers. This includes advancing a more invigorated workforce that attracts and retains the best talent. Innovation and agility have been identified as great benefits of diversity, and there is an increasing awareness of what has become known as ‘the power of difference’.

 

On October 30, 2019, through our wholly-owned subsidiary Loyalty Preference Index, Inc. (“LPI”) and our strategically aligned partnerships with crowd-sourced data and analytic providers, we launched the LGBTQ100 ESG Index. This Index integrates LGBTQ community survey data into the methodology for a benchmark listing of the nation’s highest financially performing large-cap publicly listed corporations that our respondents believe are most committed to advancing equality. LPI is the index provider for the LGBTQ + ESG100 ETF; LGBTQ Loyalty was the Sponsor for the prospectus that was filed by the licensed Fund Adviser ProcureAM, and was approved by the Securities and Exchange Commission (“SEC”) in early January 2020. The LGBTQ + ESG100 ETF (the “Fund”) sought to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index. In late 2020, LPI was renamed to Advancing Equality Preference, Inc.

 

On March 25, 2022, ProcureAM, LLC (“Adviser”), the adviser to the Fund, after consultation with the Company, the sponsor of the ETF, determined that the Fund should be closed. Based upon a recommendation by the Adviser, the Board of Trustees of Procure ETF Trust I (the “Trust”) approved a Plan of Liquidation for the Fund under which the Fund would be liquidated on or about April 28, 2022 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the officers of the Trust. Beginning when the Fund commences the liquidation of its portfolio, the Fund will not pursue its investment objectives or, with certain exceptions, engage in normal business activities, and the Fund may hold cash and securities that may not be consistent with the Fund’s investment objective and strategy, which may adversely affect Fund performance. On April 28, 2022, the Company effectuated the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation. As of this date, the Fund has ceased operations.

 

7
 

 

Note 2. Correction of Previously Issued Financial Statements

 

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and six months ended June 30, 2022, the Company discovered several errors in its accounts on its condensed consolidated balance sheets and statements of operations.

 

The tables below reflect the effect of restatement on the Company’s financial statements for the three and six month periods ending June 30, 2022:

                
   June 30, 2022 
   Original   Adjustment   As Restated 
Cash  $11,269   $1,665   $12,934 
Total assets  $59,886   $1,665   $61,551 
                
Accounts payable  $1,386,797   $21,979   $1,408,776 
Accrued salaries and consulting fees   743,321    (20,314)   723,007 
Derivative liability on convertible notes payable   2,769,066    12,369    2,781,435 
Total liabilities   10,262,606    14,034    10,276,640 
Common stock   1,132,007    3    1,132,010 
Additional paid-in capital   12,549,666    1    12,549,667 
Accumulated deficit   (23,884,446)   (12,373)   (23,896,819)
Total stockholders’ equity (deficit)   (10,202,720)   (12,369)   (10,215,089)
Total liabilities and stockholders’ equity (deficit)  $59,886   $1,665   $61,551 

 

                
   Six Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
General and administrative  $39,453   $11,892   $51,345 
Total operating expenses   719,974    11,892    731,866 
Interest expense   (1,525,116)   (634)   (1,525,750)
Change in derivative liability   (1,105,465)   (47,759)   (1,153,224)
Net loss  $(3,350,555)  $(60,285)  $(3,410,840)

 

                
   Six Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
Net cash used in operating activities  $(237,079)  $1,665   $(235,414)

 

                
   Three Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
Debenture conversions  $114,040   $12,522   $126,562 

 

Furthermore, in the three months ended March 31, 2022, the deemed dividends related to Preferred Stock conversions were incorrectly recorded (instead of debiting shareholder deficit and crediting additional paid in capital, it did the opposite). They have been corrected in the second quarter. As the effect is a reclass within equity, we consider the change to be qualitatively immaterial.

 

Note 3. Summary of Significant Accounting Policies

 

Going Concern

 

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“US GAAP”), which contemplates our continuation as a going concern. We have incurred losses to date of $23,896,819 and have negative working capital of $10,255,436 as of June 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third-party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Basis of Presentation

 

We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2022. Certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.

 

Prior Period Adjustments

 

In the first quarter of 2022, we determined that the Series D preferred stock included a substantive conversion option, and therefore should be equity classified. Previously, the amount was included as a current liability. We have reclassified the amount to Series D preferred stock equity and additional paid-in capital on the consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2021. We do not believe the change to be qualitatively material to the consolidated financial statements as of December 31, 2021.

 

Principles of Consolidation

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, LGBTQ Loyalty, LLC, and Advancing Equality Preference, Inc. All material inter-company transactions and balances have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

 

8
 

 

Fair Value Measurements

 

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

 

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

 

Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

 

Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights and derivative liabilities.

 

Our financial instruments consist of cash, other current assets, accounts payables, accruals, and notes payable. The carrying values of these instruments approximate fair value because of the short-term maturities. The fair value of the Company’s convertible debentures and promissory notes approximates their carrying values as the underlying imputed interest rates approximates the estimated current market rate for similar instruments. The derivative is measured as a Level 3 instrument due to the various inputs which requires significant management judgment. Refer to Note 6 for detail.

 

The following table is a summary of our financial instruments measured at fair value:

 

   Fair Value Measurements 
   as of June 30, 2022: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable and preferred stock  $-   $-   $2,781,435   $2,781,435 
   $-   $-   $2,781,435   $2,781,435 

 

   Fair Value Measurements 
   as of December 31, 2021: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable  $-   $-   $1,398,127   $1,398,127 
                     
   $-   $-   $1,398,127   $1,398,127 

 

Refer to Note 7 for detail on the unobservable inputs used in the fair value of the derivative liability.

 

9
 

 

Earnings per Share

 

We calculate earnings per share in accordance with ASC Topic 260 Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants. The diluted earnings per share were not calculated because we recorded net losses for the three and six months ended June 30, 2022 and 2021, and the outstanding stock options and warrants are anti-dilutive. For the three and six months ended June 30, 2022 and 2021, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:

 

 

   2022   2021 
   Six Months Ended 
   June 30, 
   2022   2021 
Stock options outstanding   -    1,800,000 
Warrants   28,333,333    204,946,057 
Shares to be issued upon conversion of notes   6,170,908,567    203,651,096 
Series D preferred stock   2,010,000,000    67,826 
Anti-dilutive securities   8,209,241,900    410,464,979 

  

Recent Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

 

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

 

Note 4. Intangible Assets

 

The Company capitalizes costs pertaining to the development of the LGBTQ100 ESG Index website. The Company began amortizing these costs upon the launch of the index, and will amortize the costs over a three-year useful life.

 

At June 30, 2022 and December 31, 2021, net intangible assets were $40,347 and $53,243, respectively. Amortization expense was $12,896 for both the six months ended June 30, 2022 and 2021, respectively.

 

10
 

 

Note 5. Notes Payable

 

As of June 30, 2022 and December 31, 2021, the Company has a note payable outstanding in the amount of $1,986. The note is past due at June 30, 2022 and is, therefore, in default. The note accrues interest at a rate of 2% per annum.

 

In December 2019, the Company issued a promissory note to Pride Partners LLC (“Pride”) for $75,000. The note is secured, accrues interest at a rate of 10% per annum, and matured on June 20, 2020. As of June 30, 2022, the full principal amount was outstanding and in default.

 

In 2019, the Company issued a promissory note for $50,000. The note includes $2,500 in original issue discount. The noted is unsecured and matured in December 2019. As of June 30, 2022, the full principal amount was outstanding an in default.

 

In April 2022, Advancing Equality Preference entered into a loan payable for $130,000 for proceeds of $100,000. The loan matured on June 30, 2022 and is currently in default.

 

Note 6. Convertible Notes Payable

 

During the six months ended June 30, 2022 and 2021, the Company recorded amortization of debt discount and original issue discount of $109,690 and $582,631, respectively, for all convertible debentures. This amount is included in interest expense in our consolidated statements of operations.

 

The Company did not file its Form 10-Q for the quarter ended March 31, 2022 on a timely basis. As a result, several default provisions were triggered with the Company’s outstanding debentures. The Company recorded an additional $374,125 in additional principal owed upon this default provision. Accordingly, the Company recorded $374,125 in interest expense in the consolidated statements of operations.

 

The following is a summary of the activity of the convertible notes payable and convertible debenture for the six months ended June 30, 2022:

 

   Convertible 
   Debenture 
Balance as of December 31, 2021  $2,195,145 
Convertible debenture - debt discount   (213,932)
Additional principal per default provisions   374,125 
Amortization of debt discount and original issue discount   109,690 
Conversion to common stock, net of discount   (50,000)
Balance as of June 30, 2022  $2,415,028 

 

The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:

 

   June 30,   December 31, 
   2022   2021 
Principal amount outstanding  $2,545,152   $2,221,027 
Less: Unamortized original debt discount   (123,421)   - 
Less: Unamortized original issue discount   (6,703)   (25,882)
Total  $2,415,028   $2,195,145 

 

11
 

 

As of June 30, 2022 and December 31, 2021, the EMA Note was in default and the parity value of the EMA Note was determined to be $434,687. In 2021, the Company issued 60,714,000 shares of common stock pursuant to conversions of outstanding principal.

 

Note 7. Derivative Liability

 

We evaluated the terms of the conversion features of the debentures and related debenture warrants as noted above and below, in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock, and determined they are indexed to the Company’s common stock and that the conversion features meet the definition of a liability. Therefore, we bifurcated the conversion feature and accounted for it as a separate derivative liability.

 

To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded.

 

We value the conversion feature at origination of the notes using the Black-Scholes valuation model with the below assumptions. We value the derivative liability at the end of each accounting period, and upon conversion of the underlying note or warrant, with the difference in value recognized as gain or loss included in other income (expense) in our consolidated statements of operations.

 

   Six Months Ended 
   June 30, 
   2022   2021 
Risk-free interest rate    2.01%   0.09%
Expected term (in years)    0.48    1.00 
Expected volatility    154.5%   237.4%
Expected dividend yield    0%   0%
Exercise price of underlying common shares  $0.001   $0.004 

 

During the six months ended June 30, 2022, the entire value of the principal of the debentures was assigned to the derivative liability and recognized as a debt discount. The debt discount is recorded as reduction (contra-liability) to the debentures and is being amortized over the initial term. Any excess balance was recognized as origination interest on the derivative liability and expensed on origination. In accordance with the Company’s sequencing policy, shares issuable pursuant to the convertible debentures would be settled subsequent to the Company’s Series B preferred stock.

 

The following is a summary of the activity of the derivative liability for the six months ended June 30, 2022:

 

     
   Debenture 
Balance as of December 31, 2021  $1,398,127 
Initial fair value per derivative recognition   306,646 
Conversion of debenture to common stock   (76,562)
Change in fair value of derivative liability   1,153,224 
Balance as of June 30, 2022  $2,781,435 

 

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Note 8. Preferred Stock

 

Series D Convertible Preferred Stock

 

On April 8, 2021, the Company issued 400 shares of Series D Convertible Preferred Stock (the Series D Preferred Stock”) to GHS Investments, LLC (“GHS”) pursuant to a Securities Purchase Agreement (“GHS April Agreement”) for net proceeds of $427,600. In conjunction with the GHS Agreement, the Company issued warrants to purchase 40,000,000 shares of common stock at an exercise price of $0.001.

 

On May 12, 2021, the Company issued 150 shares of Series D Preferred Stock to GHS Investments, LLC pursuant to a Securities Purchase Agreement (“GHS May Agreement”) for net proceeds of $146,500. In conjunction with the GHS Agreement, the Company issued warrants to purchase 1,500,000 shares of common stock at an exercise price of $0.001.

 

Notwithstanding, on June 23, 2021, GHS and the Company entered into a Rescission Agreement (the “Rescission Agreement”) pursuant to which the Company and GHS agreed to rescind, ab initio, the issuances of Warrants to GHS. Pursuant to the Rescission Agreement, GHS and the Company agreed that the issuance of the Warrants are unconditionally and irrevocably rescinded ab initio by GHS and the Company, and the Warrants are neither valid nor effective in any manner whatsoever. Further, GHS and the Company acknowledged that each has been restored to the position in which such party found itself on the date that the respective GHS Agreement was executed but without any references, rights or obligations relative to the Warrants contained in, or otherwise granted in, either the GHS Agreements or the Warrants. As a result, GHS has no rights whatsoever to the Warrants and the Company has no rights whatsoever to the any exercise price that it may have received pursuant to the Warrants. In connection with the execution and delivery of the Rescission Agreement, the Company and GHS entered into two (2) Amended and Restated Purchase Agreements which each seek to amend and restate the terms and conditions contained in the April Agreement and the May Agreement.

 

On July 14, 2021, the Company issued 250 shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS July Agreement”) for net proceeds of $237,500. On August 20, 2021, the Company issued 250 shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS August Agreement”) for net proceeds of $250,000.

 

On the one-year anniversary of the date of issuance of the Preferred Stock, the Company must redeem the Preferred Stock then outstanding at a price equal to the outstanding Stated Value together with any accrued but unpaid dividends.

 

In January 2022, GHS converted 45 shares of Series D preferred stock with a stated value of $54,000 for 36,000,000 shares of common stock at a conversion price of $0.0015 per share. As a result of the conversion, the Company recorded a deemed dividend of $237,924, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($0.0015) and original fixed conversion price of $0.008109.

 

In June 2022, GHS converted 19 shares of Series D preferred stock with a stated value of $22,800 for 38,000,000 shares of common stock at a conversion price of $0.0006 per share. As a result of the conversion, the Company recorded a deemed dividend of $285,342, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($0.0006) and original fixed conversion price of $0.008109.

 

As of June 30, 2022, there were 986 shares of Series D preferred stock outstanding, and $97,814 in accrued Series D dividends. As of December 31, 2021, there were 1,050 shares of Series D preferred stock outstanding, and $52,944 in accrued Series D dividends.

 

Due to the Company’s late filing on its Form 10-Q for the quarter ended March 31, 2022 (see Note 7), default provisions were triggered with the GHS agreement. As a result, it was determined all preferred stock were due for redemption immediately. The Company determined that $1,758,224, inclusive of the stated value of the Series D preferred stock, and inclusive of accrued dividends, default penalties and interest, was due. As such, the Company reclassified $1,015,999 of Series D preferred stock from additional paid-in capital to a current liability. The remaining amount of $644,411 was included in interest expense in the consolidated statements of operations.

 

Note 9. Stockholders’ Equity (Deficit)

 

Common Stock

 

In January 2022, GHS converted 45 shares of Series D preferred stock with a stated value of $54,000 for 36,000,000 shares of common stock at a conversion price of $0.0015 per share.

 

In June 2022, GHS converted 19 shares of Series D preferred stock with a stated value of $57,000 for 38,000,000 shares of common stock at a conversion price of $0.0006 per share.

 

In the six months ended June 30, 2022, Auctus exercised warrants for 140,966,300 shares of common stock.

 

In March 2021, an aggregate of 140,000,000 shares of common stock were issued to the board members for accrued dividends as well as current compensation the year ended December 31, 2021. Of these shares issuances, $961,666 is included in personnel costs in the consolidated statements of operations.

 

In March 2021, an aggregate of 31,834,386 shares of common stock were issued to employees and consultants for accrued and current consulting services for a total fair value of $236,448.

 

In June 2021, an aggregate of 11,956,004 shares of common stock were issued pursuant to conversion of balances owed to a related party and accrued consulting services totaling $204,364.

 

In June 2021, Auctus exercised 32,142,857 warrants into shares of common stock.

 

During the six months ended June 30, 2021, Pride converted 53,000 shares of Series C preferred stock for 53,000,000 shares of common stock.

 

During the six months ended June 30, 2022 and 2021, the Company issued 84,325,397 and 137,987,777 shares of common stock pursuant to conversion of debentures in the principal amount of $50,000 and $495,247, all respectively.

 

Note 10. Options and Warrants

 

Options

 

As of June 30, 2022 and December 31, 2021, we had 0 options remaining outstanding pursuant to the 2012 Equity Incentive Plan.

 

Warrants

 

As of June 30, 2022 and December 31, 2021, we had 28,333,333 and 174,058,782 warrants outstanding, respectively, with a weighted average exercise price of $0.01 and $0.02 per share. In the six months ended June 30, 2022, Auctus exercised warrants for 140,966,300 shares of common stock.

 

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Note 11. Related Party Transactions

 

Parties, which can be a corporation or an individual, are considered to be related if we have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Notes Payable to Related Party

 

Notes payable to related parties at June 30, 2022 and December 31, 2021 included a note of $1,800 with a 2% annual interest rate. Currently the Company has defaulted on this obligation. Forbearance has been granted by the related party.

 

In February 2022, the Company issued a promissory note to a related party for $70,000. The note is unsecured and matured in April 2022. The note does not bear interest. The note includes a promise to issue shares of the Company’s preferred stock, which was undetermined as of June 30, 2022. As of June 30, 2022, the note was in default.

 

Accrued Salaries and Compensation

 

As of June 30, 2022 and December 31, 2021, accrued salaries to our company officers and executive director totaled $522,804 and $472,804, respectively, and is included in accrued salaries and consulting fees in our consolidated balance sheets.

 

In March 2021, we issued 200,000,000 shares of common stock to the Chief Operating Officer for a total fair value of $160,000.

 

Board of Directors

 

In March 2021, we issued 20,000,000 shares of common stock to each of the seven board members, including the Chief Executive Officer, for an aggregate of 140,000,000 shares. Of these share issuances, $961,666 is included in personnel costs in the consolidated statements of operations and the remaining $138,334 was converted from accrued salaries and consulting fees.

 

A former board member is the co-founder and president of ProcureAM, LLC, the fund advisor for the Fund. During 2021, we initially received $100,000 from ProcureAM and provided an additional $305,000 to the custodian. As of December 31, 2021, we have recorded $305,000 in fund expenses and do not expect to receive any amounts back from ProcureAM. In the six months ended June 30, 2022, we recorded an additional $100,000 in fund expenses which we do not expect to receive any amounts back from ProcureAM. As such, other receivable was $0 on the consolidated balance sheets.

 

On April 15, 2022, Deborah Fuhr submitted her resignation as a member of the Board, effective immediately. Ms. Fuhr submitted her resignation to pursue other interests. The Company’s Board accepted Ms. Fuhr’s resignation and expressed its appreciation for the services she provided to the Company.

 

Accounts Payable

 

As of June 30, 2022 and December 31, 2021, the Company had $168,308 and $102,808, respectively, included in accounts payable to related parties including officers and board members.

 

Note 12. Subsequent Events

 

Management has evaluated all activity up to November 11, 2022 and concluded that no subsequent events have occurred that would require recognition in these financial statements or disclosure in the notes to these financial statements other than the following:

 

On August 25, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Director of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respective shares of Common Stock back to the Company.

 

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

 

The following discussion should be read in conjunction with the financial information included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”), including our unaudited condensed consolidated financial statements as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021 and the related notes. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations section to “us,” “we,” “our,” and similar terms refer to LGBTQ Loyalty Holdings, Inc., a Delaware corporation. This discussion includes forward-looking statements, as that term is defined in the federal securities laws, based upon current expectations that involve risks and uncertainties, such as plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Words such as “anticipate,” “estimate,” “plan,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions are used to identify forward-looking statements.

 

We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors that may affect our results include, but are not limited to, the risk factors in Item 2.01 in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2022. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Moreover, we operate in a very competitive changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and certainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

 

Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.

 

Business Overview

 

On January 25, 2019, we acquired LGBT Loyalty LLC, a New York limited liability company, with the goal of creating the first LGBTQ Loyalty Preference Index ETF (the “Index ETF”) to provide the LGBTQ community with the power to influence the allocation of capital within a financial Index ETF based upon LGBTQ consumer preferences. The Index ETF was intended to link the growing economic influence of the LGBTQ community and their allies with many of the top Fortune 500 companies that support and implement diversity, inclusion and equality policies within their organizations. The incorporation of diversity and inclusion in a company’s recruitment and human resource policies has become a key concern to investors as part of their growing focus on ESG allocations. Our data and analytics unequivocally reinforce that corporations that have embraced diversity and inclusion policies within their corporate culture perform at a higher level financially than their peers. This includes advancing a more invigorated workforce that attracts and retains the best talent. Innovation and agility have been identified as great benefits of diversity, and there is an increasing awareness of what has become known as ‘the power of difference’.

 

On October 30, 2019, through our wholly-owned subsidiary Loyalty Preference Index, Inc. (“LPI”) and our strategically aligned partnerships with crowd-sourced data and analytic providers, we launched the LGBTQ100 ESG Index. This Index integrates LGBTQ community survey data into the methodology for a benchmark listing of the nation’s highest financially performing large-cap publicly listed corporations that our respondents believe are most committed to advancing equality. LPI is the index provider for the LGBTQ + ESG100 ETF; LGBTQ Loyalty was the Sponsor for the prospectus that was filed by the licensed Fund Adviser ProcureAM, and was approved by the Securities and Exchange Commission (“SEC”) in early January 2020. The LGBTQ + ESG100 ETF (the “Fund”) sought to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index. In late 2020, LPI was renamed to Advancing Equality Preference, Inc.

 

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Fund Closure

 

On March 25, 2022, ProcureAM, LLC (“Adviser”), the adviser to the Fund, after consultation with the Company, the sponsor of the ETF, determined that the Fund should be closed. Based upon a recommendation by the Adviser, the Board of Trustees of Procure ETF Trust I (the “Trust”) has approved a Plan of Liquidation for the Fund under which the Fund will be liquidated on or about April 28, 2022 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the officers of the Trust. Beginning when the Fund commences the liquidation of its portfolio, the Fund will not pursue its investment objectives or, with certain exceptions, engage in normal business activities, and the Fund may hold cash and securities that may not be consistent with the Fund’s investment objective and strategy, which may adversely affect Fund performance.

 

LGBTQ Loyalty has generated an abundance of media coverage for our premier LGBTQ Index product with the launch and listing on NYSE of the LGBTQ100 ESG Index. The exclusive media launch with Bloomberg Media was instrumental in propelling the LGBTQ100 brand to center stage overnight in the financial sector. In addition, LGBTQ Loyalty was featured at the Inside ETFs Summit in early 2020 with Board Members, Barney Frank and Billy Bean speaking on the “The Power of Inclusion & Equality” for investors. Our media strategy objective is to lay the groundwork for additional high-profile positioning of the brand as we work to achieve the desired increased financial media coverage and growth in AUM valuation for our company and shareholders.

 

Our Products

 

Our mission is to build a sustainable and well recognized brand focused on unlocking the growing purchasing power of the LGTBQ community globally by offering a robust LGBTQ Index and core ETF portfolio that attracts key institutional investors and corporations.

 

At the nucleus of our LGBTQ Loyalty Preference Index is our partner-driven Crowd Preference Index Methodology (CPIM) which we believe disrupts ESG investing. This is achieved through an elevated screening process of financial performance data and ESG standards and practices, whereby LGBTQ community data on diversity and inclusion compliance directly impacts corporate financial results and transparently identifies and recognizes high performance companies who have consistently outperformed the S&P 500 index or equivalent sector standards and norms.

 

We intend to extend the LGBTQ Loyalty Index brand with future plans to develop indices with a focus on the ‘Social’ component of ESG utilizing our proprietary financial slogan of “Advancing Equality” within other gender, minority interest groups.

 

Revenue

 

The Company focus over the past few years was to create and launch our first of many financial Index products through an equality driven thematic ESG screened and alpha performance benchmark. The Company achieved this through its LGBTQ100 ESG Index listing and performance on the NYSE starting on October 30, 2019. In 2022 our collective efforts and focus is to monetize and scale our model by capturing recurring revenue streams through our current financial Index product. Our goal is to accelerate our revenue pursuits through our partnership and licensed relationships to achieve a break-even point when we have secured AUM benchmarked against the LGBTQ100 Index in excess of $50,000,000.

 

We intend to introduce a new key partnered revenue source derived from Direct Index Licensing Fees generated by financial institutions and asset management companies for creating a product (e.g., Index Funds, Structured Financial Products, Turnkey Asset Management Providers) based on or linked to the LGBTQ100 index. This includes fees to use the LGBTQ100 index to track the performance of funds or as benchmarks for actively managed portfolios. We plan to capture Data Subscriptions which could provide recurring subscription revenue from our LGBTQ Index. This includes ongoing and historical data and information generated by our wholly owned division Advancing Equality Preference Inc., and through our strategic partnerships for new potential financial equality-driven Indices.

 

New initiatives in 2022 include a plan to create ancillary revenue streams to complement and support this unique platform for the top 100 Equality driven Corporations in America represented in the LGBTQ100 Index. We believe our index will reward and elevate the status of those corporations that have adopted diversity and inclusion best practices, cared for their employees and positively impacted LGBTQ communities. Expert LGBTQ economists have repeatedly stressed the value of the LGBTQ brand loyalty to corporations. We consider the companies that best capture the spending trends and loyalty of the LGBTQ consumer will be better positioned for financial growth and success. Given the opportunity to link to the power and status generated between the LGBTQ community, these companies and their own workforce, we will launch a Partner Loyalty Program which includes benefits afforded to defined sponsorship tiers.

 

16
 

 

We have achieved no revenues to date from our LGBTQ related operations and have been focused on building our product and achieving performance results and media branding over the course of the past twelve months. There are no assurances that can be given that we will achieve revenues or profitability in the future.

 

Business Strategy

 

Our business strategy is targeted to the estimated three trillion-dollar global purchasing power of the LGBTQ consumer demographic. More than nineteen million people identify themselves as LGBTQ in the US and four-hundred-fifty million globally while the LGBTQ community is composed of some of the most loyalty-driven consumers in the world.

 

We believe that the LGBTQ demographic is one of the most highly sought-after economic groups in the world from corporate America down to the local business owner because of their higher median income and brand loyalty. What makes targeting and supporting this dynamic demographic even more extraordinary and rewarding is that friends, family, employers, employees, teachers, coaches and fans of our community so loyally support the brands, products and services that in turn support us. We further believe that this loyalty across the board is time tested, proven, growing and expanding and ultimately extremely rewarding to all that are embraced by the LGBTQ community. Connecting the world’s most supportive LGBTQ companies to the dynamic, loyal and ever-increasing spending power of the LGBTQ community is a consequential step forward for the LGBTQ movement and investment community.

 

Many Fortune 500 companies are directing more of their consumer advertising and promotional spend towards celebrating diversity and equality. Our long-term goal is to reinforce the financial performance of those Corporations as they foster and integrate LGBTQ equality practices through their Diversity and Inclusion policies as a cornerstone of their corporate culture. Our LGBTQ100 Index of the top 100 corporate constituents have already embraced and enacted this standard of Equality excellence. See our top LGBTQ100 Index constituents on our website.

 

Critical Accounting Policies and Estimates

 

Going Concern

 

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with GAAP, which contemplates our continuation as a going concern. We have incurred losses to date of $23,896,819 and have negative working capital of $10,255,436 as of June 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

17
 

 

Use of Estimates

 

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

 

Derivative Financial Instruments:

 

The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with a fixed conversion price or floor would be settled first, and interest payable in shares settle next. Thereafter, share settlement order is based on instrument issuance date – earlier dated instruments settling before later dated. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. The policy includes all shares issuable pursuant to debenture and preferred stock instruments as well as shares issuable under service and employment contracts and interest on short term loans.

 

Results of Operations

 

Three months ended June 30, 2022 compared with the three months ended June 30, 2021

 

There were no revenues during the three months ended June 30, 2022 or 2021.

 

The following is a breakdown of our operating expenses for the three months ended June 30, 2022 and 2021:

 

   Three Months Ended          
   June 30,          
   2022   2021    Change $   Change % 
Personnel costs  $46,407   $93,121    $(46,714)   -50%
Consulting fees   11,250    38,500     (27,250)   -71%
Legal and professional fees   124,992    153,527     (28,535)   -19%
Fund expenses   -    -     -    100%
Sales and marketing   71,237    40,500     30,737    76%
General and administrative   15,028    28,392     

(13,364

)   -47%
Depreciation and amortization   6,448    6,448     -    0%
   $275,362   $360,488    $(85,126)   -24%

 

Personnel costs include officer salaries and directors’ compensation. The decrease in personnel costs is primarily due 2021 board compensation.

 

Consulting fees decreased by $27,250 during the three months ended June 30, 2022, primarily due to limited operations in developing the Index. Consulting fees represent our efforts to launch the LGBTQ100 ESG Index and LGBTQ + ESG100 ETF.

 

Legal and professional fees decreased by $28,535 primarily due to less financing matters in 2022.

 

Sales and marketing costs increased by $30,737 in the three months ended June 30, 2022 based on some new branding efforts in 2022.

 

General and administrative expenses decreased by $13,364 in 2022 due to less operations overall.

 

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Depreciation and amortization expense was $6,448 in the three months ended June 30, 2022 and 2021, which represents amortization on our index development costs.

 

The following is a breakdown of our other income (expenses) for the three months ended June 30, 2022 and 2021:

 

   Three Months Ended        
   June 30,        
   2022   2021   Change $   Change % 
Interest expense  $(1,419,622)  $(727,642)   (691,980)   95%
Change in derivative liability   (794,036)   (2,658,949)   1,864,913    -70%
   $(2,213,658)  $(3,386,591)  $1,172,933    -35%

 

Interest expense is primarily attributable to origination interest and amortization of debt discount. Interest expense includes the default penalties to record additional amounts owed on the convertible debentures and Series D preferred stock.

 

Change in derivative liability includes the mark-to-market adjustment of the derivative liability in connection with our convertible debenture.

 

Net loss was $2,489,020 and $3,747,079 for the three months ended June 30, 2022 and 2021, respectively.

 

Six months ended June 30, 2022 compared with the six months ended June 30, 2021

 

There were no revenues during the six months ended June 30, 2022 or 2021.

 

The following is a breakdown of our operating expenses for the six months ended June 30, 2022 and 2021:

 

   Six Months Ended         
   June 30,         
   2022   2021   Change $   Change % 
Personnel costs  $160,401   $1,389,121   $(1,228,720)   -88%
Consulting fees   26,500    71,500    (45,000)   -63%
Legal and professional fees   281,785    258,650    23,135    9%
Fund expenses   100,000    -    100,000    100%
Sales and marketing   98,939    40,500    58,439    144%
General and administrative   51,345    56,514    (5,169)   -9%
Depreciation and amortization   12,896    12,896    -    0%
   $719,974   $1,829,181   $(1,097,315)   -60%

 

Personnel costs include officer salaries and directors’ compensation. The decrease in personnel costs is primarily due 2021 board compensation.

 

Consulting fees decreased by $45,000 during the six months ended June 30, 2022, primarily due to limited operations in developing the Index. Consulting fees represent our efforts to launch the LGBTQ100 ESG Index and LGBTQ + ESG100 ETF.

 

Legal and professional fees increased by $23,135 due to less financings in 2022.

 

Fund expenses represented the $100,000 incurred to Procure.

 

Sales and marketing costs increased by $58,439 in the six months ended June 30, 2022 based on some new branding efforts in 2022.

 

General and administrative expenses decreased by $5,169 in 2022 due to less operations overall.

 

Depreciation and amortization expense was $12,896 in the six months ended June 30, 2022 and 2021, which represents amortization on our index development costs.

 

The following is a breakdown of our other income (expenses) for the six months ended June 30, 2022 and 2021:

 

   Six Months Ended         
   June 30,         
   2022   2021   Change $   Change % 
Interest expense  $(1,525,750)  $(1,289,328)   (236,422)   18%
Change in derivative liability   (1,153,224)   (2,245,976)   1,092,752    -49%
   $(2,678,974)  $(3,535,304)  $856,330    -24%

 

Interest expense is primarily attributable to origination interest and amortization of debt discount. Interest expense includes the default penalties to record additional amounts owed on the convertible debentures and Series D preferred stock.

 

Change in derivative liability includes the mark-to-market adjustment of the derivative liability in connection with our convertible debenture.

 

Net loss was $3,410,840 and $5,364,485 for the six months ended June 30, 2022 and 2021, respectively.

 

 

Liquidity and Capital Resources

 

Historically, we have been financed through advances from related parties, issuances of convertible debt, and the sale of our common and preferred stock. Our existing sources of liquidity will not be sufficient for us to implement our business plans. There are no assurances that we will be able to raise additional capital as and when needed. As of June 30, 2022, we had $12,934 of cash on hand. Based on our current planned expenditures, we will require approximately $2.5 million over the next 12 months. Our existing sources of liquidity may not be sufficient for us to implement our continuing business plan. Our need for future capital will be dependent upon the speed at which we expand our product offerings. There are no assurances that we will be able raise additional capital as and when needed.

 

As of June 30, 2022, we had a working capital deficit of $10,255,436 as compared to a working capital deficit of $7,001,879 at December 31, 2021.

 

During the six months ended June 30, 2022 and 2021, operations used cash of $235,414 and $519,220, respectively, primarily related to our net loss partially offset by non-cash charges and cash provided by changes in operating assets and liabilities.

 

In 2022, we received $70,000 in proceeds from a related party note. Advanced Equity also entered into a loan for $100,000.

 

In 2021, we received $300,000 in proceeds from the issuance of convertible debentures and repaid notes payable of $1,000. We also received $574,100 from the issuance of Series D preferred stock.

 

We will continue to seek out additional capital in the form of debt or equity under the most favorable terms we can find.

 

The Company is currently, and has for some time, been in financial distress. It has no cash resources or current assets, and has no ongoing source of revenue. Management is continuing to address numerous aspects of the Company’s operations and obligations, including, without limitation, debt obligations, financing requirements, and regulatory compliance, and has taken steps to continue to raise new debt and equity capital to fund the Company’s business activities.

 

The Company is continuing its efforts to raise additional capital in order to be able to pay its liabilities and fund its business activities on a going forward basis and regularly evaluates various measures to satisfy the Company’s liquidity needs. Though the Company actively pursues opportunities to finance its operations through external sources of debt and equity financing, there can be no assurance that such financing will be available on terms acceptable to the Company, or at all.

 

19
 

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide the information required under this item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Pursuant to Rule 13a-15(b) under the Exchange Act, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal financial and accounting officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures are not effective due to a lack of audit committee and segregation of duties caused by limited personnel to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

 

Limitations on Effectiveness of Controls and Procedures

 

Our management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), does not expect that our disclosure controls and procedures will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

Management believes that the material weakness set forth above did not have an effect on our financial results.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in the Company’s internal control over financial reporting during the three and six months ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

20
 

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

There are no pending, nor to our knowledge threatened, legal proceedings against us.

 

ITEM 1A. RISK FACTORS

 

As of the date of this filing, there have been no material changes to the Risk Factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on April 15, 2022, which may be accessed via EDGAR through the Internet at www.sec.gov (the “2021 Form 10-K”). The Risk Factors set forth in the 2021 Form 10-K should be read carefully in connection with evaluating the Company’s business and in connection with the forward-looking statements contained in this Quarterly Report on Form 10-Q. Any of the risks described in the 2021 Form 10-K could materially adversely affect the Company’s business, financial condition or future results and the actual outcome of matters as to which forward-looking statements are made. These are not the only risks that the Company faces. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and/or operating results.

 

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

 

Recent Sales of Unregistered Securities

 

Refer to the footnotes of the accompanying consolidated financial statements for convertible debentures entered into and issuances of common and preferred stock.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

We are in default under a $20,000 Promissory Note dated May 20, 2017 that became due on August 31, 2017. We have entered into a payment plan with the payee thereunder wherein we are making monthly cash payments to reduce the outstanding balance due. At June 30, 2022 the outstanding balance was approximately $1,986.

 

All other of the Company’s outstanding convertible debentures and notes payables are currently in default.

 

ITEM 4. MINE SAFETY DISCLOSURE

 

Not Applicable.

 

ITEM 5. OTHER INFORMATION

 

On April 15, 2022, Deborah Fuhr submitted her resignation as a member of the Board, effective immediately. Ms. Fuhr submitted her resignation to pursue other interests. The Company’s Board accepted Ms. Fuhr’s resignation and expressed its appreciation for the services she provided to the Company.

 

On August 25, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Director of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respective shares of Common Stock back to the Company.

 

ITEM 6. EXHIBITS

 

Exhibit

Number

  Description of Exhibit
31.1*   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*   Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*   Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*   Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**   Inline XBRL Instance Document
101.SCH**   Inline XBRL Taxonomy Extension Schema Document
101.CAL**   Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**   Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE**   Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF**   Inline XBRL Taxonomy Extension Definition Linkbase Document
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

* Filed herewith
** This certification is being furnished and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

 

21
 

 

SIGNATURES

 

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  LGBTQ LOYALTY HOLDINGS, INC.
     
November 14, 2022 By: /s/ Robert A. Blair
    Robert A. Blair, Chief Executive Officer

 

November 14, 2022 By: /s/ Eric Sherb
    Eric Sherb, Chief Financial Officer

 

22

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

Certification of Principal Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Robert A. Blair, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q/A of LGBTQ Loyalty Holdings, Inc.;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. The registrant’s other certifying officer 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2022 By: /s/ Robert A. Blair
    Robert A. Blair
    Chief Executive Officer
    (Principal Executive Officer)

 

 

 

EX-31.2 3 ex31-2.htm

 

EXHIBIT 31.2

 

Certification of Principal Financial Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Eric Sherb, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q/A of LGBTQ Loyalty Holdings, Inc.;
   
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
   
4. The registrant’s other certifying officer 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 and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2022 By: /s/ Eric Sherb
    Eric Sherb
    Chief Financial Officer
    (Principal Financial Officer)

 

 

 

EX-32.1 4 ex32-1.htm

 

EXHIBIT 32.1

 

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

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of LGBTQ Loyalty Holdings, Inc. (the “Company”) on Form 10-Q/A, for the fiscal quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert A. Blair, Chief Executive Officer of LGBTQ Loyalty Holdings, Inc., certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

  (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
     
  (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 the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

Date: November 14, 2022 By: /s/ Robert A. Blair
    Robert A. Blair
    Chief Executive Officer
    (Principal Executive Officer)

 

 

 

EX-32.2 5 ex32-2.htm

 

EXHIBIT 32.2

 

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

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of LGBTQ Loyalty Holdings, Inc. (the “Company”) on Form 10-Q/A, for the fiscal quarter ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric Sherb, Chief Financial Officer of LGBTQ Loyalty Holdings, Inc., certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

  (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
     
  (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 the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

Date: November 14, 2022 By: /s/ Eric Sherb
    Eric Sherb
    Chief Financial Officer
    (Principal Financial Officer)

 

 

 

 

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Number Entity Tax Identification Number Entity Incorporation, State or Country Code Entity Address, Address Line One Entity Address, Address Line Two Entity Address, Address Line Three Entity Address, City or Town Entity Address, State or Province Entity Address, Country Entity Address, Postal Zip Code Country Region City Area Code Local Phone Number Extension Written Communications Soliciting Material Pre-commencement Tender Offer Pre-commencement Issuer Tender Offer Title of 12(b) Security No Trading Symbol Flag Trading Symbol Security Exchange Name Title of 12(g) Security Security Reporting Obligation Annual Information Form Audited Annual Financial Statements Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Interactive Data Current Entity Filer Category Entity Small Business Entity Emerging Growth Company Elected Not To Use the Extended Transition Period Document Accounting Standard Other Reporting Standard Item Number Entity Shell Company Entity Public Float Entity Bankruptcy Proceedings, Reporting Current Entity Common Stock, Shares Outstanding Documents Incorporated by Reference [Text Block] Statement [Table] Statement [Line Items] ASSETS Current assets: Cash Prepaid expenses and other current assets Total current assets Intangible assets, net Total assets LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable Accrued salaries and consulting fees Accrued interest and dividends Notes payable Notes payable to related party Convertible notes payable, net of debt discount Derivative liability on convertible notes payable Series D preferred stock Total liabilities Commitments and contingencies Stockholders’ equity (deficit): Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively Common stock, $0.001 par value, 2,000,000,000 shares authorized, 1,132,010,984 and 912,068,287 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively Additional paid-in capital Accumulated deficit Total stockholders’ equity (deficit) Total liabilities and stockholders’ equity (deficit) Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Income Statement [Abstract] Revenue Cost of net revenue Gross profit Operating expenses: Personnel costs Consulting fees Legal and professional fees Fund expenses Sales and marketing General and administrative Depreciation and amortization Total operating expenses Loss from operations Other income (expense): Interest expense Change in derivative liability Total other income (expense), net Provision for income taxes Net loss Weighted average common shares outstanding - basic and diluted Net loss per common share - basic and diluted Statement of Cash Flows [Abstract] Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash used in operating activities: Amortization of debt discount and original issue discount Change in fair value of derivative liability Financing related costs - debt Stock-based compensation expense Changes in operating assets and liabilities: Prepaid expenses and other current assets Accounts payable Accrued salaries and consulting fees Accrued interest and dividends Net cash used in operating activities Cash flows from investing activities: Other receivables Net cash used in investing activities Cash flows from financing activities: Net proceeds (repayments) from promissory note agreements Proceeds from issuance of convertible debenture agreements Proceeds from issuance of Series D preferred stock Net cash provided by financing activities Net change in cash Cash at beginning of period Cash at end of period Supplemental disclosure of cash flow information: Cash paid for income taxes Cash paid for interest Supplemental disclosure of non-cash financing activities: Exercise of common stock warrants Dividends on preferred stock Conversion of Series D preferred stock for common stock Deemed dividend on conversion of preferred stock Debenture conversions Reclassification of Series D preferred stock Derivative liability – inception Conversion of accrued consulting fees into common shares Conversion of related party notes payable into common shares Conversion of Series C preferred stock into common stock Beginning balance, value Begning balance, shares Common shares issued to board of directors Common shares issued to board of directors, shares Common shares issued for services and compensation Common shares issued for services and compensation, shares Debenture conversions Debenture conversions, shares Dividends on preferred stock Net loss Debenture conversions Debenture conversions, shares Conversion of notes and payables Conversion of notes and payables, shares Exercise of warrants Exercise of warrants, shares Conversion of Series D preferred stock for common stock Conversion of Series D preferred stock for common stock, shares Deemed dividend on conversion of preferred stock Reclassification of Series D preferred stock Ending balance, value Ending balance, shares Organization, Consolidation and Presentation of Financial Statements [Abstract] Nature of Business Accounting Changes and Error Corrections [Abstract] Correction of Previously Issued Financial Statements Accounting Policies [Abstract] Summary of Significant Accounting Policies Goodwill and Intangible Assets Disclosure [Abstract] Intangible Assets Debt Disclosure [Abstract] Notes Payable Convertible Notes Payable Derivative Instruments and Hedging Activities Disclosure [Abstract] Derivative Liability Equity [Abstract] Preferred Stock Stockholders’ Equity (Deficit) Share-Based Payment Arrangement [Abstract] Options and Warrants Related Party Transactions [Abstract] Related Party Transactions Subsequent Events [Abstract] Subsequent Events Going Concern Basis of Presentation Prior Period Adjustments Principles of Consolidation Use of Estimates Fair Value Measurements Earnings per Share Recent Pronouncements Schedule of Restatement of Company’s Financial Statements Schedule of Financial Instruments at Fair Value Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss Schedule of Convertible Debenture Outstanding Schedule of Convertible Debenture Outstanding Schedule of Conversion Feature of Derivative Liability Schedule of Derivative Liability Activity Accounting Standards Update and Change in Accounting Principle [Table] New Accounting Pronouncements or Change in Accounting Principle [Line Items] Total assets Total liabilities Common stock Total stockholders’ equity (deficit) Total liabilities and stockholders’ equity (deficit) Total operating expenses Net cash used in operating activities Schedule of Defined Benefit Plans Disclosures [Table] Defined Benefit Plan Disclosure [Line Items] Derivative instruments at fair value Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table] Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] Anti-dilutive securities Retained earnings accumulated deficit Working capital Finite lived intangible assets, net Amortization of intangible assets Schedule of Short-Term Debt [Table] Short-Term Debt [Line Items] Note payable outsanding Debt instrument interest rate Net proceeds loan payable Note original issue of discount Loans payable Loan matured date Beginning balance Convertible debenture - debt discount Allowance for Doubtful Accounts, Premiums and Other Receivables Conversion to common stock, net of discount Ending balance Principal amount outstanding Less: Unamortized original debt discount Less: Unamortized original issue discount Total Provision for doubtful debt Interest Expense Debt principal amount Stock issued during period shares conversion of units Fair Value Measurement Inputs and Valuation Techniques [Table] Fair Value Measurement Inputs and Valuation Techniques [Line Items] Derivative liability, measurement input Derivative liability, measurement input, term Exercise price of underlying common shares Derivative Instruments, Gain (Loss) [Table] Derivative Instruments, Gain (Loss) [Line Items] Balance as of December 31, 2021 Initial fair value per derivative recognition Conversion of debenture to common stock Change in fair value of derivative liability Balance as of June 30, 2022 Schedule of Stock by Class [Table] Class of Stock [Line Items] Number of common stock issue Proceeds from issuance of convertible preferred stock Warrant issued Warrant exercise price Conversion of shares Preferred stock value Prefered Stock Convertible shares Conversion Price per share Dividends Conversion price Fixed conversion price Preferred Stock shares outstanding Dividends payable Serie d prefrred stock Reclassified Series d prefrred stock Interest expense Preferred stock shares issuable Converted value Preferred stock, convertible, conversion price Warrants exercised Number of common stock issue, value Shares issued for exercise of warrants Number of shares converted Conversion of stock, shares issued Debt conversion, shares issued Debt conversion, shares issued value Schedule of Share-Based Compensation Arrangements by Share-Based Payment Award [Table] Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] Options outstanding Warrants outstanding Exercise of warrants, shares Schedule of Related Party Transactions, by Related Party [Table] Related Party Transaction [Line Items] Notes payable to related party Interest rate Accrued salaries Common shares issued for cash, shares Number of shares issued, value Common shares issued for cash, shares Receivables, net, current Other receivables Accounts payable to related parties Convertible notes payable net of debt discount. Series D preferred stock. Fund expenses. Financing related costs debt. Non cash financing exercise of common stock warrants. Dividends on preferred stock. Deemed dividend on conversion of preferred stock. Conversion of accrued consulting fees into common shares. Debenture conversions. Conversion of related party notes payable into common shares. Reclassification of series d preferred stock. Conversion of series c preferred stock into common stock. Common shares issued for services and compensation. Conversion of convertible debenture and notes. Shares issued conversion of notes and payables. Shares issued exercise of warrants. Additional paid in capital deemed dividend on conversion of preferred stock. Common shares issued for services and compensation shares. Conversion of convertible debenture and notes shares. Shares issued conversion of notes and payables shares. Shares issued exercise of warrants shares. Going Concern [PolicyTextBlock] Working capital. Note Payable [Member] Promissory Note [Member] Pride Partners LLC [Member] Securities Purchase Agreement [Member] Sixth Street Lending LLC [Member] Debenture [Member] Schedule of Balance Convertible Debenture Outstanding [Table Text Block] Original issue discount. EMA Financial, LLC [Member] Schedule Of Conversion Feature Of Derivative Liability [TableTextBlock] Derivative liability, measurement input, term Change in fair value of derivative liability. Conversion of principal amount of debenture to commonstock. Initial fair value per derivative recognition. GHS Investments, LLC [Member] Auctus [Member] Board Members [Member] Employees and Consultants [Member] Debentures [Member] Officers and Executive Director [Member] Seven Board Members [Member] Procure AMLLC [Member] Custodian [Member] Officers And Board Members [Member] Adjustment to additional paid in reclassification of preferred stock. Stock issued during period shares debenture conversion Stock issued during period value debenture conversion. Shares to be Issued Upon Conversion of Notes [Member] Convertible debenture - debt discount. Assets, Current Gross Profit Operating Income (Loss) Nonoperating Income (Expense) Increase (Decrease) in Prepaid Expense Increase (Decrease) in Accounts Payable Increase (Decrease) in Accrued Salaries Increase (Decrease) in Interest Payable, Net Payments to Acquire Other Receivables Net Cash Provided by (Used in) Investing Activities Net Cash Provided by (Used in) Financing Activities Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations Shares, Outstanding Conversion of convertible debenture and notes Dividends, Preferred Stock Net Income (Loss), Including Portion Attributable to Noncontrolling Interest StockIssuedDuringPeriodValueDebentureConversion StockIssuedDuringPeriodSharesDebentureConversion Stock Issued During Period, Value, Conversion of Convertible Securities AdditionalPaidInCapitalDeemedDividendOnConversionOfPreferredStock AdjustmentToAdditionalPaidInReclassificationOfPreferredStock ScheduleOfBalanceConvertibleDebentureOutstandingTableTextBlock Working capital Convertible Notes Payable, Current ConvertibleDebentureDebtDiscount Debt Instrument, Unamortized Discount, Current Notes Payable, Related Parties EX-101.PRE 13 lfap-20220630_pre.xml INLINE XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT XML 14 R1.htm IDEA: XBRL DOCUMENT v3.22.2.2
Cover - shares
6 Months Ended
Jun. 30, 2022
Nov. 09, 2022
Cover [Abstract]    
Document Type 10-Q/A  
Amendment Flag true  
Amendment Description This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and six months periods ended June 30, 2022 that we originally filed with the Securities and Exchange Commission, or the Commission, on October 17, 2022 or the Original Filing. The nature of our amendment was due to various accounts that required correction on our consolidated balance sheets and statements of operations  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Jun. 30, 2022  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --12-31  
Entity File Number 000-54867  
Entity Registrant Name LGBTQ LOYALTY HOLDINGS, INC.  
Entity Central Index Key 0001510247  
Entity Tax Identification Number 80-0671280  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 2435 Dixie Highway  
Entity Address, City or Town Wilton Manors  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33305  
City Area Code (858)  
Local Phone Number 577-1746  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1,179,890,617

XML 15 R2.htm IDEA: XBRL DOCUMENT v3.22.2.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Current assets:    
Cash $ 12,934 $ 78,348
Prepaid expenses and other current assets 8,270 6,925
Total current assets 21,204 85,273
Intangible assets, net 40,347 53,243
Total assets 61,551 138,516
Current liabilities:    
Accounts payable 1,408,776 985,917
Accrued salaries and consulting fees 723,007 660,331
Accrued interest and dividends 861,384 640,153
Notes payable 256,986 126,986
Notes payable to related party 71,800 1,800
Convertible notes payable, net of debt discount 2,415,028 2,195,145
Derivative liability on convertible notes payable 2,781,435 1,398,127
Series D preferred stock 1,758,224
Total liabilities 10,276,640 6,008,459
Commitments and contingencies
Stockholders’ equity (deficit):    
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 1,132,010,984 and 912,068,287 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 1,132,010 832,719
Additional paid-in capital 12,549,667 13,215,129
Accumulated deficit (23,896,819) (19,917,844)
Total stockholders’ equity (deficit) (10,215,089) (5,869,943)
Total liabilities and stockholders’ equity (deficit) 61,551 138,516
Series A Preferred Stock [Member]    
Stockholders’ equity (deficit):    
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
Series B Preferred Stock [Member]    
Stockholders’ equity (deficit):    
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
Series C Preferred Stock [Member]    
Stockholders’ equity (deficit):    
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively 52 52
Series D Preferred Stock [Member]    
Stockholders’ equity (deficit):    
Series D, 2,000 shares designated, 986 and 1,050 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively $ 1 $ 1
XML 16 R3.htm IDEA: XBRL DOCUMENT v3.22.2.2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2022
Dec. 31, 2021
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 2,000,000,000 2,000,000,000
Common stock, shares issued 1,132,010,984 912,068,287
Common stock, shares outstanding 1,132,010,984 912,068,287
Series A Preferred Stock [Member]    
Preferred stock, shares authorized 1 1
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Series B Preferred Stock [Member]    
Preferred stock, shares authorized 500,000 500,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Series C Preferred Stock [Member]    
Preferred stock, shares authorized 129,559 129,559
Preferred stock, shares issued 51,559 51,559
Preferred stock, shares outstanding 51,559 51,559
Series D Preferred Stock [Member]    
Preferred stock, shares authorized 2,000 2,000
Preferred stock, shares issued 986 1,050
Preferred stock, shares outstanding 986 1,050
XML 17 R4.htm IDEA: XBRL DOCUMENT v3.22.2.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement [Abstract]        
Revenue
Cost of net revenue
Gross profit
Operating expenses:        
Personnel costs 46,407 93,121 160,401 1,389,121
Consulting fees 11,250 38,500 26,500 71,500
Legal and professional fees 124,992 153,527 281,785 258,650
Fund expenses 100,000
Sales and marketing 71,237 40,500 98,939 40,500
General and administrative 15,028 28,392 51,345 56,514
Depreciation and amortization 6,448 6,448 12,896 12,896
Total operating expenses 275,362 360,488 731,866 1,829,181
Loss from operations (275,362) (360,488) (731,866) (1,829,181)
Other income (expense):        
Interest expense (1,419,622) (727,642) (1,525,750) (1,289,328)
Change in derivative liability (794,036) (2,658,949) (1,153,224) (2,245,976)
Total other income (expense), net (2,213,658) (3,386,591) (2,678,974) (3,535,304)
Provision for income taxes
Net loss $ (2,489,020) $ (3,747,079) $ (3,410,840) $ (5,364,485)
Weighted average common shares outstanding - basic and diluted 994,630,987 553,901,386 938,916,526 432,821,915
Net loss per common share - basic and diluted $ (0.003) $ (0.01) $ (0.004) $ (0.01)
XML 18 R5.htm IDEA: XBRL DOCUMENT v3.22.2.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash flows from operating activities:    
Net loss $ (3,410,840) $ (5,364,485)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of debt discount and original issue discount 109,690 704,007
Change in fair value of derivative liability 1,153,224 2,245,976
Financing related costs - debt 1,220,986 460,780
Stock-based compensation expense 1,218,114
Depreciation and amortization 12,896 12,896
Changes in operating assets and liabilities:    
Prepaid expenses and other current assets (1,345) 14,058
Accounts payable 422,984 (105,699)
Accrued salaries and consulting fees 62,550 201,470
Accrued interest and dividends 194,441 93,663
Net cash used in operating activities (235,414) (519,220)
Cash flows from investing activities:    
Other receivables (205,000)
Net cash used in investing activities (205,000)
Cash flows from financing activities:    
Net proceeds (repayments) from promissory note agreements 170,000 (1,000)
Proceeds from issuance of convertible debenture agreements 300,000
Proceeds from issuance of Series D preferred stock 574,100
Net cash provided by financing activities 170,000 873,100
Net change in cash (65,414) 148,880
Cash at beginning of period 78,348 30,312
Cash at end of period 12,934 179,192
Supplemental disclosure of cash flow information:    
Cash paid for income taxes
Cash paid for interest
Supplemental disclosure of non-cash financing activities:    
Exercise of common stock warrants 140,966 61,775
Dividends on preferred stock 44,870 11,241
Conversion of Series D preferred stock for common stock 74,000
Deemed dividend on conversion of preferred stock 523,266
Debenture conversions 126,562
Reclassification of Series D preferred stock 1,015,999
Derivative liability – inception 306,646
Conversion of accrued consulting fees into common shares 338,608
Conversion of related party notes payable into common shares 16,085
Conversion of Series C preferred stock into common stock $ 53,000
XML 19 R6.htm IDEA: XBRL DOCUMENT v3.22.2.2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)
Preferred Stock [Member]
Series A Preferred Stock [Member]
Preferred Stock [Member]
Series B Preferred Stock [Member]
Preferred Stock [Member]
Series C Preferred Stock [Member]
Preferred Stock [Member]
Series D Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Dec. 31, 2020 $ 50 $ 130 $ 263,725 $ 7,714,704 $ (13,239,189) $ (5,260,580)
Begning balance, shares at Dec. 31, 2020 50,000 129,559 263,725,234      
Common shares issued to board of directors $ 140,000 980,000 1,120,000
Common shares issued to board of directors, shares         140,000,000      
Common shares issued for services and compensation $ 31,834 204,614 236,448
Common shares issued for services and compensation, shares         31,834,386      
Debenture conversions $ 37,539 318,815 356,354
Debenture conversions, shares         37,538,998      
Dividends on preferred stock (1,722) (1,722)
Net loss (1,617,405) (1,617,405)
Ending balance, value at Mar. 31, 2021 $ 50 $ 130 $ 473,098 9,218,133 (14,858,316) (5,166,906)
Ending balance, shares at Mar. 31, 2021 50,000 129,559 473,098,618      
Beginning balance, value at Dec. 31, 2020 $ 50 $ 130 $ 263,725 7,714,704 (13,239,189) (5,260,580)
Begning balance, shares at Dec. 31, 2020 50,000 129,559 263,725,234      
Ending balance, value at Jun. 30, 2021 $ 50 $ 77 $ 1 $ 669,390 11,147,767 (18,614,915) (6,797,631)
Ending balance, shares at Jun. 30, 2021 50,000 76,559 550 669,390,677      
Beginning balance, value at Mar. 31, 2021 $ 50 $ 130 $ 473,098 9,218,133 (14,858,316) (5,166,906)
Begning balance, shares at Mar. 31, 2021 50,000 129,559 473,098,618      
Dividends on preferred stock (9,519) (9,519)
Net loss (3,747,079) (3,747,079)
Debenture conversions $ 100,449 1,821,061 1,921,510
Debenture conversions, shares         100,448,779      
Conversion of notes and payables $ 11,956 192,408 204,364
Conversion of notes and payables, shares         11,956,004      
Exercise of warrants $ 30,887 (30,887)
Exercise of warrants, shares         30,887,276      
Conversion of Series D preferred stock for common stock $ (53) $ 53,000 (52,947)
Conversion of Series D preferred stock for common stock, shares     (53,000)   53,000,000      
Ending balance, value at Jun. 30, 2021 $ 50 $ 77 $ 1 $ 669,390 11,147,767 (18,614,915) (6,797,631)
Ending balance, shares at Jun. 30, 2021 50,000 76,559 550 669,390,677      
Beginning balance, value at Dec. 31, 2021 $ 52 $ 1 $ 832,719 13,215,129 (19,917,844) (5,869,943)
Begning balance, shares at Dec. 31, 2021 51,559 1,050 832,719,287      
Dividends on preferred stock (22,720) (22,720)
Net loss (921,819) (921,819)
Exercise of warrants $ 43,349 (43,349)
Exercise of warrants, shares         43,349,000      
Conversion of Series D preferred stock for common stock $ 36,000 (36,000)
Conversion of Series D preferred stock for common stock, shares       (45) 36,000,000      
Deemed dividend on conversion of preferred stock 237,924 (237,924)
Ending balance, value at Mar. 31, 2022 $ 52 $ 1 $ 912,068 13,373,704 (21,100,307) (6,814,482)
Ending balance, shares at Mar. 31, 2022 51,559 1,005 912,068,287      
Debenture conversions $ 84,325 42,237 126,562
Debenture conversions, shares         84,325,397      
Dividends on preferred stock (22,150) (22,150)
Net loss (2,489,020) (2,489,020)
Exercise of warrants $ 97,617 (97,617)
Exercise of warrants, shares         97,617,300      
Conversion of Series D preferred stock for common stock $ 38,000 (38,000)
Conversion of Series D preferred stock for common stock, shares       (19) 38,000,000      
Deemed dividend on conversion of preferred stock 285,342 (285,342)
Reclassification of Series D preferred stock (1,015,999) (1,015,999)
Ending balance, value at Jun. 30, 2022 $ 52 $ 1 $ 1,132,010 $ 12,549,667 $ (23,896,819) $ (10,215,089)
Ending balance, shares at Jun. 30, 2022 51,559 986 1,132,010,984      
XML 20 R7.htm IDEA: XBRL DOCUMENT v3.22.2.2
Nature of Business
6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business

Note 1. Nature of Business

 

Throughout this report, the terms “our,” “we,” “us,” and the “Company” refer to LGBTQ Loyalty Holdings, Inc. (formerly LifeApps Brands Inc.), including its subsidiaries.

 

On January 25, 2019, we acquired LGBT Loyalty LLC, a New York limited liability company, with the goal of creating the first LGBTQ Loyalty Preference Index ETF (the “Index ETF”) to provide the LGBTQ community with the power to influence the allocation of capital within a financial Index ETF based upon LGBTQ consumer preferences. The Index ETF was intended to link the growing economic influence of the LGBTQ community and their allies with many of the top Fortune 500 companies that support and implement diversity, inclusion and equality policies within their organizations. The incorporation of diversity and inclusion in a company’s recruitment and human resource policies has become a key concern to investors as part of their growing focus on ESG allocations. Our data and analytics unequivocally reinforce that corporations that have embraced diversity and inclusion policies within their corporate culture perform at a higher level financially than their peers. This includes advancing a more invigorated workforce that attracts and retains the best talent. Innovation and agility have been identified as great benefits of diversity, and there is an increasing awareness of what has become known as ‘the power of difference’.

 

On October 30, 2019, through our wholly-owned subsidiary Loyalty Preference Index, Inc. (“LPI”) and our strategically aligned partnerships with crowd-sourced data and analytic providers, we launched the LGBTQ100 ESG Index. This Index integrates LGBTQ community survey data into the methodology for a benchmark listing of the nation’s highest financially performing large-cap publicly listed corporations that our respondents believe are most committed to advancing equality. LPI is the index provider for the LGBTQ + ESG100 ETF; LGBTQ Loyalty was the Sponsor for the prospectus that was filed by the licensed Fund Adviser ProcureAM, and was approved by the Securities and Exchange Commission (“SEC”) in early January 2020. The LGBTQ + ESG100 ETF (the “Fund”) sought to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index. In late 2020, LPI was renamed to Advancing Equality Preference, Inc.

 

On March 25, 2022, ProcureAM, LLC (“Adviser”), the adviser to the Fund, after consultation with the Company, the sponsor of the ETF, determined that the Fund should be closed. Based upon a recommendation by the Adviser, the Board of Trustees of Procure ETF Trust I (the “Trust”) approved a Plan of Liquidation for the Fund under which the Fund would be liquidated on or about April 28, 2022 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the officers of the Trust. Beginning when the Fund commences the liquidation of its portfolio, the Fund will not pursue its investment objectives or, with certain exceptions, engage in normal business activities, and the Fund may hold cash and securities that may not be consistent with the Fund’s investment objective and strategy, which may adversely affect Fund performance. On April 28, 2022, the Company effectuated the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation. As of this date, the Fund has ceased operations.

 

 

XML 21 R8.htm IDEA: XBRL DOCUMENT v3.22.2.2
Correction of Previously Issued Financial Statements
6 Months Ended
Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract]  
Correction of Previously Issued Financial Statements

Note 2. Correction of Previously Issued Financial Statements

 

Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and six months ended June 30, 2022, the Company discovered several errors in its accounts on its condensed consolidated balance sheets and statements of operations.

 

The tables below reflect the effect of restatement on the Company’s financial statements for the three and six month periods ending June 30, 2022:

                
   June 30, 2022 
   Original   Adjustment   As Restated 
Cash  $11,269   $1,665   $12,934 
Total assets  $59,886   $1,665   $61,551 
                
Accounts payable  $1,386,797   $21,979   $1,408,776 
Accrued salaries and consulting fees   743,321    (20,314)   723,007 
Derivative liability on convertible notes payable   2,769,066    12,369    2,781,435 
Total liabilities   10,262,606    14,034    10,276,640 
Common stock   1,132,007    3    1,132,010 
Additional paid-in capital   12,549,666    1    12,549,667 
Accumulated deficit   (23,884,446)   (12,373)   (23,896,819)
Total stockholders’ equity (deficit)   (10,202,720)   (12,369)   (10,215,089)
Total liabilities and stockholders’ equity (deficit)  $59,886   $1,665   $61,551 

 

                
   Six Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
General and administrative  $39,453   $11,892   $51,345 
Total operating expenses   719,974    11,892    731,866 
Interest expense   (1,525,116)   (634)   (1,525,750)
Change in derivative liability   (1,105,465)   (47,759)   (1,153,224)
Net loss  $(3,350,555)  $(60,285)  $(3,410,840)

 

                
   Six Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
Net cash used in operating activities  $(237,079)  $1,665   $(235,414)

 

                
   Three Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
Debenture conversions  $114,040   $12,522   $126,562 

 

Furthermore, in the three months ended March 31, 2022, the deemed dividends related to Preferred Stock conversions were incorrectly recorded (instead of debiting shareholder deficit and crediting additional paid in capital, it did the opposite). They have been corrected in the second quarter. As the effect is a reclass within equity, we consider the change to be qualitatively immaterial.

 

XML 22 R9.htm IDEA: XBRL DOCUMENT v3.22.2.2
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 3. Summary of Significant Accounting Policies

 

Going Concern

 

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“US GAAP”), which contemplates our continuation as a going concern. We have incurred losses to date of $23,896,819 and have negative working capital of $10,255,436 as of June 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third-party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Basis of Presentation

 

We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2022. Certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.

 

Prior Period Adjustments

 

In the first quarter of 2022, we determined that the Series D preferred stock included a substantive conversion option, and therefore should be equity classified. Previously, the amount was included as a current liability. We have reclassified the amount to Series D preferred stock equity and additional paid-in capital on the consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2021. We do not believe the change to be qualitatively material to the consolidated financial statements as of December 31, 2021.

 

Principles of Consolidation

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, LGBTQ Loyalty, LLC, and Advancing Equality Preference, Inc. All material inter-company transactions and balances have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

 

 

Fair Value Measurements

 

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

 

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

 

Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

 

Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights and derivative liabilities.

 

Our financial instruments consist of cash, other current assets, accounts payables, accruals, and notes payable. The carrying values of these instruments approximate fair value because of the short-term maturities. The fair value of the Company’s convertible debentures and promissory notes approximates their carrying values as the underlying imputed interest rates approximates the estimated current market rate for similar instruments. The derivative is measured as a Level 3 instrument due to the various inputs which requires significant management judgment. Refer to Note 6 for detail.

 

The following table is a summary of our financial instruments measured at fair value:

 

   Fair Value Measurements 
   as of June 30, 2022: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable and preferred stock  $-   $-   $2,781,435   $2,781,435 
   $-   $-   $2,781,435   $2,781,435 

 

   Fair Value Measurements 
   as of December 31, 2021: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable  $-   $-   $1,398,127   $1,398,127 
                     
   $-   $-   $1,398,127   $1,398,127 

 

Refer to Note 7 for detail on the unobservable inputs used in the fair value of the derivative liability.

 

 

Earnings per Share

 

We calculate earnings per share in accordance with ASC Topic 260 Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants. The diluted earnings per share were not calculated because we recorded net losses for the three and six months ended June 30, 2022 and 2021, and the outstanding stock options and warrants are anti-dilutive. For the three and six months ended June 30, 2022 and 2021, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:

 

 

   2022   2021 
   Six Months Ended 
   June 30, 
   2022   2021 
Stock options outstanding   -    1,800,000 
Warrants   28,333,333    204,946,057 
Shares to be issued upon conversion of notes   6,170,908,567    203,651,096 
Series D preferred stock   2,010,000,000    67,826 
Anti-dilutive securities   8,209,241,900    410,464,979 

  

Recent Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

 

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

 

XML 23 R10.htm IDEA: XBRL DOCUMENT v3.22.2.2
Intangible Assets
6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

Note 4. Intangible Assets

 

The Company capitalizes costs pertaining to the development of the LGBTQ100 ESG Index website. The Company began amortizing these costs upon the launch of the index, and will amortize the costs over a three-year useful life.

 

At June 30, 2022 and December 31, 2021, net intangible assets were $40,347 and $53,243, respectively. Amortization expense was $12,896 for both the six months ended June 30, 2022 and 2021, respectively.

 

 

XML 24 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
Notes Payable
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Notes Payable

Note 5. Notes Payable

 

As of June 30, 2022 and December 31, 2021, the Company has a note payable outstanding in the amount of $1,986. The note is past due at June 30, 2022 and is, therefore, in default. The note accrues interest at a rate of 2% per annum.

 

In December 2019, the Company issued a promissory note to Pride Partners LLC (“Pride”) for $75,000. The note is secured, accrues interest at a rate of 10% per annum, and matured on June 20, 2020. As of June 30, 2022, the full principal amount was outstanding and in default.

 

In 2019, the Company issued a promissory note for $50,000. The note includes $2,500 in original issue discount. The noted is unsecured and matured in December 2019. As of June 30, 2022, the full principal amount was outstanding an in default.

 

In April 2022, Advancing Equality Preference entered into a loan payable for $130,000 for proceeds of $100,000. The loan matured on June 30, 2022 and is currently in default.

 

XML 25 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Convertible Notes Payable
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Convertible Notes Payable

Note 6. Convertible Notes Payable

 

During the six months ended June 30, 2022 and 2021, the Company recorded amortization of debt discount and original issue discount of $109,690 and $582,631, respectively, for all convertible debentures. This amount is included in interest expense in our consolidated statements of operations.

 

The Company did not file its Form 10-Q for the quarter ended March 31, 2022 on a timely basis. As a result, several default provisions were triggered with the Company’s outstanding debentures. The Company recorded an additional $374,125 in additional principal owed upon this default provision. Accordingly, the Company recorded $374,125 in interest expense in the consolidated statements of operations.

 

The following is a summary of the activity of the convertible notes payable and convertible debenture for the six months ended June 30, 2022:

 

   Convertible 
   Debenture 
Balance as of December 31, 2021  $2,195,145 
Convertible debenture - debt discount   (213,932)
Additional principal per default provisions   374,125 
Amortization of debt discount and original issue discount   109,690 
Conversion to common stock, net of discount   (50,000)
Balance as of June 30, 2022  $2,415,028 

 

The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:

 

   June 30,   December 31, 
   2022   2021 
Principal amount outstanding  $2,545,152   $2,221,027 
Less: Unamortized original debt discount   (123,421)   - 
Less: Unamortized original issue discount   (6,703)   (25,882)
Total  $2,415,028   $2,195,145 

 

 

As of June 30, 2022 and December 31, 2021, the EMA Note was in default and the parity value of the EMA Note was determined to be $434,687. In 2021, the Company issued 60,714,000 shares of common stock pursuant to conversions of outstanding principal.

 

XML 26 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Derivative Liability
6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liability

Note 7. Derivative Liability

 

We evaluated the terms of the conversion features of the debentures and related debenture warrants as noted above and below, in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock, and determined they are indexed to the Company’s common stock and that the conversion features meet the definition of a liability. Therefore, we bifurcated the conversion feature and accounted for it as a separate derivative liability.

 

To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded.

 

We value the conversion feature at origination of the notes using the Black-Scholes valuation model with the below assumptions. We value the derivative liability at the end of each accounting period, and upon conversion of the underlying note or warrant, with the difference in value recognized as gain or loss included in other income (expense) in our consolidated statements of operations.

 

   Six Months Ended 
   June 30, 
   2022   2021 
Risk-free interest rate    2.01%   0.09%
Expected term (in years)    0.48    1.00 
Expected volatility    154.5%   237.4%
Expected dividend yield    0%   0%
Exercise price of underlying common shares  $0.001   $0.004 

 

During the six months ended June 30, 2022, the entire value of the principal of the debentures was assigned to the derivative liability and recognized as a debt discount. The debt discount is recorded as reduction (contra-liability) to the debentures and is being amortized over the initial term. Any excess balance was recognized as origination interest on the derivative liability and expensed on origination. In accordance with the Company’s sequencing policy, shares issuable pursuant to the convertible debentures would be settled subsequent to the Company’s Series B preferred stock.

 

The following is a summary of the activity of the derivative liability for the six months ended June 30, 2022:

 

     
   Debenture 
Balance as of December 31, 2021  $1,398,127 
Initial fair value per derivative recognition   306,646 
Conversion of debenture to common stock   (76,562)
Change in fair value of derivative liability   1,153,224 
Balance as of June 30, 2022  $2,781,435 

 

 

XML 27 R14.htm IDEA: XBRL DOCUMENT v3.22.2.2
Preferred Stock
6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Preferred Stock

Note 8. Preferred Stock

 

Series D Convertible Preferred Stock

 

On April 8, 2021, the Company issued 400 shares of Series D Convertible Preferred Stock (the Series D Preferred Stock”) to GHS Investments, LLC (“GHS”) pursuant to a Securities Purchase Agreement (“GHS April Agreement”) for net proceeds of $427,600. In conjunction with the GHS Agreement, the Company issued warrants to purchase 40,000,000 shares of common stock at an exercise price of $0.001.

 

On May 12, 2021, the Company issued 150 shares of Series D Preferred Stock to GHS Investments, LLC pursuant to a Securities Purchase Agreement (“GHS May Agreement”) for net proceeds of $146,500. In conjunction with the GHS Agreement, the Company issued warrants to purchase 1,500,000 shares of common stock at an exercise price of $0.001.

 

Notwithstanding, on June 23, 2021, GHS and the Company entered into a Rescission Agreement (the “Rescission Agreement”) pursuant to which the Company and GHS agreed to rescind, ab initio, the issuances of Warrants to GHS. Pursuant to the Rescission Agreement, GHS and the Company agreed that the issuance of the Warrants are unconditionally and irrevocably rescinded ab initio by GHS and the Company, and the Warrants are neither valid nor effective in any manner whatsoever. Further, GHS and the Company acknowledged that each has been restored to the position in which such party found itself on the date that the respective GHS Agreement was executed but without any references, rights or obligations relative to the Warrants contained in, or otherwise granted in, either the GHS Agreements or the Warrants. As a result, GHS has no rights whatsoever to the Warrants and the Company has no rights whatsoever to the any exercise price that it may have received pursuant to the Warrants. In connection with the execution and delivery of the Rescission Agreement, the Company and GHS entered into two (2) Amended and Restated Purchase Agreements which each seek to amend and restate the terms and conditions contained in the April Agreement and the May Agreement.

 

On July 14, 2021, the Company issued 250 shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS July Agreement”) for net proceeds of $237,500. On August 20, 2021, the Company issued 250 shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS August Agreement”) for net proceeds of $250,000.

 

On the one-year anniversary of the date of issuance of the Preferred Stock, the Company must redeem the Preferred Stock then outstanding at a price equal to the outstanding Stated Value together with any accrued but unpaid dividends.

 

In January 2022, GHS converted 45 shares of Series D preferred stock with a stated value of $54,000 for 36,000,000 shares of common stock at a conversion price of $0.0015 per share. As a result of the conversion, the Company recorded a deemed dividend of $237,924, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($0.0015) and original fixed conversion price of $0.008109.

 

In June 2022, GHS converted 19 shares of Series D preferred stock with a stated value of $22,800 for 38,000,000 shares of common stock at a conversion price of $0.0006 per share. As a result of the conversion, the Company recorded a deemed dividend of $285,342, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($0.0006) and original fixed conversion price of $0.008109.

 

As of June 30, 2022, there were 986 shares of Series D preferred stock outstanding, and $97,814 in accrued Series D dividends. As of December 31, 2021, there were 1,050 shares of Series D preferred stock outstanding, and $52,944 in accrued Series D dividends.

 

Due to the Company’s late filing on its Form 10-Q for the quarter ended March 31, 2022 (see Note 7), default provisions were triggered with the GHS agreement. As a result, it was determined all preferred stock were due for redemption immediately. The Company determined that $1,758,224, inclusive of the stated value of the Series D preferred stock, and inclusive of accrued dividends, default penalties and interest, was due. As such, the Company reclassified $1,015,999 of Series D preferred stock from additional paid-in capital to a current liability. The remaining amount of $644,411 was included in interest expense in the consolidated statements of operations.

 

XML 28 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
Stockholders’ Equity (Deficit)
6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Stockholders’ Equity (Deficit)

Note 9. Stockholders’ Equity (Deficit)

 

Common Stock

 

In January 2022, GHS converted 45 shares of Series D preferred stock with a stated value of $54,000 for 36,000,000 shares of common stock at a conversion price of $0.0015 per share.

 

In June 2022, GHS converted 19 shares of Series D preferred stock with a stated value of $57,000 for 38,000,000 shares of common stock at a conversion price of $0.0006 per share.

 

In the six months ended June 30, 2022, Auctus exercised warrants for 140,966,300 shares of common stock.

 

In March 2021, an aggregate of 140,000,000 shares of common stock were issued to the board members for accrued dividends as well as current compensation the year ended December 31, 2021. Of these shares issuances, $961,666 is included in personnel costs in the consolidated statements of operations.

 

In March 2021, an aggregate of 31,834,386 shares of common stock were issued to employees and consultants for accrued and current consulting services for a total fair value of $236,448.

 

In June 2021, an aggregate of 11,956,004 shares of common stock were issued pursuant to conversion of balances owed to a related party and accrued consulting services totaling $204,364.

 

In June 2021, Auctus exercised 32,142,857 warrants into shares of common stock.

 

During the six months ended June 30, 2021, Pride converted 53,000 shares of Series C preferred stock for 53,000,000 shares of common stock.

 

During the six months ended June 30, 2022 and 2021, the Company issued 84,325,397 and 137,987,777 shares of common stock pursuant to conversion of debentures in the principal amount of $50,000 and $495,247, all respectively.

 

XML 29 R16.htm IDEA: XBRL DOCUMENT v3.22.2.2
Options and Warrants
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Options and Warrants

Note 10. Options and Warrants

 

Options

 

As of June 30, 2022 and December 31, 2021, we had 0 options remaining outstanding pursuant to the 2012 Equity Incentive Plan.

 

Warrants

 

As of June 30, 2022 and December 31, 2021, we had 28,333,333 and 174,058,782 warrants outstanding, respectively, with a weighted average exercise price of $0.01 and $0.02 per share. In the six months ended June 30, 2022, Auctus exercised warrants for 140,966,300 shares of common stock.

 

 

XML 30 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Related Party Transactions
6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

Note 11. Related Party Transactions

 

Parties, which can be a corporation or an individual, are considered to be related if we have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.

 

Notes Payable to Related Party

 

Notes payable to related parties at June 30, 2022 and December 31, 2021 included a note of $1,800 with a 2% annual interest rate. Currently the Company has defaulted on this obligation. Forbearance has been granted by the related party.

 

In February 2022, the Company issued a promissory note to a related party for $70,000. The note is unsecured and matured in April 2022. The note does not bear interest. The note includes a promise to issue shares of the Company’s preferred stock, which was undetermined as of June 30, 2022. As of June 30, 2022, the note was in default.

 

Accrued Salaries and Compensation

 

As of June 30, 2022 and December 31, 2021, accrued salaries to our company officers and executive director totaled $522,804 and $472,804, respectively, and is included in accrued salaries and consulting fees in our consolidated balance sheets.

 

In March 2021, we issued 200,000,000 shares of common stock to the Chief Operating Officer for a total fair value of $160,000.

 

Board of Directors

 

In March 2021, we issued 20,000,000 shares of common stock to each of the seven board members, including the Chief Executive Officer, for an aggregate of 140,000,000 shares. Of these share issuances, $961,666 is included in personnel costs in the consolidated statements of operations and the remaining $138,334 was converted from accrued salaries and consulting fees.

 

A former board member is the co-founder and president of ProcureAM, LLC, the fund advisor for the Fund. During 2021, we initially received $100,000 from ProcureAM and provided an additional $305,000 to the custodian. As of December 31, 2021, we have recorded $305,000 in fund expenses and do not expect to receive any amounts back from ProcureAM. In the six months ended June 30, 2022, we recorded an additional $100,000 in fund expenses which we do not expect to receive any amounts back from ProcureAM. As such, other receivable was $0 on the consolidated balance sheets.

 

On April 15, 2022, Deborah Fuhr submitted her resignation as a member of the Board, effective immediately. Ms. Fuhr submitted her resignation to pursue other interests. The Company’s Board accepted Ms. Fuhr’s resignation and expressed its appreciation for the services she provided to the Company.

 

Accounts Payable

 

As of June 30, 2022 and December 31, 2021, the Company had $168,308 and $102,808, respectively, included in accounts payable to related parties including officers and board members.

 

XML 31 R18.htm IDEA: XBRL DOCUMENT v3.22.2.2
Subsequent Events
6 Months Ended
Jun. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events

Note 12. Subsequent Events

 

Management has evaluated all activity up to November 11, 2022 and concluded that no subsequent events have occurred that would require recognition in these financial statements or disclosure in the notes to these financial statements other than the following:

 

On August 25, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Director of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respective shares of Common Stock back to the Company.

XML 32 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Going Concern

Going Concern

 

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“US GAAP”), which contemplates our continuation as a going concern. We have incurred losses to date of $23,896,819 and have negative working capital of $10,255,436 as of June 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third-party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Basis of Presentation

Basis of Presentation

 

We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2022. Certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.

 

Prior Period Adjustments

Prior Period Adjustments

 

In the first quarter of 2022, we determined that the Series D preferred stock included a substantive conversion option, and therefore should be equity classified. Previously, the amount was included as a current liability. We have reclassified the amount to Series D preferred stock equity and additional paid-in capital on the consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2021. We do not believe the change to be qualitatively material to the consolidated financial statements as of December 31, 2021.

 

Principles of Consolidation

Principles of Consolidation

 

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, LGBTQ Loyalty, LLC, and Advancing Equality Preference, Inc. All material inter-company transactions and balances have been eliminated in consolidation.

 

Use of Estimates

Use of Estimates

 

The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.

 

 

Fair Value Measurements

Fair Value Measurements

 

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

 

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

 

Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

 

Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights and derivative liabilities.

 

Our financial instruments consist of cash, other current assets, accounts payables, accruals, and notes payable. The carrying values of these instruments approximate fair value because of the short-term maturities. The fair value of the Company’s convertible debentures and promissory notes approximates their carrying values as the underlying imputed interest rates approximates the estimated current market rate for similar instruments. The derivative is measured as a Level 3 instrument due to the various inputs which requires significant management judgment. Refer to Note 6 for detail.

 

The following table is a summary of our financial instruments measured at fair value:

 

   Fair Value Measurements 
   as of June 30, 2022: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable and preferred stock  $-   $-   $2,781,435   $2,781,435 
   $-   $-   $2,781,435   $2,781,435 

 

   Fair Value Measurements 
   as of December 31, 2021: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable  $-   $-   $1,398,127   $1,398,127 
                     
   $-   $-   $1,398,127   $1,398,127 

 

Refer to Note 7 for detail on the unobservable inputs used in the fair value of the derivative liability.

 

 

Earnings per Share

Earnings per Share

 

We calculate earnings per share in accordance with ASC Topic 260 Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants. The diluted earnings per share were not calculated because we recorded net losses for the three and six months ended June 30, 2022 and 2021, and the outstanding stock options and warrants are anti-dilutive. For the three and six months ended June 30, 2022 and 2021, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:

 

 

   2022   2021 
   Six Months Ended 
   June 30, 
   2022   2021 
Stock options outstanding   -    1,800,000 
Warrants   28,333,333    204,946,057 
Shares to be issued upon conversion of notes   6,170,908,567    203,651,096 
Series D preferred stock   2,010,000,000    67,826 
Anti-dilutive securities   8,209,241,900    410,464,979 

  

Recent Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

 

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

 

Recent Pronouncements

Recent Pronouncements

 

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

 

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

XML 33 R20.htm IDEA: XBRL DOCUMENT v3.22.2.2
Correction of Previously Issued Financial Statements (Tables)
6 Months Ended
Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract]  
Schedule of Restatement of Company’s Financial Statements

The tables below reflect the effect of restatement on the Company’s financial statements for the three and six month periods ending June 30, 2022:

                
   June 30, 2022 
   Original   Adjustment   As Restated 
Cash  $11,269   $1,665   $12,934 
Total assets  $59,886   $1,665   $61,551 
                
Accounts payable  $1,386,797   $21,979   $1,408,776 
Accrued salaries and consulting fees   743,321    (20,314)   723,007 
Derivative liability on convertible notes payable   2,769,066    12,369    2,781,435 
Total liabilities   10,262,606    14,034    10,276,640 
Common stock   1,132,007    3    1,132,010 
Additional paid-in capital   12,549,666    1    12,549,667 
Accumulated deficit   (23,884,446)   (12,373)   (23,896,819)
Total stockholders’ equity (deficit)   (10,202,720)   (12,369)   (10,215,089)
Total liabilities and stockholders’ equity (deficit)  $59,886   $1,665   $61,551 

 

                
   Six Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
General and administrative  $39,453   $11,892   $51,345 
Total operating expenses   719,974    11,892    731,866 
Interest expense   (1,525,116)   (634)   (1,525,750)
Change in derivative liability   (1,105,465)   (47,759)   (1,153,224)
Net loss  $(3,350,555)  $(60,285)  $(3,410,840)

 

                
   Six Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
Net cash used in operating activities  $(237,079)  $1,665   $(235,414)

 

                
   Three Months Ended June 30, 2022 
   Original   Adjustment   As Restated 
Debenture conversions  $114,040   $12,522   $126,562 
XML 34 R21.htm IDEA: XBRL DOCUMENT v3.22.2.2
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Schedule of Financial Instruments at Fair Value

The following table is a summary of our financial instruments measured at fair value:

 

   Fair Value Measurements 
   as of June 30, 2022: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable and preferred stock  $-   $-   $2,781,435   $2,781,435 
   $-   $-   $2,781,435   $2,781,435 

 

   Fair Value Measurements 
   as of December 31, 2021: 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Derivative liability on convertible notes payable  $-   $-   $1,398,127   $1,398,127 
                     
   $-   $-   $1,398,127   $1,398,127 
Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss

 

 

   2022   2021 
   Six Months Ended 
   June 30, 
   2022   2021 
Stock options outstanding   -    1,800,000 
Warrants   28,333,333    204,946,057 
Shares to be issued upon conversion of notes   6,170,908,567    203,651,096 
Series D preferred stock   2,010,000,000    67,826 
Anti-dilutive securities   8,209,241,900    410,464,979 

  

XML 35 R22.htm IDEA: XBRL DOCUMENT v3.22.2.2
Convertible Notes Payable (Tables)
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Convertible Debenture Outstanding

The following is a summary of the activity of the convertible notes payable and convertible debenture for the six months ended June 30, 2022:

 

   Convertible 
   Debenture 
Balance as of December 31, 2021  $2,195,145 
Convertible debenture - debt discount   (213,932)
Additional principal per default provisions   374,125 
Amortization of debt discount and original issue discount   109,690 
Conversion to common stock, net of discount   (50,000)
Balance as of June 30, 2022  $2,415,028 

 

The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:

 

   June 30,   December 31, 
   2022   2021 
Principal amount outstanding  $2,545,152   $2,221,027 
Less: Unamortized original debt discount   (123,421)   - 
Less: Unamortized original issue discount   (6,703)   (25,882)
Total  $2,415,028   $2,195,145 
Schedule of Convertible Debenture Outstanding

The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:

 

   June 30,   December 31, 
   2022   2021 
Principal amount outstanding  $2,545,152   $2,221,027 
Less: Unamortized original debt discount   (123,421)   - 
Less: Unamortized original issue discount   (6,703)   (25,882)
Total  $2,415,028   $2,195,145 
XML 36 R23.htm IDEA: XBRL DOCUMENT v3.22.2.2
Derivative Liability (Tables)
6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Conversion Feature of Derivative Liability

 

   Six Months Ended 
   June 30, 
   2022   2021 
Risk-free interest rate    2.01%   0.09%
Expected term (in years)    0.48    1.00 
Expected volatility    154.5%   237.4%
Expected dividend yield    0%   0%
Exercise price of underlying common shares  $0.001   $0.004 
Schedule of Derivative Liability Activity

The following is a summary of the activity of the derivative liability for the six months ended June 30, 2022:

 

     
   Debenture 
Balance as of December 31, 2021  $1,398,127 
Initial fair value per derivative recognition   306,646 
Conversion of debenture to common stock   (76,562)
Change in fair value of derivative liability   1,153,224 
Balance as of June 30, 2022  $2,781,435 
XML 37 R24.htm IDEA: XBRL DOCUMENT v3.22.2.2
Schedule of Restatement of Company’s Financial Statements (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Mar. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Cash $ 12,934   $ 12,934     $ 78,348    
Total assets 61,551   61,551     138,516    
Accounts payable 1,408,776   1,408,776     985,917    
Accrued salaries and consulting fees 723,007   723,007     660,331    
Derivative liability on convertible notes payable 2,781,435   2,781,435     1,398,127    
Total liabilities 10,276,640   10,276,640     6,008,459    
Common stock 1,132,010   1,132,010     832,719    
Additional paid-in capital 12,549,667   12,549,667     13,215,129    
Accumulated deficit (23,896,819)   (23,896,819)     (19,917,844)    
Total stockholders’ equity (deficit) (10,215,089) $ (6,797,631) (10,215,089) $ (6,797,631) $ (6,814,482) (5,869,943) $ (5,166,906) $ (5,260,580)
Total liabilities and stockholders’ equity (deficit) 61,551   61,551     $ 138,516    
General and administrative 15,028 28,392 51,345 56,514        
Total operating expenses 275,362 360,488 731,866 1,829,181        
Interest expense (1,419,622) (727,642) (1,525,750) (1,289,328)        
Change in derivative liability (794,036) (2,658,949) (1,153,224) (2,245,976)        
Net loss (2,489,020) $ (3,747,079) (3,410,840) (5,364,485)        
Net cash used in operating activities     (235,414) (519,220)        
Debenture conversions 126,562   126,562        
Previously Reported [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Cash 11,269   11,269          
Total assets 59,886   59,886          
Accounts payable 1,386,797   1,386,797          
Accrued salaries and consulting fees 743,321   743,321          
Derivative liability on convertible notes payable 2,769,066   2,769,066          
Total liabilities 10,262,606   10,262,606          
Common stock 1,132,007   1,132,007          
Additional paid-in capital 12,549,666   12,549,666          
Accumulated deficit (23,884,446)   (23,884,446)          
Total stockholders’ equity (deficit) (10,202,720)   (10,202,720)          
Total liabilities and stockholders’ equity (deficit) 59,886   59,886          
General and administrative     39,453          
Total operating expenses     719,974          
Interest expense     (1,525,116)          
Change in derivative liability     (1,105,465)          
Net loss     (3,350,555)          
Net cash used in operating activities     (237,079)          
Debenture conversions 114,040              
Revision of Prior Period, Adjustment [Member]                
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                
Cash 1,665   1,665          
Total assets 1,665   1,665          
Accounts payable 21,979   21,979          
Accrued salaries and consulting fees (20,314)   (20,314)          
Derivative liability on convertible notes payable 12,369   12,369          
Total liabilities 14,034   14,034          
Common stock 3   3          
Additional paid-in capital 1   1          
Accumulated deficit (12,373)   (12,373)          
Total stockholders’ equity (deficit) (12,369)   (12,369)          
Total liabilities and stockholders’ equity (deficit) 1,665   1,665          
General and administrative     11,892          
Total operating expenses     11,892          
Interest expense     (634)          
Change in derivative liability     (47,759)          
Net loss     (60,285)          
Net cash used in operating activities     $ 1,665          
Debenture conversions $ 12,522              
XML 38 R25.htm IDEA: XBRL DOCUMENT v3.22.2.2
Schedule of Financial Instruments at Fair Value (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]    
Derivative liability on convertible notes payable $ 2,781,435 $ 1,398,127
Derivative instruments at fair value 2,781,435 1,398,127
Fair Value, Inputs, Level 1 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Derivative liability on convertible notes payable
Derivative instruments at fair value
Fair Value, Inputs, Level 2 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Derivative liability on convertible notes payable
Derivative instruments at fair value
Fair Value, Inputs, Level 3 [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Derivative liability on convertible notes payable 2,781,435 1,398,127
Derivative instruments at fair value $ 2,781,435 $ 1,398,127
XML 39 R26.htm IDEA: XBRL DOCUMENT v3.22.2.2
Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss (Details) - shares
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities 8,209,241,900 410,464,979
Stock Option Outstanding [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities 1,800,000
Warrants [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities 28,333,333 204,946,057
Shares to be Issued Upon Conversion of Notes [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities 6,170,908,567 203,651,096
Series D Preferred Stock [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities 2,010,000,000 67,826
XML 40 R27.htm IDEA: XBRL DOCUMENT v3.22.2.2
Summary of Significant Accounting Policies (Details Narrative) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Retained earnings accumulated deficit $ 23,896,819 $ 19,917,844
Working capital $ 10,255,436  
XML 41 R28.htm IDEA: XBRL DOCUMENT v3.22.2.2
Intangible Assets (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Finite lived intangible assets, net $ 40,347   $ 53,243
Amortization of intangible assets $ 12,896 $ 12,896  
XML 42 R29.htm IDEA: XBRL DOCUMENT v3.22.2.2
Notes Payable (Details Narrative) - USD ($)
1 Months Ended 12 Months Ended
Apr. 30, 2022
Dec. 31, 2019
Dec. 31, 2019
Jun. 30, 2022
Dec. 31, 2021
Short-Term Debt [Line Items]          
Debt instrument interest rate       2.00% 2.00%
Net proceeds loan payable $ 100,000        
Loans payable $ 130,000        
Loan matured date Jun. 30, 2022        
Note Payable [Member]          
Short-Term Debt [Line Items]          
Note payable outsanding       $ 1,986 $ 1,986
Promissory Note [Member]          
Short-Term Debt [Line Items]          
Net proceeds loan payable     $ 50,000    
Note original issue of discount   $ 2,500 $ 2,500    
Promissory Note [Member] | Pride Partners LLC [Member]          
Short-Term Debt [Line Items]          
Debt instrument interest rate   10.00% 10.00%    
Net proceeds loan payable   $ 75,000      
XML 43 R30.htm IDEA: XBRL DOCUMENT v3.22.2.2
Schedule of Convertible Debenture Outstanding (Details) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Short-Term Debt [Line Items]      
Beginning balance $ 2,195,145    
Amortization of debt discount and original issue discount 109,690 $ 704,007  
Ending balance 2,415,028    
Principal amount outstanding 2,545,152   $ 2,221,027
Less: Unamortized original debt discount (123,421)  
Less: Unamortized original issue discount (6,703)   (25,882)
Total 2,415,028   2,195,145
Debenture [Member]      
Short-Term Debt [Line Items]      
Beginning balance 2,195,145    
Convertible debenture - debt discount (213,932)    
Allowance for Doubtful Accounts, Premiums and Other Receivables 374,125    
Amortization of debt discount and original issue discount 109,690    
Conversion to common stock, net of discount (50,000)    
Ending balance 2,415,028    
Total $ 2,415,028   $ 2,195,145
XML 44 R31.htm IDEA: XBRL DOCUMENT v3.22.2.2
Convertible Notes Payable (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Short-Term Debt [Line Items]            
Amortization of debt discount and original issue discount       $ 109,690 $ 704,007  
Provision for doubtful debt   $ 374,125        
Interest Expense $ 1,419,622   $ 727,642 1,525,750 1,289,328  
Debt principal amount 2,545,152     2,545,152   $ 2,221,027
Convertible Notes Payable [Member]            
Short-Term Debt [Line Items]            
Interest Expense   $ 374,125        
Securities Purchase Agreement [Member] | Sixth Street Lending LLC [Member]            
Short-Term Debt [Line Items]            
Amortization of debt discount and original issue discount       109,690 $ 582,631  
Securities Purchase Agreement [Member] | EMA Financial, LLC [Member]            
Short-Term Debt [Line Items]            
Debt principal amount $ 434,687     $ 434,687   $ 434,687
Stock issued during period shares conversion of units           60,714,000
XML 45 R32.htm IDEA: XBRL DOCUMENT v3.22.2.2
Schedule of Conversion Feature of Derivative Liability (Details)
6 Months Ended
Jun. 30, 2022
$ / shares
Jun. 30, 2021
$ / shares
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Exercise price of underlying common shares $ 0.001 $ 0.004
Measurement Input, Risk Free Interest Rate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative liability, measurement input 2.01 0.09
Measurement Input, Expected Term [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative liability, measurement input, term 5 months 23 days 1 year
Measurement Input, Price Volatility [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative liability, measurement input 154.5 237.4
Measurement Input, Expected Dividend Rate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative liability, measurement input 0 0
XML 46 R33.htm IDEA: XBRL DOCUMENT v3.22.2.2
Schedule of Derivative Liability Activity (Details)
6 Months Ended
Jun. 30, 2022
USD ($)
Derivative Instruments, Gain (Loss) [Line Items]  
Balance as of December 31, 2021 $ 1,398,127
Balance as of June 30, 2022 2,781,435
Debenture [Member]  
Derivative Instruments, Gain (Loss) [Line Items]  
Balance as of December 31, 2021 1,398,127
Initial fair value per derivative recognition 306,646
Conversion of debenture to common stock (76,562)
Change in fair value of derivative liability 1,153,224
Balance as of June 30, 2022 $ 2,781,435
XML 47 R34.htm IDEA: XBRL DOCUMENT v3.22.2.2
Preferred Stock (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jan. 31, 2022
Aug. 20, 2021
Jul. 14, 2021
May 12, 2021
Apr. 08, 2021
Mar. 31, 2021
Mar. 31, 2022
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Class of Stock [Line Items]                      
Number of common stock issue             140,000,000        
Warrant exercise price $ 0.01               $ 0.01   $ 0.02
Conversion price 0.0006 $ 0.0015                  
Fixed conversion price $ 0.008109 $ 0.008109                  
Serie d prefrred stock $ 1,758,224               $ 1,758,224  
Reclassified Series d prefrred stock                 1,015,999  
Convertible [Member]                      
Class of Stock [Line Items]                      
Dividends 285,342 $ 237,924                  
Series D Preferred Stock [Member]                      
Class of Stock [Line Items]                      
Proceeds from issuance of convertible preferred stock           $ 427,600          
Warrant issued           40,000,000          
Warrant exercise price           $ 0.001          
Preferred stock value $ 1               $ 1   $ 1
Preferred Stock shares outstanding 986               986   1,050
Dividends payable $ 97,814               $ 97,814   $ 52,944
Serie d prefrred stock               $ 1,758,224      
Interest expense               644,411      
Series D Preferred Stock [Member] | Additional Paid-in Capital [Member]                      
Class of Stock [Line Items]                      
Reclassified Series d prefrred stock               $ 1,015,999      
Series D Preferred Stock [Member] | GHS Investments, LLC [Member]                      
Class of Stock [Line Items]                      
Number of common stock issue     250 250 150 400          
Proceeds from issuance of convertible preferred stock     $ 250,000 $ 237,500 $ 146,500            
Warrant issued         1,500,000            
Warrant exercise price         $ 0.001            
Conversion of shares 19 45             19    
Preferred stock value $ 22,800 $ 54,000             $ 22,800    
Prefered Stock Convertible shares 38,000,000 36,000,000             38,000,000    
Conversion Price per share $ 0.0006 $ 0.0015             $ 0.0006    
XML 48 R35.htm IDEA: XBRL DOCUMENT v3.22.2.2
Stockholders’ Equity (Deficit) (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jan. 31, 2022
Aug. 20, 2021
Jul. 14, 2021
May 12, 2021
Apr. 08, 2021
Jun. 30, 2021
Mar. 31, 2021
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Class of Stock [Line Items]                          
Converted value                       $ 74,000
Number of common stock issue               140,000,000          
Personnel costs                 $ 46,407   $ 93,121 $ 160,401 $ 1,389,121
Debentures [Member]                          
Class of Stock [Line Items]                          
Debt conversion, shares issued                       84,325,397 137,987,777
Debt conversion, shares issued value                       $ 50,000 $ 495,247
Board Members [Member]                          
Class of Stock [Line Items]                          
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Personnel costs               $ 961,666          
Employees and Consultants [Member]                          
Class of Stock [Line Items]                          
Number of common stock issue             11,956,004 31,834,386          
Number of common stock issue, value             $ 204,364 $ 236,448          
Common Stock [Member]                          
Class of Stock [Line Items]                          
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Auctus [Member]                          
Class of Stock [Line Items]                          
Warrants exercised                       140,966,300  
Shares issued for exercise of warrants                         32,142,857
Series D Preferred Stock [Member] | GHS Investments, LLC [Member]                          
Class of Stock [Line Items]                          
Preferred stock shares issuable 38,000,000 36,000,000             38,000,000     38,000,000  
Converted value $ 57,000 $ 54,000                      
Preferred stock, convertible, conversion price $ 0.0006 $ 0.0015             $ 0.0006     $ 0.0006  
Number of common stock issue     250 250 150 400              
Series D Preferred Stock [Member] | GHS Investments, LLC [Member] | Common Stock [Member]                          
Class of Stock [Line Items]                          
Preferred stock shares issuable 19 45             19     19  
Series C Preferred Stock [Member] | Pride [Member]                          
Class of Stock [Line Items]                          
Number of shares converted                         53,000
Conversion of stock, shares issued                         53,000,000
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Options and Warrants (Details Narrative) - $ / shares
6 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Warrants outstanding 28,333,333 174,058,782
Warrant exercise price $ 0.01 $ 0.02
Auctus [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Exercise of warrants, shares 140,966,300  
Two Thousand Twelve Equity Incentive Plan [Member]    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
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Related Party Transactions (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Feb. 28, 2022
Related Party Transaction [Line Items]              
Notes payable to related party   $ 1,800   $ 1,800   $ 1,800 $ 70,000
Interest rate   2.00%   2.00%   2.00%  
Common shares issued for cash, shares 140,000,000            
Personnel costs   $ 46,407 $ 93,121 $ 160,401 $ 1,389,121    
Conversion of accrued consulting fees into common shares       338,608    
Fund expenses   100,000    
Other receivables   0   0      
Procure AMLLC [Member]              
Related Party Transaction [Line Items]              
Receivables, net, current           $ 100,000  
Custodian [Member]              
Related Party Transaction [Line Items]              
Receivables, net, current           305,000  
Fund expenses       100,000   305,000  
Officers and Executive Director [Member]              
Related Party Transaction [Line Items]              
Accrued salaries   522,804   522,804   472,804  
Chief Operating Officer [Member]              
Related Party Transaction [Line Items]              
Common shares issued for cash, shares 200,000,000            
Number of shares issued, value $ 160,000            
Seven Board Members [Member]              
Related Party Transaction [Line Items]              
Common shares issued for cash, shares 20,000,000            
Personnel costs $ 961,666            
Conversion of accrued consulting fees into common shares $ 138,334            
Officers And Board Members [Member]              
Related Party Transaction [Line Items]              
Accounts payable to related parties   $ 168,308   $ 168,308   $ 102,808  
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DE 80-0671280 2435 Dixie Highway Wilton Manors FL 33305 (858) 577-1746 Yes Yes Non-accelerated Filer true false false 1179890617 This Amendment No. 1 to Form 10-Q, or this Amendment, amends the Quarterly Report on Form 10-Q for the three-and six months periods ended June 30, 2022 that we originally filed with the Securities and Exchange Commission, or the Commission, on October 17, 2022 or the Original Filing. 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(formerly LifeApps Brands Inc.), including its subsidiaries.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 25, 2019, we acquired LGBT Loyalty LLC, a New York limited liability company, with the goal of creating the first LGBTQ Loyalty Preference Index ETF (the “Index ETF”) to provide the LGBTQ community with the power to influence the allocation of capital within a financial Index ETF based upon LGBTQ consumer preferences. The Index ETF was intended to link the growing economic influence of the LGBTQ community and their allies with many of the top Fortune 500 companies that support and implement diversity, inclusion and equality policies within their organizations. The incorporation of diversity and inclusion in a company’s recruitment and human resource policies has become a key concern to investors as part of their growing focus on ESG allocations. Our data and analytics unequivocally reinforce that corporations that have embraced diversity and inclusion policies within their corporate culture perform at a higher level financially than their peers. This includes advancing a more invigorated workforce that attracts and retains the best talent. Innovation and agility have been identified as great benefits of diversity, and there is an increasing awareness of what has become known as ‘the power of difference’.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October 30, 2019, through our wholly-owned subsidiary Loyalty Preference Index, Inc. (“LPI”) and our strategically aligned partnerships with crowd-sourced data and analytic providers, we launched the LGBTQ100 ESG Index. This Index integrates LGBTQ community survey data into the methodology for a benchmark listing of the nation’s highest financially performing large-cap publicly listed corporations that our respondents believe are most committed to advancing equality. LPI is the index provider for the LGBTQ + ESG100 ETF; LGBTQ Loyalty was the Sponsor for the prospectus that was filed by the licensed Fund Adviser ProcureAM, and was approved by the Securities and Exchange Commission (“SEC”) in early January 2020. The LGBTQ + ESG100 ETF (the “Fund”) sought to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index. In late 2020, LPI was renamed to Advancing Equality Preference, Inc.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">On March 25, 2022, ProcureAM, LLC (“Adviser”), the adviser to the Fund, after consultation with the Company, the sponsor of the ETF, determined that the Fund should be closed. Based upon a recommendation by the Adviser, the Board of Trustees of Procure ETF Trust I (the “Trust”) approved a Plan of Liquidation for the Fund under which the Fund would be liquidated on or about April 28, 2022 (the “Liquidation Date”). The Liquidation Date may be changed without notice at the discretion of the officers of the Trust. Beginning when the Fund commences the liquidation of its portfolio, the Fund will not pursue its investment objectives or, with certain exceptions, engage in normal business activities, and the Fund may hold cash and securities that may not be consistent with the Fund’s investment objective and strategy, which may adversely affect Fund performance. On April 28, 2022, the Company effectuated the termination and liquidation of the Fund pursuant to the terms of a Plan of Liquidation. As of this date, the Fund has ceased operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_802_eus-gaap--ErrorCorrectionTextBlock_z00Dr1oQm3h5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2. <span id="xdx_828_zb11QQA11aY1">Correction of Previously Issued Financial Statements</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subsequent to the issuance of its Quarterly Report on SEC Form 10-Q for the three and six months ended June 30, 2022, the Company discovered several errors in its accounts on its condensed consolidated balance sheets and statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_891_eus-gaap--ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock_zYkRlFAHmIA2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The tables below reflect the effect of restatement on the Company’s financial statements for the three and six month periods ending June 30, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zNidnD6OzTJh" style="display: none">Schedule of Restatement of Company’s Financial Statements</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_znlYRQhbEg05" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zzWXgV2Km8E" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20220630_zqEOVaRbuGg2" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_zSxs9HOzNQZ9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,269</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,665</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">12,934</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Assets_iI_zzKnXljlMTYa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">59,886</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">61,551</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccountsPayableCurrent_iI_zeQt9MLEVUt8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accounts payable</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,386,797</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">21,979</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,408,776</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AccruedSalariesCurrent_iI_zfTjznBz6416" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued salaries and consulting fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">743,321</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(20,314</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">723,007</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DerivativeLiabilitiesCurrent_iI_z0B5hMTjHgd7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Derivative liability on convertible notes payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,769,066</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,369</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,781,435</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--Liabilities_iI_z4xr1C5Ohb22" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,262,606</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,034</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,276,640</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CommonStockValue_iI_zJYXIL12fVd9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,132,007</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,132,010</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AdditionalPaidInCapital_iI_zaJDzLilIkk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Additional paid-in capital</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,549,666</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,549,667</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RetainedEarningsAccumulatedDeficit_iI_zxB4s3hCl6ce" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accumulated deficit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,884,446</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12,373</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,896,819</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--StockholdersEquity_iI_z0XbhzMffpi4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total stockholders’ equity (deficit)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,202,720</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12,369</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,215,089</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--LiabilitiesAndStockholdersEquity_iI_zn5MZdqkpZV5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total liabilities and stockholders’ equity (deficit)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">59,886</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">61,551</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49A_20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_z2e4NWeZmsyg" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zhpC7rlYNoKh" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220101__20220630_za8QQZdfF9V8" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--GeneralAndAdministrativeExpense_zVT40keIXfm5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">General and administrative</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">39,453</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,892</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">51,345</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingExpenses_zxxsDH4Owgpa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total operating expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">719,974</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,892</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">731,866</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InterestExpense_iN_di_z9inHY6yIzg6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,525,116</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(634</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,525,750</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DerivativeGainLossOnDerivativeNet_z7bKttUn6a97" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in derivative liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,105,465</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(47,759</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,153,224</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLoss_zk8OL2ABq9k3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(3,350,555</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(60,285</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(3,410,840</td><td style="text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49A_20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zet6OMDJSHvd" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_z4NLejPiVuN5" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220101__20220630_zG3w15Ot7uth" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--NetCashProvidedByUsedInOperatingActivities_zLir5riVfShh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Net cash used in operating activities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(237,079</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,665</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(235,414</td><td style="width: 1%; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zJY8UX8Nqzhk" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zshgwlpoG8Hj" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20220401__20220630_zgL1lNG8bMFj" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_ecustom--DebentureConversions_zv4xB6pcg86h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Debenture conversions</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">114,040</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">12,522</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">126,562</td><td style="width: 1%; text-align: left"> </td></tr> </table> <p id="xdx_8AB_zhKbJ6G7tv9d" style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Furthermore, in the three months ended March 31, 2022, the deemed dividends related to Preferred Stock conversions were incorrectly recorded (instead of debiting shareholder deficit and crediting additional paid in capital, it did the opposite). They have been corrected in the second quarter. As the effect is a reclass within equity, we consider the change to be qualitatively immaterial.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p id="xdx_891_eus-gaap--ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock_zYkRlFAHmIA2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The tables below reflect the effect of restatement on the Company’s financial statements for the three and six month periods ending June 30, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zNidnD6OzTJh" style="display: none">Schedule of Restatement of Company’s Financial Statements</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_znlYRQhbEg05" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49C_20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zzWXgV2Km8E" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_491_20220630_zqEOVaRbuGg2" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_zSxs9HOzNQZ9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,269</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,665</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">12,934</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Assets_iI_zzKnXljlMTYa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">59,886</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">61,551</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AccountsPayableCurrent_iI_zeQt9MLEVUt8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accounts payable</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,386,797</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">21,979</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,408,776</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AccruedSalariesCurrent_iI_zfTjznBz6416" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Accrued salaries and consulting fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">743,321</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(20,314</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">723,007</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DerivativeLiabilitiesCurrent_iI_z0B5hMTjHgd7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Derivative liability on convertible notes payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,769,066</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,369</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,781,435</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--Liabilities_iI_z4xr1C5Ohb22" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,262,606</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,034</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,276,640</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CommonStockValue_iI_zJYXIL12fVd9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,132,007</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,132,010</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AdditionalPaidInCapital_iI_zaJDzLilIkk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Additional paid-in capital</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,549,666</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">12,549,667</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RetainedEarningsAccumulatedDeficit_iI_zxB4s3hCl6ce" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accumulated deficit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,884,446</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12,373</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(23,896,819</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--StockholdersEquity_iI_z0XbhzMffpi4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total stockholders’ equity (deficit)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,202,720</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(12,369</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,215,089</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--LiabilitiesAndStockholdersEquity_iI_zn5MZdqkpZV5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total liabilities and stockholders’ equity (deficit)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">59,886</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,665</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">61,551</td><td style="text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49A_20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_z2e4NWeZmsyg" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zhpC7rlYNoKh" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220101__20220630_za8QQZdfF9V8" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--GeneralAndAdministrativeExpense_zVT40keIXfm5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">General and administrative</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">39,453</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">11,892</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">51,345</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingExpenses_zxxsDH4Owgpa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total operating expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">719,974</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,892</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">731,866</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InterestExpense_iN_di_z9inHY6yIzg6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Interest expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,525,116</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(634</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,525,750</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DerivativeGainLossOnDerivativeNet_z7bKttUn6a97" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in derivative liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,105,465</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(47,759</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,153,224</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--NetIncomeLoss_zk8OL2ABq9k3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(3,350,555</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(60,285</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(3,410,840</td><td style="text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49A_20220101__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zet6OMDJSHvd" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20220101__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_z4NLejPiVuN5" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220101__20220630_zG3w15Ot7uth" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--NetCashProvidedByUsedInOperatingActivities_zLir5riVfShh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Net cash used in operating activities</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(237,079</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,665</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(235,414</td><td style="width: 1%; text-align: left">)</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_498_20220401__20220630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zJY8UX8Nqzhk" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20220401__20220630__srt--RestatementAxis__srt--RestatementAdjustmentMember_zshgwlpoG8Hj" style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_493_20220401__20220630_zgL1lNG8bMFj" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended June 30, 2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Original</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Adjustment</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As Restated</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_ecustom--DebentureConversions_zv4xB6pcg86h" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">Debenture conversions</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">114,040</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">12,522</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">126,562</td><td style="width: 1%; text-align: left"> </td></tr> </table> 11269 1665 12934 59886 1665 61551 1386797 21979 1408776 743321 -20314 723007 2769066 12369 2781435 10262606 14034 10276640 1132007 3 1132010 12549666 1 12549667 -23884446 -12373 -23896819 -10202720 -12369 -10215089 59886 1665 61551 39453 11892 51345 719974 11892 731866 1525116 634 1525750 -1105465 -47759 -1153224 -3350555 -60285 -3410840 -237079 1665 -235414 114040 12522 126562 <p id="xdx_80C_eus-gaap--SignificantAccountingPoliciesTextBlock_zdofmKLVwrYg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3. <span id="xdx_82D_zQeDDco7cp3g">Summary of Significant Accounting Policies</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_ecustom--GoingConcernPolicyTextBlock_zq7fN5tGS7ac" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86C_z0P8y6zgVty5">Going Concern</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“US GAAP”), which contemplates our continuation as a going concern. We have incurred losses to date of $<span id="xdx_90E_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pp0p0_di_c20220630_z6QmdKCpDlM" title="Retained earnings accumulated deficit">23,896,819</span> and have negative working capital of $<span id="xdx_905_ecustom--WorkingCapital_iNI_pp0p0_di_c20220630_zRA29TgEMKl4" title="Working capital">10,255,436</span> as of June 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third-party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84A_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zAoZ6kpOZKgk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86A_z9ZHF6TuX8b6">Basis of Presentation</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2022. Certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84E_eus-gaap--ComparabilityOfPriorYearFinancialData_zZUNX1bqTeli" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_861_za9gsubNNEQk">Prior Period Adjustments</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the first quarter of 2022, we determined that the Series D preferred stock included a substantive conversion option, and therefore should be equity classified. Previously, the amount was included as a current liability. We have reclassified the amount to Series D preferred stock equity and additional paid-in capital on the consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2021. We do not believe the change to be qualitatively material to the consolidated financial statements as of December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--ConsolidationPolicyTextBlock_zJsxtjH0Vhrb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_z873n92JYJw1">Principles of Consolidation</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, LGBTQ Loyalty, LLC, and Advancing Equality Preference, Inc. All material inter-company transactions and balances have been eliminated in consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_846_eus-gaap--UseOfEstimates_zwXj5m6nHlYl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zU5j4a8Kcylb">Use of Estimates</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z0H74ldiKQmk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_z7wDREuomSDe">Fair Value Measurements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights and derivative liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our financial instruments consist of cash, other current assets, accounts payables, accruals, and notes payable. The carrying values of these instruments approximate fair value because of the short-term maturities. The fair value of the Company’s convertible debentures and promissory notes approximates their carrying values as the underlying imputed interest rates approximates the estimated current market rate for similar instruments. The derivative is measured as a Level 3 instrument due to the various inputs which requires significant management judgment. Refer to Note 6 for detail.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89B_eus-gaap--ScheduleOfDerivativeInstrumentsTextBlock_zOByLHDG5och" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table is a summary of our financial instruments measured at fair value:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zUfTchYI53Df" style="display: none">Schedule of Financial Instruments at Fair Value</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="14" style="font-weight: bold; text-align: center">Fair Value Measurements</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">as of June 30, 2022:</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 36%; text-align: left; padding-bottom: 1.5pt">Derivative liability on convertible notes payable and preferred stock</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zrRtVKf5LQm4" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0868">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zzAvs80NGOY8" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0870">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zTuJ3QLkdNLj" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">2,781,435</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20220630_zwDjhUWGD5Y4" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">2,781,435</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zP5Nm50uVoC8" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0876">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zwAR9rbKe20j" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0878">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zj0mJ66eey7j" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20220630_zuusW3RuCXga" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="14" style="font-weight: bold; text-align: center">Fair Value Measurements</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">as of December 31, 2021:</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 36%; text-align: left; padding-bottom: 1.5pt">Derivative liability on convertible notes payable</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zaka1yTfKDjg" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0884">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zPnXFDyi84Sf" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0886">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z2uGxru8ixCk" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">1,398,127</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20211231_zB7zVKNcncBl" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">1,398,127</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z37z6g3uooY3" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0892">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zd74PVOojOZg" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0894">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_znzfeOhBT888" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">1,398,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20211231_zV6WRnxMMCH9" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">1,398,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_zlvsN7t4U6ad" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Refer to Note 7 for detail on the unobservable inputs used in the fair value of the derivative liability.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--EarningsPerSharePolicyTextBlock_zT1m4gkxHGl9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zklEtCq8zyoa">Earnings per Share</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We calculate earnings per share in accordance with ASC Topic 260 <i>Earnings Per Share</i>, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants. The diluted earnings per share were not calculated because we recorded net losses for the three and six months ended June 30, 2022 and 2021, and the outstanding stock options and warrants are anti-dilutive. For the three and six months ended June 30, 2022 and 2021, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:</span></p> <p id="xdx_892_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zFgtHBhKLY7g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_z1pzVypdExCl" style="display: none">Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"/></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20220101__20220630_zel4cSWo3tN4" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20210101__20210630_zzwh35PZ1R1k" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Six Months Ended</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionOutstandingMember_zrewrGP1vEf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Stock options outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0904">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,800,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_zLHfVTQYIAPh" style="vertical-align: bottom; background-color: White"> <td>Warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,333,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">204,946,057</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ShareToBeIssuedUponConversionOfNotesMember_zDS3q9Ui9ea3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares to be issued upon conversion of notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,170,908,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">203,651,096</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesDPreferredStockMember_zJhP9pfGDpOg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: left">Series D preferred stock</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,010,000,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">67,826</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zmI5lARR4jec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; font-size: 11pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Anti-dilutive securities</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8,209,241,900</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">410,464,979</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zTI5X9LcmMFc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_zThGZ0uPOc0i">Recent Pronouncements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.</span></p> <p id="xdx_858_zpIE7VKsFiWg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_ecustom--GoingConcernPolicyTextBlock_zq7fN5tGS7ac" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86C_z0P8y6zgVty5">Going Concern</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“US GAAP”), which contemplates our continuation as a going concern. We have incurred losses to date of $<span id="xdx_90E_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pp0p0_di_c20220630_z6QmdKCpDlM" title="Retained earnings accumulated deficit">23,896,819</span> and have negative working capital of $<span id="xdx_905_ecustom--WorkingCapital_iNI_pp0p0_di_c20220630_zRA29TgEMKl4" title="Working capital">10,255,436</span> as of June 30, 2022. To date we have funded our operations through advances from a related party, issuances of convertible debt, and the sale of common stock, preferred stock and warrants. We intend to raise additional funding through third-party equity or debt financing. There is no certainty that funding will be available as needed. These factors raise substantial doubt about our ability to continue operating as a going concern. Our ability to continue our operations as a going concern, realize the carrying value of our assets, and discharge our liabilities in the normal course of business is dependent upon our ability to raise capital sufficient to fund our commitments and ongoing losses, and ultimately generate profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> -23896819 -10255436 <p id="xdx_84A_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zAoZ6kpOZKgk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86A_z9ZHF6TuX8b6">Basis of Presentation</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These condensed consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our balance sheets, operating results, and cash flows for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for fiscal year 2022. Certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The unaudited condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84E_eus-gaap--ComparabilityOfPriorYearFinancialData_zZUNX1bqTeli" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_861_za9gsubNNEQk">Prior Period Adjustments</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the first quarter of 2022, we determined that the Series D preferred stock included a substantive conversion option, and therefore should be equity classified. Previously, the amount was included as a current liability. We have reclassified the amount to Series D preferred stock equity and additional paid-in capital on the consolidated balance sheet and consolidated statement of stockholders’ equity as of December 31, 2021. We do not believe the change to be qualitatively material to the consolidated financial statements as of December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--ConsolidationPolicyTextBlock_zJsxtjH0Vhrb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_z873n92JYJw1">Principles of Consolidation</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries, LGBTQ Loyalty, LLC, and Advancing Equality Preference, Inc. All material inter-company transactions and balances have been eliminated in consolidation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_846_eus-gaap--UseOfEstimates_zwXj5m6nHlYl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zU5j4a8Kcylb">Use of Estimates</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z0H74ldiKQmk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_z7wDREuomSDe">Fair Value Measurements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level 3 – Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights and derivative liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our financial instruments consist of cash, other current assets, accounts payables, accruals, and notes payable. The carrying values of these instruments approximate fair value because of the short-term maturities. The fair value of the Company’s convertible debentures and promissory notes approximates their carrying values as the underlying imputed interest rates approximates the estimated current market rate for similar instruments. The derivative is measured as a Level 3 instrument due to the various inputs which requires significant management judgment. Refer to Note 6 for detail.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89B_eus-gaap--ScheduleOfDerivativeInstrumentsTextBlock_zOByLHDG5och" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table is a summary of our financial instruments measured at fair value:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zUfTchYI53Df" style="display: none">Schedule of Financial Instruments at Fair Value</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="14" style="font-weight: bold; text-align: center">Fair Value Measurements</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">as of June 30, 2022:</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 36%; text-align: left; padding-bottom: 1.5pt">Derivative liability on convertible notes payable and preferred stock</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zrRtVKf5LQm4" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0868">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zzAvs80NGOY8" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0870">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zTuJ3QLkdNLj" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">2,781,435</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20220630_zwDjhUWGD5Y4" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">2,781,435</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zP5Nm50uVoC8" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0876">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zwAR9rbKe20j" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0878">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zj0mJ66eey7j" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20220630_zuusW3RuCXga" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="14" style="font-weight: bold; text-align: center">Fair Value Measurements</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">as of December 31, 2021:</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 36%; text-align: left; padding-bottom: 1.5pt">Derivative liability on convertible notes payable</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zaka1yTfKDjg" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0884">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zPnXFDyi84Sf" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0886">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z2uGxru8ixCk" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">1,398,127</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20211231_zB7zVKNcncBl" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">1,398,127</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z37z6g3uooY3" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0892">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zd74PVOojOZg" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0894">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_znzfeOhBT888" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">1,398,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20211231_zV6WRnxMMCH9" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">1,398,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_zlvsN7t4U6ad" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Refer to Note 7 for detail on the unobservable inputs used in the fair value of the derivative liability.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89B_eus-gaap--ScheduleOfDerivativeInstrumentsTextBlock_zOByLHDG5och" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following table is a summary of our financial instruments measured at fair value:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B4_zUfTchYI53Df" style="display: none">Schedule of Financial Instruments at Fair Value</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="14" style="font-weight: bold; text-align: center">Fair Value Measurements</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">as of June 30, 2022:</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 36%; text-align: left; padding-bottom: 1.5pt">Derivative liability on convertible notes payable and preferred stock</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zrRtVKf5LQm4" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0868">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zzAvs80NGOY8" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0870">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zTuJ3QLkdNLj" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">2,781,435</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20220630_zwDjhUWGD5Y4" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">2,781,435</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zP5Nm50uVoC8" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0876">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zwAR9rbKe20j" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0878">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20220630__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zj0mJ66eey7j" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20220630_zuusW3RuCXga" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold"> </td> <td colspan="14" style="font-weight: bold; text-align: center">Fair Value Measurements</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">as of December 31, 2021:</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 36%; text-align: left; padding-bottom: 1.5pt">Derivative liability on convertible notes payable</td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zaka1yTfKDjg" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0884">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesCurrent_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zPnXFDyi84Sf" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable"><span style="-sec-ix-hidden: xdx2ixbrl0886">-</span></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z2uGxru8ixCk" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">1,398,127</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--DerivativeLiabilitiesCurrent_iI_pp0p0_c20211231_zB7zVKNcncBl" style="border-bottom: Black 1.5pt solid; width: 12%; text-align: right" title="Derivative liability on convertible notes payable">1,398,127</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z37z6g3uooY3" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0892">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pdp0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zd74PVOojOZg" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value"><span style="-sec-ix-hidden: xdx2ixbrl0894">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20211231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_znzfeOhBT888" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">1,398,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeInstrumentsAndHedgesLiabilities_iI_pp0p0_c20211231_zV6WRnxMMCH9" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative instruments at fair value">1,398,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2781435 2781435 2781435 2781435 1398127 1398127 1398127 1398127 <p id="xdx_842_eus-gaap--EarningsPerSharePolicyTextBlock_zT1m4gkxHGl9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zklEtCq8zyoa">Earnings per Share</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We calculate earnings per share in accordance with ASC Topic 260 <i>Earnings Per Share</i>, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the fiscal year. Diluted earnings per share represent basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants. The diluted earnings per share were not calculated because we recorded net losses for the three and six months ended June 30, 2022 and 2021, and the outstanding stock options and warrants are anti-dilutive. For the three and six months ended June 30, 2022 and 2021, the following number of potentially dilutive shares have been excluded from diluted net loss since such inclusion would be anti-dilutive:</span></p> <p id="xdx_892_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zFgtHBhKLY7g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_z1pzVypdExCl" style="display: none">Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"/></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20220101__20220630_zel4cSWo3tN4" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20210101__20210630_zzwh35PZ1R1k" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Six Months Ended</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionOutstandingMember_zrewrGP1vEf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Stock options outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0904">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,800,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_zLHfVTQYIAPh" style="vertical-align: bottom; background-color: White"> <td>Warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,333,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">204,946,057</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ShareToBeIssuedUponConversionOfNotesMember_zDS3q9Ui9ea3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares to be issued upon conversion of notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,170,908,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">203,651,096</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesDPreferredStockMember_zJhP9pfGDpOg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: left">Series D preferred stock</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,010,000,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">67,826</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zmI5lARR4jec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; font-size: 11pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Anti-dilutive securities</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8,209,241,900</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">410,464,979</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zTI5X9LcmMFc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_zThGZ0uPOc0i">Recent Pronouncements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.</span></p> <p id="xdx_858_zpIE7VKsFiWg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_892_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zFgtHBhKLY7g" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B3_z1pzVypdExCl" style="display: none">Schedule of Anti-dilutive Securities Excluded from Diluted Net Loss</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"/></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20220101__20220630_zel4cSWo3tN4" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" id="xdx_49B_20210101__20210630_zzwh35PZ1R1k" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Six Months Ended</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center; font-size: 11pt"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionOutstandingMember_zrewrGP1vEf9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Stock options outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0904">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,800,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--WarrantsMember_zLHfVTQYIAPh" style="vertical-align: bottom; background-color: White"> <td>Warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,333,333</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">204,946,057</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ShareToBeIssuedUponConversionOfNotesMember_zDS3q9Ui9ea3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Shares to be issued upon conversion of notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">6,170,908,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">203,651,096</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesDPreferredStockMember_zJhP9pfGDpOg" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt; text-align: left">Series D preferred stock</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,010,000,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">67,826</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_zmI5lARR4jec" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; font-size: 11pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Anti-dilutive securities</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">8,209,241,900</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">410,464,979</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 1800000 28333333 204946057 6170908567 203651096 2010000000 67826 8209241900 410464979 <p id="xdx_840_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zTI5X9LcmMFc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_863_zThGZ0uPOc0i">Recent Pronouncements</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company has elected to early adopt this ASU in the first quarter of 2022 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.</span></p> <p id="xdx_804_eus-gaap--IntangibleAssetsDisclosureTextBlock_z4QDfE09aQpg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 4. <span id="xdx_82C_z0b1yxhcqk2l">Intangible Assets</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company capitalizes costs pertaining to the development of the LGBTQ100 ESG Index website. The Company began amortizing these costs upon the launch of the index, and will amortize the costs over a three-year useful life.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At June 30, 2022 and December 31, 2021, net intangible assets were $<span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pp0p0_c20220630_zKijVkTFGvia" title="Finite lived intangible assets, net">40,347</span> and $<span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pp0p0_c20211231_zC98QgwrNu05" title="Finite lived intangible assets, net">53,243</span>, respectively. Amortization expense was $<span id="xdx_90B_eus-gaap--AmortizationOfIntangibleAssets_pp0p0_c20220101__20220630_zqBOj7YLAg15" title="Amortization of intangible assets"><span id="xdx_90D_eus-gaap--AmortizationOfIntangibleAssets_pp0p0_c20210101__20210630_zW8idrwW36xi" title="Amortization of intangible assets">12,896</span></span> for both the six months ended June 30, 2022 and 2021, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 40347 53243 12896 12896 <p id="xdx_80C_eus-gaap--DebtDisclosureTextBlock_zBEtd6YRZPre" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5. <span id="xdx_82C_zgPXKQi1F3ud">Notes Payable</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022 and December 31, 2021, the Company has a note payable outstanding in the amount of $<span id="xdx_908_eus-gaap--NotesPayable_iI_pp0p0_c20220630__us-gaap--DebtInstrumentAxis__custom--NotePaybleMember_zVhilV4kpEL3" title="Note payable outsanding"><span id="xdx_909_eus-gaap--NotesPayable_iI_pp0p0_c20211231__us-gaap--DebtInstrumentAxis__custom--NotePaybleMember_z7VxWYVaPiy1" title="Note payable outsanding">1,986</span></span>. The note is past due at June 30, 2022 and is, therefore, in default. The note accrues interest at a rate of <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20220630_zmJ5zofn8uG7" title="Debt instrument interest rate">2</span>% per annum.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In December 2019, the Company issued a promissory note to Pride Partners LLC (“Pride”) for $<span id="xdx_905_eus-gaap--ProceedsFromNotesPayable_pp0p0_c20191201__20191231__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--PridePartnersLlcMember_zJZmYqWBjili" title="Proceeds from notes payable">75,000</span>. The note is secured, accrues interest at a rate of <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20191231__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--PridePartnersLlcMember_zwh5SwVc2YG4" title="Debt instrument interest rate">10</span>% per annum, and matured on June 20, 2020. As of June 30, 2022, the full principal amount was outstanding and in default.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In 2019, the Company issued a promissory note for $<span id="xdx_909_eus-gaap--ProceedsFromNotesPayable_pp0p0_c20190101__20191231__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember_zHHJ9D99YE5f" title="Proceeds from notes payable">50,000</span>. The note includes $<span id="xdx_90B_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_pp0p0_c20191231__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember_zHTRfq3UPEXf" title="Note original issue of discount">2,500</span> in original issue discount. The noted is unsecured and matured in December 2019. As of June 30, 2022, the full principal amount was outstanding an in default.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In April 2022, Advancing Equality Preference entered into a loan payable for $<span id="xdx_900_eus-gaap--LoansPayable_iI_c20220430_zMG0juGchGo7" title="Loans payable">130,000</span> for proceeds of $<span id="xdx_907_eus-gaap--ProceedsFromNotesPayable_c20220401__20220430_z15E0DM1w7Lj" title="Net proceeds loan payable">100,000</span>. The loan matured on <span id="xdx_90C_eus-gaap--DebtInstrumentMaturityDate_c20220401__20220430_zKMY4jHJMihk" title="Loan matured date">June 30, 2022</span> and is currently in default.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 1986 1986 0.02 75000 0.10 50000 2500 130000 100000 2022-06-30 <p id="xdx_80F_eus-gaap--ShortTermDebtTextBlock_zoUBYNy19Hfh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6. <span id="xdx_828_zihyb5JvTzLg">Convertible Notes Payable</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2022 and 2021, the Company recorded amortization of debt discount and original issue discount of $<span id="xdx_908_eus-gaap--AmortizationOfFinancingCostsAndDiscounts_c20220101__20220630__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--SixthStreetLendingLLCMember_zuUxyafkCFe5" title="Amortization of debt discount and original issue discount">109,690</span> and $<span id="xdx_909_eus-gaap--AmortizationOfFinancingCostsAndDiscounts_c20210101__20210630__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--SixthStreetLendingLLCMember_z8Wa5H9cKn6c" title="Amortization of debt discount and original issue discount">582,631</span>, respectively, for all convertible debentures. This amount is included in interest expense in our consolidated statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company did not file its Form 10-Q for the quarter ended March 31, 2022 on a timely basis. As a result, several default provisions were triggered with the Company’s outstanding debentures. The Company recorded an additional $<span id="xdx_90D_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iI_c20220331_zMFy3kXj0Ndc" title="Provision for doubtful debt">374,125</span> in additional principal owed upon this default provision. Accordingly, the Company recorded $<span id="xdx_903_eus-gaap--InterestExpense_c20220101__20220331__us-gaap--ShortTermDebtTypeAxis__us-gaap--ConvertibleNotesPayableMember_zXMscak43czk">374,125</span> in interest expense in the consolidated statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_895_eus-gaap--ConvertibleDebtTableTextBlock_zQ3LLgbstjN6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is a summary of the activity of the convertible notes payable and convertible debenture for the six months ended June 30, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BF_zpDyGqSDFhY4" style="display: none">Schedule of Convertible Notes Payable and Convertible Debentures Activity</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Convertible</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Debenture</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 81%">Balance as of December 31, 2021</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--ConvertibleNotesPayableCurrent_iS_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zUizgF44cxqb" style="font: 10pt Times New Roman, Times, Serif; width: 15%; text-align: right" title="Beginning balance">2,195,145</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left">Convertible debenture - debt discount</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_ecustom--ConvertibleDebentureDebtDiscount_iN_pp0p0_di_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zP0pvNpTOFa2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Convertible debenture - debt discount">(213,932</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left">Additional principal per default provisions</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iS_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zakkDHJ4Gn9e" style="font: 10pt Times New Roman, Times, Serif; text-align: right">374,125</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left">Amortization of debt discount and original issue discount</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--AmortizationOfFinancingCostsAndDiscounts_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_z6ghObs1n0b9" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Amortization of debt discount and original issue discount">109,690</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; padding-bottom: 1.5pt; text-align: left">Conversion to common stock, net of discount</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_983_eus-gaap--DebtConversionConvertedInstrumentAmount1_iN_pp0p0_di_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zN78reVacgA3" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Conversion to common stock, net of discount">(50,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Balance as of June 30, 2022</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98B_eus-gaap--ConvertibleNotesPayableCurrent_iE_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_znFhbbwfvUv1" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Ending balance">2,415,028</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p id="xdx_89D_ecustom--ScheduleOfBalanceConvertibleDebentureOutstandingTableTextBlock_zO4FWvFdN7bd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span id="xdx_8B9_zcvwhLjq8Sjj" style="display: none">Schedule of Convertible Debenture Outstanding</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20220630_zWi2XpD9B4u" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20211231_zjqBiSRTObA7" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_maCNPCzWEy_zeOz8qdwPqAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Principal amount outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,545,152</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,221,027</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OriginalDebtDiscount_iI_pp0p0_maCNPCzWEy_zajXTmE3w95d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Unamortized original debt discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(123,421</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0981">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_pp0p0_di_msCNPCzWEy_zamQFIfS2BKl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Unamortized original issue discount</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,703</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(25,882</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ConvertibleNotesPayableCurrent_iTI_pp0p0_mtCNPCzWEy_zdE1HKwQRZd2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,415,028</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,195,145</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A6_zcMuwPbL1eNf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022 and December 31, 2021, the EMA Note was in default and the parity value of the EMA Note was determined to be $<span id="xdx_906_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20220630__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--EMAFinancialLLCMember_z7Llpg9qjmrb" title="Debt principal amount"><span id="xdx_900_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20211231__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--EMAFinancialLLCMember_z5DmP0l2aYM6" title="Debt principal amount">434,687</span></span>. In 2021, the Company issued <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20210101__20211231__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__dei--LegalEntityAxis__custom--EMAFinancialLLCMember_zkQsyVQV8SBj" title="Stock issued during period shares conversion of units">60,714,000</span> shares of common stock pursuant to conversions of outstanding principal.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 109690 582631 374125 374125 <p id="xdx_895_eus-gaap--ConvertibleDebtTableTextBlock_zQ3LLgbstjN6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is a summary of the activity of the convertible notes payable and convertible debenture for the six months ended June 30, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BF_zpDyGqSDFhY4" style="display: none">Schedule of Convertible Notes Payable and Convertible Debentures Activity</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td> <td colspan="2" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Convertible</td><td style="font: bold 10pt Times New Roman, Times, Serif"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Debenture</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 81%">Balance as of December 31, 2021</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--ConvertibleNotesPayableCurrent_iS_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zUizgF44cxqb" style="font: 10pt Times New Roman, Times, Serif; width: 15%; text-align: right" title="Beginning balance">2,195,145</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left">Convertible debenture - debt discount</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_988_ecustom--ConvertibleDebentureDebtDiscount_iN_pp0p0_di_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zP0pvNpTOFa2" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Convertible debenture - debt discount">(213,932</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left">Additional principal per default provisions</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98F_eus-gaap--AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables_iS_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zakkDHJ4Gn9e" style="font: 10pt Times New Roman, Times, Serif; text-align: right">374,125</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; text-align: left">Amortization of debt discount and original issue discount</td><td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--AmortizationOfFinancingCostsAndDiscounts_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_z6ghObs1n0b9" style="font: 10pt Times New Roman, Times, Serif; text-align: right" title="Amortization of debt discount and original issue discount">109,690</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; padding-bottom: 1.5pt; text-align: left">Conversion to common stock, net of discount</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_983_eus-gaap--DebtConversionConvertedInstrumentAmount1_iN_pp0p0_di_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_zN78reVacgA3" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Conversion to common stock, net of discount">(50,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Balance as of June 30, 2022</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98B_eus-gaap--ConvertibleNotesPayableCurrent_iE_pp0p0_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebentureMember_znFhbbwfvUv1" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Ending balance">2,415,028</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p id="xdx_89D_ecustom--ScheduleOfBalanceConvertibleDebentureOutstandingTableTextBlock_zO4FWvFdN7bd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span id="xdx_8B9_zcvwhLjq8Sjj" style="display: none">Schedule of Convertible Debenture Outstanding</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20220630_zWi2XpD9B4u" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20211231_zjqBiSRTObA7" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_maCNPCzWEy_zeOz8qdwPqAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Principal amount outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,545,152</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,221,027</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OriginalDebtDiscount_iI_pp0p0_maCNPCzWEy_zajXTmE3w95d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Unamortized original debt discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(123,421</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0981">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_pp0p0_di_msCNPCzWEy_zamQFIfS2BKl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Unamortized original issue discount</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,703</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(25,882</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ConvertibleNotesPayableCurrent_iTI_pp0p0_mtCNPCzWEy_zdE1HKwQRZd2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,415,028</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,195,145</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2195145 213932 374125 109690 50000 2415028 <p id="xdx_89D_ecustom--ScheduleOfBalanceConvertibleDebentureOutstandingTableTextBlock_zO4FWvFdN7bd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following comprises the balance of the convertible debenture outstanding at June 30, 2022 and December 31, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span id="xdx_8B9_zcvwhLjq8Sjj" style="display: none">Schedule of Convertible Debenture Outstanding</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20220630_zWi2XpD9B4u" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_493_20211231_zjqBiSRTObA7" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_maCNPCzWEy_zeOz8qdwPqAj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Principal amount outstanding</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,545,152</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,221,027</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--OriginalDebtDiscount_iI_pp0p0_maCNPCzWEy_zajXTmE3w95d" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Less: Unamortized original debt discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(123,421</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0981">-</span></td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DebtInstrumentUnamortizedDiscountCurrent_iNI_pp0p0_di_msCNPCzWEy_zamQFIfS2BKl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: Unamortized original issue discount</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,703</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(25,882</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ConvertibleNotesPayableCurrent_iTI_pp0p0_mtCNPCzWEy_zdE1HKwQRZd2" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,415,028</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,195,145</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2545152 2221027 -123421 6703 25882 2415028 2195145 434687 434687 60714000 <p id="xdx_80C_eus-gaap--DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock_zmus87FQbcm4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7. <span id="xdx_824_zQVZxdsPmSZ7">Derivative Liability</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">We evaluated the terms of the conversion features of the debentures and related debenture warrants as noted above and below, in accordance with ASC Topic No. 815 - 40, <i>Derivatives and Hedging - Contracts in Entity’s Own Stock</i>, and determined they are indexed to the Company’s common stock and that the conversion features meet the definition of a liability. Therefore, we bifurcated the conversion feature and accounted for it as a separate derivative liability.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">To determine the fair value of our embedded derivatives, management evaluates assumptions regarding the probability of certain future events. Other factors used to determine fair value include our period end stock price, historical stock volatility, risk free interest rate and derivative term. The fair value recorded for the derivative liability varies from period to period. This variability may result in the actual derivative liability for a period either above or below the estimates recorded on our consolidated financial statements, resulting in significant fluctuations in other income (expense) because of the corresponding non-cash gain or loss recorded.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We value the conversion feature at origination of the notes using the Black-Scholes valuation model with the below assumptions. <span style="background-color: white">We value the derivative liability at the end of each accounting period, and upon conversion of the underlying note or warrant, with the difference in value recognized as gain or loss included in other income (expense) in our consolidated statements of operations.</span></span></p> <p id="xdx_895_ecustom--ScheduleOfConversionFeatureOfDerivativeLiabilityTableTextBlock_zmDyZYfh1mI1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zUgehGOBopE8" style="display: none">Schedule of Conversion Feature of Derivative Liability</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Six Months Ended</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rate </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zJnxK2MkGmih" style="width: 16%; text-align: right" title="Derivative liability, measurement input">2.01</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zj3CPUUPsvO7" style="width: 16%; text-align: right" title="Derivative liability, measurement input">0.09</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected term (in years) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_ecustom--DerivativeLiabilityMeasurementInputTerm_dtY_c20220101__20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zb5QC0KVFfAi" title="Derivative liability, measurement input, term">0.48</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_ecustom--DerivativeLiabilityMeasurementInputTerm_dtY_c20210101__20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zkXaZAck5an4" title="Derivative liability, measurement input, term">1.00</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zOsNpTHSG3Wf" style="text-align: right" title="Derivative liability, measurement input">154.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zwEyfCyZ45g9" style="text-align: right" title="Derivative liability, measurement input">237.4</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_dp_uPure_c20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zBNhb7PbGnib" style="text-align: right" title="Derivative liability, measurement input">0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_dp_uPure_c20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_z7JNpRWz9533" style="text-align: right" title="Derivative liability, measurement input">0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise price of underlying common shares</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20220630_zbFgXgPwcFhb" style="text-align: right" title="Exercise price of underlying common shares">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20210630_zWO0ZL9pvDOg" style="text-align: right" title="Exercise price of underlying common shares">0.004</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_8A7_zGJlaXHI1wD9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2022, the entire value of the principal of the debentures was assigned to the <span style="background-color: white">derivative liability and recognized as a debt discount. The debt discount is recorded as reduction (contra-liability) to the debentures and is being amortized over the initial term. Any excess balance was recognized as origination interest on the derivative liability and expensed on origination. </span>In accordance with the Company’s sequencing policy, shares issuable pursuant to the convertible debentures would be settled subsequent to the Company’s Series B preferred stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_899_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_zYQSrG7SF7Mj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is a summary of the activity of the derivative liability for the six months ended June 30, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span id="xdx_8B1_zqnNE9Yg1dM5" style="display: none">Schedule of Derivative Liability Activity</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BF_us-gaap--DerivativeInstrumentRiskAxis_custom--DebentureMember_zvOHMukBAXc1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Debenture</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_430_c20220101__20220630_eus-gaap--DerivativeLiabilitiesCurrent_iS_zYEmNBY2uC4d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Balance as of December 31, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,398,127</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--InitialFairValuePerDerivativeRecognition_zJeuR846Nd5f" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Initial fair value per derivative recognition</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">306,646</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--ConversionOfPrincipalAmountOfDebentureToCommonStock_zOhWBnUWYwc4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Conversion of debenture to common stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(76,562</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_ecustom--ChangeInFairValueOfDerivativeLiability_zRh6h4uyMLn6" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Change in fair value of derivative liability</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,153,224</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_434_c20220101__20220630_eus-gaap--DerivativeLiabilitiesCurrent_iE_zUOzOoJrxxr3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance as of June 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AD_zzhp0jF9rAaj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_895_ecustom--ScheduleOfConversionFeatureOfDerivativeLiabilityTableTextBlock_zmDyZYfh1mI1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zUgehGOBopE8" style="display: none">Schedule of Conversion Feature of Derivative Liability</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Six Months Ended</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">June 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rate </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zJnxK2MkGmih" style="width: 16%; text-align: right" title="Derivative liability, measurement input">2.01</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zj3CPUUPsvO7" style="width: 16%; text-align: right" title="Derivative liability, measurement input">0.09</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected term (in years) </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_ecustom--DerivativeLiabilityMeasurementInputTerm_dtY_c20220101__20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zb5QC0KVFfAi" title="Derivative liability, measurement input, term">0.48</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90F_ecustom--DerivativeLiabilityMeasurementInputTerm_dtY_c20210101__20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_zkXaZAck5an4" title="Derivative liability, measurement input, term">1.00</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zOsNpTHSG3Wf" style="text-align: right" title="Derivative liability, measurement input">154.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_uPure_c20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zwEyfCyZ45g9" style="text-align: right" title="Derivative liability, measurement input">237.4</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_dp_uPure_c20220630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zBNhb7PbGnib" style="text-align: right" title="Derivative liability, measurement input">0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--DerivativeLiabilityMeasurementInput_iI_pid_dp_uPure_c20210630__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_z7JNpRWz9533" style="text-align: right" title="Derivative liability, measurement input">0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercise price of underlying common shares</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20220630_zbFgXgPwcFhb" style="text-align: right" title="Exercise price of underlying common shares">0.001</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20210630_zWO0ZL9pvDOg" style="text-align: right" title="Exercise price of underlying common shares">0.004</td><td style="text-align: left"> </td></tr> </table> 2.01 0.09 P0Y5M23D P1Y 154.5 237.4 0 0 0.001 0.004 <p id="xdx_899_eus-gaap--ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock_zYQSrG7SF7Mj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The following is a summary of the activity of the derivative liability for the six months ended June 30, 2022:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span id="xdx_8B1_zqnNE9Yg1dM5" style="display: none">Schedule of Derivative Liability Activity</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BF_us-gaap--DerivativeInstrumentRiskAxis_custom--DebentureMember_zvOHMukBAXc1" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Debenture</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_430_c20220101__20220630_eus-gaap--DerivativeLiabilitiesCurrent_iS_zYEmNBY2uC4d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Balance as of December 31, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,398,127</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--InitialFairValuePerDerivativeRecognition_zJeuR846Nd5f" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Initial fair value per derivative recognition</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">306,646</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--ConversionOfPrincipalAmountOfDebentureToCommonStock_zOhWBnUWYwc4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Conversion of debenture to common stock</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(76,562</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_ecustom--ChangeInFairValueOfDerivativeLiability_zRh6h4uyMLn6" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Change in fair value of derivative liability</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,153,224</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_434_c20220101__20220630_eus-gaap--DerivativeLiabilitiesCurrent_iE_zUOzOoJrxxr3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance as of June 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,781,435</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 1398127 306646 -76562 1153224 2781435 <p id="xdx_80B_eus-gaap--PreferredStockTextBlock_z0jYq517Iij7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 8. <span id="xdx_82D_zipL3F91pPX3">Preferred Stock</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Series D Convertible Preferred Stock</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On April 8, 2021, the Company issued <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210408__20210408__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zEk44yowksuf" title="Number of common stock issue">400</span> shares of Series D Convertible Preferred Stock (the Series D Preferred Stock”) to </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">GHS Investments, LLC (“<span style="background-color: white">GHS”) pursuant to a Securities Purchase Agreement (“GHS April Agreement”) for net proceeds of $<span id="xdx_90A_eus-gaap--ProceedsFromIssuanceOfConvertiblePreferredStock_c20210408__20210408__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zUr45y0C9ME7" title="Proceeds from issuance of convertible preferred stock">427,600</span>. In conjunction with the GHS Agreement, the Company issued warrants to purchase <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_pid_c20210408__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zTwGYaEbheQ7" title="Warrant issued">40,000,000</span> shares of common stock at an exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20210408__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_z0qzY9O5V9Ad" title="Warrant exercise price">0.001</span>.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On May 12, 2021, the Company issued <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210512__20210512__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zE7ZvUv3lkyi" title="Number of common stock issue">150</span> shares of Series D Preferred Stock to GHS Investments, LLC pursuant to a Securities Purchase Agreement (“GHS May Agreement”) for net proceeds of $<span id="xdx_906_eus-gaap--ProceedsFromIssuanceOfConvertiblePreferredStock_pp0p0_c20210512__20210512__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zUsk4INbVIu5" title="Proceeds from issuance of convertible preferred stock">146,500</span>. In conjunction with the GHS Agreement, the Company issued warrants to purchase <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20210512__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zhBrTUhao6E8" title="Warrant issued">1,500,000</span> shares of common stock at an exercise price of $<span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210512__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zntsmVmzBVHb" title="Warrant exercise price">0.001</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="background-color: white">Notwithstanding, on June 23, 2021, GHS and the Company entered into a Rescission Agreement (the “Rescission Agreement”) pursuant to which the Company and GHS agreed to rescind, ab initio, the issuances of Warrants to GHS. Pursuant to the Rescission Agreement, GHS and the Company agreed that the issuance of the Warrants are unconditionally and irrevocably rescinded ab initio by GHS and the Company, and the Warrants are neither valid nor effective in any manner whatsoever. Further, GHS and the Company acknowledged that each has been restored to the position in which such party found itself on the date that the respective GHS Agreement was executed but without any references, rights or obligations relative to the Warrants contained in, or otherwise granted in, either the GHS Agreements or the Warrants. As a result, GHS has no rights whatsoever to the Warrants and the Company has no rights whatsoever to the any exercise price that it may have received pursuant to the Warrants. In connection with the execution and delivery of the Rescission Agreement, the Company and GHS entered into two (2) Amended and Restated Purchase Agreements which each seek to amend and restate the terms and conditions contained in the April Agreement and the May Agreement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On July 14, 2021, the Company issued <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210714__20210714__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zMOMyk5XnXy8" title="Number of common stock issue">250</span> shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS July Agreement”) for net proceeds of $<span id="xdx_90D_eus-gaap--ProceedsFromIssuanceOfConvertiblePreferredStock_pp0p0_c20210714__20210714__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zzbG3oKBNIul" title="Proceeds from issuance of convertible preferred stock">237,500</span>. On August 20, 2021, the Company issued <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210820__20210820__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zatVPDrAFyT9" title="Number of common stock issue">250</span> shares of Series D Preferred Stock to GHS pursuant to a Securities Purchase Agreement (“GHS August Agreement”) for net proceeds of $<span id="xdx_90E_eus-gaap--ProceedsFromIssuanceOfConvertiblePreferredStock_pp0p0_c20210820__20210820__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_z8e0KICuUIgd" title="Proceeds from issuance of convertible preferred stock">250,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On the one-year anniversary of the date of issuance of the Preferred Stock, the Company must redeem the Preferred Stock then outstanding at a price equal to the outstanding Stated Value together with any accrued but unpaid dividends.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In January 2022, GHS converted <span id="xdx_907_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_pid_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_z2zAzA5RqF6j" title="Conversion of shares">45</span> shares of Series D preferred stock with a stated value of $<span id="xdx_905_eus-gaap--PreferredStockValue_iI_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_z8bPbx3g6073" title="Preferred stock value">54,000</span> for <span id="xdx_90B_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_pid_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zVNVshBeLcec" title="Prefered Stock Convertible shares">36,000,000</span> shares of common stock at a conversion price of $<span id="xdx_90B_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zfBE3CzsuxKj" title="Conversion Price per share">0.0015</span> per share. As a result of the conversion, the Company recorded a deemed dividend of $<span id="xdx_907_eus-gaap--DividendsPaidinkind_c20220129__20220131__us-gaap--DebtInstrumentAxis__custom--ConvertibleMember_z4WgBJiftM3" title="Dividends">237,924</span>, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($<span id="xdx_905_eus-gaap--CommonStockConvertibleConversionPriceDecrease_pid_c20220129__20220131_z4UaL2a0l6K2" title="Conversion price">0.0015</span>) and original fixed conversion price of $<span id="xdx_906_eus-gaap--CommonStockConvertibleConversionPriceIncrease_pid_c20220129__20220131_zDuwopSNH2Uk" title="Fixed conversion price">0.008109</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2022, GHS converted <span id="xdx_901_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_pid_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_z6q8p1pO0xKe" title="Conversion of shares">19</span> shares of Series D preferred stock with a stated value of $<span id="xdx_90F_eus-gaap--PreferredStockValue_iI_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zPh8gQLLZYJk" title="Preferred stock value">22,800</span> for <span id="xdx_905_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_pid_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zyVhIpmuLMy7" title="Prefered Stock Convertible shares">38,000,000</span> shares of common stock at a conversion price of $<span id="xdx_90E_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zS1Qx469GSS3" title="Conversion Price per share">0.0006</span> per share. As a result of the conversion, the Company recorded a deemed dividend of $<span id="xdx_908_eus-gaap--DividendsPaidinkind_c20220629__20220630__us-gaap--DebtInstrumentAxis__custom--ConvertibleMember_zWnc80oawjKf" title="Dividends">285,342</span>, which is calculated as the number of shares of common stock issued multiplied by the difference between the conversion price ($<span id="xdx_909_eus-gaap--CommonStockConvertibleConversionPriceDecrease_pid_c20220629__20220630_zxWqJtoKmqI4" title="Conversion price">0.0006</span>) and original fixed conversion price of $<span id="xdx_90A_eus-gaap--CommonStockConvertibleConversionPriceIncrease_pid_c20220629__20220630_zzAegPp4R7Dh" title="Fixed conversion price">0.008109</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022, there were <span id="xdx_905_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zK6a8AhX2DBe" title="Preferred Stock shares outstanding">986</span> shares of Series D preferred stock outstanding, and $<span id="xdx_90F_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pp0p0_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zOYoZkRnifnj" title="Dividends payable">97,814</span> in accrued Series D dividends. As of December 31, 2021, there were <span id="xdx_907_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20211231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_ziKUgW6GpVIb" title="Preferred Stock shares outstanding">1,050</span> shares of Series D preferred stock outstanding, and $<span id="xdx_908_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pp0p0_c20211231__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zEoTlRXPYwxi" title="Dividends payable">52,944</span> in accrued Series D dividends.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due to the Company’s late filing on its Form 10-Q for the quarter ended March 31, 2022 (see Note 7), default provisions were triggered with the GHS agreement. As a result, it was determined all preferred stock were due for redemption immediately. The Company determined that $<span id="xdx_90F_ecustom--SeriesDPreferredStock_iI_c20220331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_z7BroDiTD0nk" title="Serie d prefrred stock">1,758,224</span>, inclusive of the stated value of the Series D preferred stock, and inclusive of accrued dividends, default penalties and interest, was due. As such, the Company reclassified $<span id="xdx_901_ecustom--ReclassificationOfSeriesDPreferredStock_c20220101__20220331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__us-gaap--StatementEquityComponentsAxis__us-gaap--AdditionalPaidInCapitalMember_z3aq0HwXDrKj" title="Reclassified Series d prefrred stock">1,015,999</span> of Series D preferred stock from additional paid-in capital to a current liability. The remaining amount of $<span id="xdx_904_eus-gaap--InterestExpenseDebt_c20220101__20220331__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember_zaKFpcJkzAfk" title="Interest expense">644,411</span></span> was included in interest expense in the consolidated statements of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> 400 427600 40000000 0.001 150 146500 1500000 0.001 250 237500 250 250000 45 54000 36000000 0.0015 237924 0.0015 0.008109 19 22800 38000000 0.0006 285342 0.0006 0.008109 986 97814 1050 52944 1758224 1015999 644411 <p id="xdx_807_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zwuR57XU4oad" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 9. <span id="xdx_820_zXe5tYkJzh37">Stockholders’ Equity (Deficit)</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Common Stock</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In January 2022, GHS converted <span id="xdx_901_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zEqaNxWyQa09" title="Preferred stock convertible shares issuable">45</span> shares of Series D preferred stock with a stated value of $<span id="xdx_901_eus-gaap--ConversionOfStockAmountConverted1_c20220129__20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zKwgJyZ9y4b2" title="Converted value">54,000</span> for <span id="xdx_903_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_pid_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zPzoQ8HPlSE3" title="Preferred stock shares issuable">36,000,000</span> shares of common stock at a conversion price of $<span id="xdx_904_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220131__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zRdQXJWak5oh" title="Preferred stock, convertible, conversion price">0.0015</span> per share.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2022, GHS converted <span id="xdx_902_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zTrvKJEMtRH2" title="Preferred stock convertible shares issuable">19</span> shares of Series D preferred stock with a stated value of $<span id="xdx_906_eus-gaap--ConversionOfStockAmountConverted1_c20220629__20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zzG6qi3Y9rC3" title="Converted value">57,000</span> for <span id="xdx_90E_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_pid_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zkK58Icttowf" title="Preferred stock shares issuable">38,000,000</span> shares of common stock at a conversion price of $<span id="xdx_901_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesDPreferredStockMember__dei--LegalEntityAxis__custom--GHSInvestmentsLLCMember_zOz1tFpe29zk" title="Preferred stock, convertible, conversion price">0.0006 </span> per share.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the six months ended June 30, 2022, Auctus exercised warrants for <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_c20220101__20220630__dei--LegalEntityAxis__custom--AuctusMember_zuoZGOYlKp9a" title="Warrants exercised">140,966,300</span> shares of common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2021, an aggregate of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210301__20210331__srt--TitleOfIndividualAxis__custom--BoardMembersMember_zEYlOBeZXr6j" title="Number of common stock issue">140,000,000</span> shares of common stock were issued to the board members for accrued dividends as well as current compensation the year ended December 31, 2021. Of these shares issuances, $<span id="xdx_904_eus-gaap--LaborAndRelatedExpense_c20210301__20210331__srt--TitleOfIndividualAxis__custom--BoardMembersMember_zK6Hi9sKnZw6" title="Personnel costs">961,666</span> is included in personnel costs in the consolidated statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2021, an aggregate of <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210301__20210331__srt--TitleOfIndividualAxis__custom--EmployeesAndConsultantsMember_za2dw0LXls19" title="Number of common stock issue">31,834,386</span> shares of common stock were issued to employees and consultants for accrued and current consulting services for a total fair value of $<span id="xdx_90C_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensationForfeited_c20210301__20210331__srt--TitleOfIndividualAxis__custom--EmployeesAndConsultantsMember_zepLrYy7tQ2b" title="Number of common stock issue, value">236,448</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2021, an aggregate of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210601__20210630__srt--TitleOfIndividualAxis__custom--EmployeesAndConsultantsMember_zUDJAyXdl8Fi" title="Number of common stock issue">11,956,004</span> shares of common stock were issued pursuant to conversion of balances owed to a related party and accrued consulting services totaling $<span id="xdx_90E_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensationForfeited_c20210601__20210630__srt--TitleOfIndividualAxis__custom--EmployeesAndConsultantsMember_zFadXQN2oCHh" title="Number of common stock issue, value">204,364</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2021, Auctus exercised <span id="xdx_90C_ecustom--SharesIssuedExerciseOfWarrantsShares_c20210101__20210630__dei--LegalEntityAxis__custom--AuctusMember_zs2gMnjFwRZk" title="Shares issued for exercise of warrants">32,142,857</span> warrants into shares of common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2021, Pride converted <span id="xdx_906_eus-gaap--ConversionOfStockSharesConverted1_c20210101__20210630__srt--TitleOfIndividualAxis__custom--PrideMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesCPreferredStockMember_z4FKnOpcpzig" title="Number of shares converted">53,000</span> shares of Series C preferred stock for <span id="xdx_902_eus-gaap--ConversionOfStockSharesIssued1_c20210101__20210630__srt--TitleOfIndividualAxis__custom--PrideMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesCPreferredStockMember_zmlcFw2zVwY1" title="Conversion of stock, shares issued">53,000,000</span> shares of common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the six months ended June 30, 2022 and 2021, the Company issued <span id="xdx_90D_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebenturesMember_zXK7Hw76MLTb" title="Debt conversion, shares issued">84,325,397</span> and <span id="xdx_90E_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20210101__20210630__us-gaap--DebtInstrumentAxis__custom--DebenturesMember_zt7LTt3iWcA" title="Debt conversion, shares issued">137,987,777</span> shares of common stock pursuant to conversion of debentures in the principal amount of $<span id="xdx_90F_eus-gaap--DebtConversionConvertedInstrumentAmount1_c20220101__20220630__us-gaap--DebtInstrumentAxis__custom--DebenturesMember_zt59BLgCH2Pj" title="Debt conversion, shares issued value">50,000</span> and $<span id="xdx_90E_eus-gaap--DebtConversionConvertedInstrumentAmount1_c20210101__20210630__us-gaap--DebtInstrumentAxis__custom--DebenturesMember_za5bZifMifP9" title="Debt conversion, shares issued value">495,247</span>, all respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 45 54000 36000000 0.0015 19 57000 38000000 0.0006 140966300 140000000 961666 31834386 236448 11956004 204364 32142857 53000 53000000 84325397 137987777 50000 495247 <p id="xdx_80B_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zbTGhX9AThdj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10. <span id="xdx_820_z8XvWmqnJoF6">Options and Warrants</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Options</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022 and December 31, 2021, we had <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20220630__us-gaap--PlanNameAxis__custom--TwoThousandTwelveEquityIncentivePlanMember_zUqZCrXe3lQk" title="Options outstanding"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20211231__us-gaap--PlanNameAxis__custom--TwoThousandTwelveEquityIncentivePlanMember_zHsNGzg8aHE4" title="Options outstanding">0</span></span> options remaining outstanding pursuant to the 2012 Equity Incentive Plan.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Warrants</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022 and December 31, 2021, we had <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_c20220630_zmfvwuhGburc" title="Warrants outstanding">28,333,333</span> and <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_c20211231_zU76jypsETjh" title="Warrants outstanding">174,058,782</span> warrants outstanding, respectively, with a weighted average exercise price of $<span id="xdx_900_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20220630_zRGPHP8UeWuc" title="Warrant exercise price">0.01</span> and $<span id="xdx_900_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20211231_zLAlVG4qtizl" title="Warrant exercise price">0.02</span> per share. In the six months ended June 30, 2022, Auctus exercised warrants for <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_c20220101__20220630__dei--LegalEntityAxis__custom--AuctusMember_zSsFd32Hbm7b" title="Exercise of warrants, shares">140,966,300</span> shares of common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 0 0 28333333 174058782 0.01 0.02 140966300 <p id="xdx_804_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zuJ3pryN41ff" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 11. <span id="xdx_82C_z2oaVVNrzXif">Related Party Transactions</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Parties, which can be a corporation or an individual, are considered to be related if we have the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Companies are also considered to be related if they are subject to common control or common significant influence.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Notes Payable to Related Party</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes payable to related parties at June 30, 2022 and December 31, 2021 included a note of $<span id="xdx_902_eus-gaap--NotesPayableRelatedPartiesCurrentAndNoncurrent_iI_pp0p0_c20220630_zFL8izhcymK5" title="Notes payable to related parties"><span id="xdx_908_eus-gaap--NotesPayableRelatedPartiesCurrentAndNoncurrent_iI_pp0p0_c20211231_zAmwklXok0bk" title="Notes payable to related parties">1,800</span></span> with a <span id="xdx_902_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_uPure_c20220630_zoJKtpXX7zmg" title="Interest rate"><span id="xdx_905_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_uPure_c20211231_znKvT7teLUPl" title="Interest rate">2</span></span>% annual interest rate. Currently the Company has defaulted on this obligation. Forbearance has been granted by the related party.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In February 2022, the Company issued a promissory note to a related party for $<span id="xdx_906_eus-gaap--NotesPayableRelatedPartiesCurrentAndNoncurrent_iI_pp0p0_c20220228_zlDARWlkpQWe" title="Notes payable to related party">70,000</span>. The note is unsecured and matured in April 2022. The note does not bear interest. The note includes a promise to issue shares of the Company’s preferred stock, which was undetermined as of June 30, 2022. As of June 30, 2022, the note was in default.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Accrued Salaries and Compensation</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022 and December 31, 2021, accrued salaries to our company officers and executive director totaled $<span id="xdx_90C_eus-gaap--AccruedSalariesCurrentAndNoncurrent_iI_pp0p0_c20220630__srt--TitleOfIndividualAxis__custom--OfficersAndExecutiveDirectorMember_zk9XJMqOxMa7" title="Accrued salaries">522,804</span> and $<span id="xdx_90F_eus-gaap--AccruedSalariesCurrentAndNoncurrent_iI_pp0p0_c20211231__srt--TitleOfIndividualAxis__custom--OfficersAndExecutiveDirectorMember_zRJphXw7Nnk" title="Accrued salaries">472,804</span>, respectively, and is included in accrued salaries and consulting fees in our consolidated balance sheets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2021, we issued <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesShareBasedCompensation_c20210301__20210331__srt--TitleOfIndividualAxis__srt--ChiefOperatingOfficerMember_zJtM9MFug331" title="Common shares issued for cash, shares">200,000,000</span> shares of common stock to the Chief Operating Officer for a total fair value of $<span id="xdx_905_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensation_pp0p0_c20210301__20210331__srt--TitleOfIndividualAxis__srt--ChiefOperatingOfficerMember_z1pwytPndpSi" title="Number of shares issued, value">160,000</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Board of Directors</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In March 2021, we issued <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210301__20210331__srt--TitleOfIndividualAxis__custom--SevenBoardMembersMember_zYQEczXsRvi9" title="Common shares issued for cash, shares">20,000,000</span> shares of common stock to each of the seven board members, including the Chief Executive Officer, for an aggregate of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20210301__20210331_zNydwQkEO19j" title="Common shares issued for cash, shares">140,000,000</span> shares. Of these share issuances, $<span id="xdx_909_eus-gaap--LaborAndRelatedExpense_pp0p0_c20210301__20210331__srt--TitleOfIndividualAxis__custom--SevenBoardMembersMember_zziDD98FMk9l" title="Personnel costs">961,666</span> is included in personnel costs in the consolidated statements of operations and the remaining $<span id="xdx_905_ecustom--ConversionOfAccruedConsultingFeesIntoCommonShares_pp0p0_c20210301__20210331__srt--TitleOfIndividualAxis__custom--SevenBoardMembersMember_z3ablnGr4215" title="Conversion of accrued consulting fees into common shares">138,334</span> was converted from accrued salaries and consulting fees.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A former board member is the co-founder and president of ProcureAM, LLC, the fund advisor for the Fund. During 2021, we initially received $<span id="xdx_90E_eus-gaap--ReceivablesNetCurrent_iI_c20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ProcureAMLLCMember_zk956VXskuJi" title="Receivables, net, current">100,000</span> from ProcureAM and provided an additional $<span id="xdx_90B_eus-gaap--ReceivablesNetCurrent_iI_c20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CustodianMember_zJ75RYXD8x6j" title="Receivables, net, current">305,000</span> to the custodian. As of December 31, 2021, we have recorded $<span id="xdx_90E_ecustom--FundExpenses_c20210101__20211231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CustodianMember_znpZKNdN3qP1" title="Fund expenses">305,000</span> in fund expenses and do not expect to receive any amounts back from ProcureAM. In the six months ended June 30, 2022, we recorded an additional $<span id="xdx_90A_ecustom--FundExpenses_c20220101__20220630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CustodianMember_zae2CtBVAh67" title="Fund expenses">100,000</span> in fund expenses which we do not expect to receive any amounts back from ProcureAM. As such, other receivable was $<span id="xdx_90C_eus-gaap--OtherReceivablesNetCurrent_iI_c20220630_zINoQq2iJkxb" title="Other receivables">0</span> on the consolidated balance sheets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; color: #212529"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On April 15, 2022, Deborah Fuhr submitted her resignation as a member of the Board, effective immediately. Ms. Fuhr submitted her resignation to pursue other interests. The Company’s Board accepted Ms. Fuhr’s resignation and expressed its appreciation for the services she provided to the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Accounts Payable</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of June 30, 2022 and December 31, 2021, the Company had $<span id="xdx_907_eus-gaap--AccountsPayableRelatedPartiesCurrentAndNoncurrent_iI_c20220630__srt--TitleOfIndividualAxis__custom--OfficersAndBoardMembersMember_z6US3v1hPOLg" title="Accounts payable to related parties">168,308</span> and $<span id="xdx_903_eus-gaap--AccountsPayableRelatedPartiesCurrentAndNoncurrent_iI_c20211231__srt--TitleOfIndividualAxis__custom--OfficersAndBoardMembersMember_z91qa2V9JDdl" title="Accounts payable to related parties">102,808</span>, respectively, included in accounts payable to related parties including officers and board members.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 1800 1800 0.02 0.02 70000 522804 472804 200000000 160000 20000000 140000000 961666 138334 100000 305000 305000 100000 0 168308 102808 <p id="xdx_807_eus-gaap--SubsequentEventsTextBlock_ztmMOTmRh69b" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 12. <span id="xdx_82E_zIqe8Xgvjx6f">Subsequent Events</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management has evaluated all activity up to November 11, 2022 and concluded that no subsequent events have occurred that would require recognition in these financial statements or disclosure in the notes to these financial statements other than the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On August 25, 2022, Barney Frank and Martina Navratilova submitted their resignations as Directors of LGBTQ Loyalty Holdings, Inc. (the “Company”) with immediate effect. Additionally, on August 27, 2022, William Bean submitted his resignation as a Director of the Company with immediate effect. Mr. Frank and Mr. Bean submitted their resignations due to differences of opinion in the direction of the Company. Each of Messrs. Frank and Bean and Ms. Navratilova have offered to tender their respective shares of Common Stock back to the Company.</span></p> EXCEL 52 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx M4$L#!!0 ( $TV;E4'04UB@0 +$ 0 9&]C4')O<',O87!P+GAM M;$V./0L",1!$_\IQO;=!P4)B0-!2L+(/>QLOD&1#LD)^OCG!CVX>;QA&WPIG M*N*I#BV&5(_C(I(/ !47BK9.7:=N')=HI6-Y #OGDK7A.YNJQ<&4GPZ4A!0W_J=0U[R;UEA_6\#MI7E!+ P04 M " !--FY5M=7:K>X K @ $0 &1O8U!R;W!S+V-O&ULS9+! 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