U. S. Securities and Exchange Commission

Washington, D.C. 20549

 

FORM 10-K

 

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

 

For the fiscal year ended December 31, 2022

 

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

 

Commission File No. 333-148005

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

(Name of small business issuer as in its charter)

 

Nevada

 

47-1399226

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

6955 North Durango Drive, Suite 1115-129

Las Vegas, NV 89149

(Address of principal executive offices, Zip Code)

 

(702) 505-0743

(Registrant's telephone number, including area code)

 

Securities Registered under Section 12(b) of the Exchange Act: None

 

Securities Registered under Section 12(g) of the Exchange Act: Common stock, par value $0.001 per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes ☒ No

 

Indicate by check mark if the registrant is not required to file reports pursuant Section 13 or 15(d) of the Exchange Act. ☐ Yes ☒ No

 

Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections

 

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

 

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

 

Large accelerated filer

Accelerated filer

Non-accelerated Filer

Smaller reporting company

Emerging growth company

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☒ No

 

The aggregate market value of registrant’s voting and non-voting common equity held by non-affiliates (as defined by Rule 12b-2 of the Exchange Act) computed by reference to the average bid and asked price of such common equity on June 30, 2022 was $1,410,381.

 

The number of shares of registrant's common stock outstanding as of July 13, 2023 was 3,711,714,036.

 

 

 

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

2022 ANNUAL REPORT ON FORM 10-K

 

PART I.

 

 

Item 1.

Business

3

 

Item 1A.

Risk Factors

8

 

Item 1B.

Unresolved Staff Comments

8

 

Item 2.

Properties

8

 

Item 3.

Legal Proceedings

8

 

Item 4.

Mine Safety Disclosures

8

 

 

 

PART II.

 

 

Item 5.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

9

 

Item 6.

[Reserved]

9

 

Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

13

 

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

13

 

Item 8.

Financial Statements and Supplementary Data

F-1

 

Item 9.

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

14

 

Item 9A.

Controls and Procedures

14

 

Item 9B

Other Information

15

 

 

PART III.

 

 

Item 10.

Directors, Executive Officers and Corporate Governance

16

 

Item 11.

Executive Compensation

17

 

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Management and Related Stockholder Matters

18

 

Item 13.

Certain Relationships and Related Transactions and Director Independence

19

 

Item 14.

Principal Accounting Fees and Services

20

Item 15.

Other Information

 

21

 

 

 

PART IV.

 

 

Item 16.

Exhibits, Financial Statement Schedules

 

22

 

 

Table of Contents

 

FORWARD LOOKING STATEMENTS

 

This annual report on Form 10-K contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this annual report on Form 10-K. Additionally, statements concerning future matters are forward-looking statements.

 

Although forward-looking statements in this annual report on Form 10-K reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward- looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings “Risks Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-K. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K. We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

 

We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this annual report on Form 10-K, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this annual report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.

 

 
2

Table of Contents

 

PART I

 

ITEM 1. BUSINESS

 

As used in this Annual Report, “we,” “us,” “our,” “LFC,” “Company” or “our Company” refers to Lingerie Fighting Championships, Inc.

 

History

 

We were incorporated in Nevada on November 29, 2006 under the name Sparking Events, Inc., and on September 16, 2013 our corporate name was changed to Cala Energy Corp., (formally, Xodtec LED, Inc.) under which we were engaged in the business of offering services, such as enhanced oil recovery and material supplies, to gas and oil fields predominantly located in Southeast Asia. We were not successful in our efforts and discontinued this line of business.

 

On March 31, 2015, the Company, pursuant to share exchange agreement (the "Share Exchange Agreement"), among the Company, Lingerie Fighting Championships, Inc. (“LFC”), and the holders of all of the outstanding common stock and convertible notes of LFC exchanged their common stock and convertible notes of LFC for a total of 16,750,000 shares of common stock, which represented 84.70% of the Company's common stock after giving effect to the issuance of the shares pursuant to the Share Exchange Agreement and the shares of common stock issued in the private placement described in the following paragraph. The issuance of the 16,750,000 shares of common stock to the former holders of LFC's common stock and convertible notes in exchange for the capital stock of LFC is referred to as the reverse acquisition transaction. The sole director and chief executive officer of LFC became a director and the chief executive officer of the Company. As a result of the reverse acquisition, the Company's business has become the business of LFC.

 

As a result of the reverse acquisition with LFC, we ceased to be a shell company on March 31, 2015.

 

Effective as of April 1, 2015, we changed our name to “Lingerie Fighting Championships, Inc.” a name which more accurately represents our new business. We effected the name change by virtue of a short form merger, pursuant to which LFC (our wholly owned subsidiary after the LFC Acquisition) merged with and into the Company, with the Company remaining as the surviving parent corporation. In connection with the name change, we submitted to FINRA a voluntary request for the change of our OTC trading symbol. Our Common Stock now trades under the symbol “BOTY”.

 

As a result of, and in connection with, the reverse acquisition, the Company changed its fiscal year to December 31, which was LFC’s fiscal year, from a fiscal year ending February 28.

 

On April 20, 2015, the Company effected a one-for-800 reverse split, pursuant to which each share of common stock was converted into, and became 1/800 of a share of common stock, with fractional shares being rounded up to the next higher whole number of shares. As a result of the reverse split, the 339,757,357 shares of common stock, then outstanding, became and were converted into 424,977 shares. All references to shares of common stock and per share information retroactively reflect the reverse split.

 

On September 14, 2016, Lingerie Fighting Championships, Inc., a Nevada Corporation (the “Company”) filed an amendment to its articles of incorporation (the “Amendment”) with the Secretary of State of the State of Nevada, which, among other things, established the designation, powers, rights, privileges, preferences and restrictions of the Series A Preferred Stock, $0.001 par value per share (the “Series A Preferred Stock”).

 

Among other provisions, each one (1) share of the Series A Preferred Stock shall have voting rights equal to (x) 0.019607 multiplied by the total issued and outstanding shares of common stock of the Company eligible to vote at the time of the respective vote (the “Numerator”), divided by (y) 0.49, minus (z) the Numerator. For purposes of illustration only, if the total issued and outstanding shares of common stock of the Company eligible to vote at the time of the respective vote is 5,000,000, the voting rights of one share of the Series A Preferred Stock shall be equal to 102,036 (0.019607 x 5,000,000) / 0.49) - (0.019607 x 5,000,000) = 102,036).

 

Fifty-one (51) shares of Series A Preferred Stock were authorized and fifty-one (51) shares of Series A Preferred Stock were issued to Shaun Donnelly, the Company’s Chief Executive Officer and a director of the Company.

 

On November 22, 2016, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation (the “Amendment”) with the Secretary of State of Nevada to increase the number of authorized shares of common stock, par value $0.001 per share, from four hundred million (400,000,000) shares to one billion (1,000,000,000) shares. A true and correct copy of the Amendment is filed as Exhibit 3.1 to this report.

 

 
3

Table of Contents

 

On January 23, 2017, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation (the “Amendment”) with the Secretary of State of Nevada to increase the number of authorized shares of common stock, par value $0.001 per share, from one billion (1,000,000,000) shares to one billion two hundred million (1,200,000,000) shares. The Company did not timely comply with the requirements of Regulation 14C under the Exchange Act for the above referenced increases in the Company’s authorized common shares. This would have required us to circulate an information statement describing the corporate actions taken above by the written consent of a majority of our shareholders at least 20 days prior to the effective date of the corporate action. We did however have super majority shareholder consent as required for amending the articles of incorporation. The failure to initially comply with Regulation 14C in a timely manner was inadvertent, and while not probable, could cause the SEC to bring an enforcement action or commence litigation against us for failure to comply with Regulation 14C. Such enforcement could subject us to penalties including the payment of fines or damages. Any such claims or actions could cause us to expend financial resources to defend ourselves, and could divert the attention of our management from our core business.

 

On November 2, 2017, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation (the “Amendment”) with the Secretary of State of Nevada to increase the number of authorized shares of common stock, par value $0.001 per share, from one billion two hundred million (1,200,000,000) shares to five billion (5,000,000,000) shares. A true and correct copy of the Amendment is filed as Exhibit 3.1 to this report.

 

Our Business

 

Our LFC business and brand is focused on building and establishing a sports entertainment league that utilizes wrestling and mixed martial arts (“MMA”) fighting techniques for purposes of providing entertainment. We seek to promote and market our brand, our programming, our events and our products.

 

Our mission is to establish the popularity of our LFC league and brand based on holding live events and to promote our athletes via a reality series and merchandise such a t-shirts and calendars. Our uniqueness is derived from our predominantly all female league structure, where a vast array of beautiful, attractive and unique women engage in wrestling and MMA fighting techniques against one another for purposes of delivering high quality entertainment to mature audiences.

 

Our management believes that the LFC league and our unique approach in applying a predominantly all female league structure to wrestling and mixed martial arts gives us a substantial competitive advantage to build the popularity of the LFC league in general.

 

Recent Business Development

 

In May, 2023 we signed a license deal with Tubi, a streaming platform owned by Fox that has 64 million active monthly users. On June 1 they uploaded a single event, LFC21, which received more than 830,000 views in June. As of July 1 they had added 12 more events and plan to add the rest in August.

 

Over the past year we have seen a massive increase in the popularity of our YouTube Channel, which now has nearly 600,000 subscribers. Our most recent event, LFC37, has been viewed more than 3.7 million times on the channel and is generating monthly revenues of nearly $10,000.

 

On February 14 we held LFC37: Back to the Mansion at the Sapphire Showroom in Las Vegas.

 

On May 5, 2021, we were booked to perform three events at the Sturgis Buffalo Chip during the closing weekend of the 2021 Sturgis Motorcycle Rally in Sturgis, SD. LFC32, LFC33 & LFC34 were very well attended.

 

On June 21, 2021, we have partnered with Agape Impetus Dunamis Ministries (AIDM) as one of the league’s principal sponsors at their 3 upcoming events at the Sturgis Motorcycle Rally. The California-based ministry created an inspirational design which will adorn the LFC ring during the league’s events on the closing weekend of the Rally which is expected to draw as many as 750,000 bike enthusiasts.

 

In July 2021, we were approached by a company called Scuffle LLC who specialize in launching Roku channels. We have partnered with them to launch our own channel we'll be calling "LFC Network". The channel will carry our past events, our reality series and several new series we plan to create. It will be similar in scope to WWE Network. It will be funded by a combination of subscription fees, advertisers and sponsors, both self generated and placed by Roku itself.

  

 
4

Table of Contents

 

On August 27, 2021, we announced LFC35: Booty Camp 3D which would take place Halloween in Las Vegas and would be shot using 360 degree virtual reality cameras.

 

On September 1, 2021, we announced the launch of LFC Madness 2, a follow-up to our first LFC Madness bracket style virtual tournament. Once again the two prospects with the most votes would fight each other at LFC35 and each would receive a $1200 diamond bracelet courtesy Boston Diamonds & Bling.

 

On October 1, 2021, LFC Network was launched on schedule on Roku.

 

On October 19, 2021, we launched our own branded CBD pain relief cream called 'LFC True Relief'. The product is available for sale on our site.

 

Our Events

 

Our operations seek to be organized around the development, promotion and distribution of our live events and televised entertainment programming. We also seek to develop branding and merchandising avenues for revenues.

 

Live Events

 

Our live events are a unique mix of MMA and professional wrestling performed before a live audience and recorded and edited by our in-house production team.

  

To date, we have hosted 21 live events across the U.S. and Europe as well as more than 120 episodes of a reality series which are normally 30 minutes each. Our brand is growing on social media where our content has been viewed by more than 180 million people.

 

Video Programming

 

We are an independent producer of video programming for digital home video and intend to develop such video programming for broadcast television, cable television, pay-per-view and video-on-demand markets. We produce scripted style fights featuring attractive and athletic females of the LFC league clothed in lingerie. Our featured episodes, called the Lingerie Fighting Championships, include live action content stylized and modeled in the format of a reality television series.

 

Television Programming; Pay-Per View Programming

 

We will produce and own our television programming and video library and believe that pay-per-view and video-on- demand television distribution presents opportunities to generate revenue for our business. In an effort to build our LFC brand, we plan to distribute our live event programming through pay-per-view and video-on-demand television outlets in the future.

 

Home Video

 

We expect to pursue opportunities in the home video market by licensing, on a distribution fee and/or royalty basis our growing video library to third parties to develop, produce, manufacture, and sell DVDs for the home video market. We hope to develop a video library with proprietary material from our live events, television broadcasts, special events and behind the scenes content of live events. To date, we have developed and produced an LFC DVD entitled “Lingerie Fighting Championships: Lace vs Leather” which is currently being sold on the LFC official website (www.lingeriefc.com) as well as Amazon.com.

 

It is intended that we will continue to produce develop our video programming to be sold in DVD volume installments in retail stores and on-line via such e-commerce platforms such as the LFC official site (www.lingeriefc.com) and other third party retailers including, but not limited to, Amazon® and iTunes®. We are currently in discussion with various other retailers specializing in home video distribution. All references herein to Amazon®, iTunes®, YouTube® or Facebook® are to websites operated by such entities and we do not have any rights, affiliation or license with them other than the presence of our media or products on such media platforms as set forth herein.

 

 
5

Table of Contents

 

Online Programming

 

We utilize the Internet to communicate with our fans and market and distribute our various programming. Through our network of websites and social media, our fans and customers can obtain the latest news and information on the LFC, purchase our live event tickets, home video programming, and purchase our branded merchandise. Our main site is www.lingeriefc.com.

 

Branded Merchandise

 

Licensing and Direct Sales. We believe that licensing of LFC names, logos and copyrighted works on a variety of retail products presents a further opportunity to generate revenues. As our brand grows, we expect to pursue greater opportunities to expand our licensing efforts through a more comprehensive licensing program.

 

Competition

 

Competition for Viewers. The entertainment market in which we operate has a limited fan base and is highly competitive. We must compete for the time and attention of viewers with more established content programming and entertainment value. We compete on the basis of a number of factors, including quality of experience, relevance, accessibility, perceptions of ad load, brand awareness and reputation.

 

List of Competitors. Our events, we anticipate, caters to a niche audience. Our audience, we anticipate, will consist primarily of a mature audience with an appreciation of MMA and contact sports and professional wrestling. We compete with athletic events as well as mature audience entertainment. While we do pride our business model on having an athletic appeal, we do not deem ourselves as a conventional full contact sport, and our events are designed as scripted fictional entertainment. For additional details on risks related to competition for listeners, please refer to the section entitled “Risk Factors.”

 

Our competitors include among others:

 

 

·

Sports Entertainment Providers. We compete on a national basis primarily with World Wrestling Entertainment, Inc., and its subsidiaries (collectively, the “WWE”) and Zuffa, LLC, the American sports promotion company specializing in mixed martial arts and parent company of the Ultimate Fighting Championship league (collectively, the “UFC”). We will have to compete with WWE and the UFC in many aspects of our business, including viewership, application of mixed martial arts, access to arenas, the sale and licensing of branded merchandise and distribution channels for our televised programs. We also directly compete to find, hire and retain talented performers. WWE and UFC has substantially greater financial resources than we do, and already has an established fan base and following, and are affiliated with television cable networks on which WWE’s and UFC’s programs are aired. Other sources of competition in our sports entertainment market are regional promoters of wrestling events.

 

 

 

 

·

Television Network Scheduling. Conventional sports channels may not accept us or may limit us to less popular time slots. Because we are not a conventional sports league, and due to the mature target audience for our events, mainstream sporting channels may not accept us or may limit our events to mid-day, late night or "half time" type channel slots, as opposed to prime-time televised scheduling.

 

 

 

 

·

Other Forms of Media. We compete for the time and attention of our listeners with providers of other forms of in- home and mobile entertainment. We rely on having a modest but growing YouTube® following. To the extent existing or potential viewers choose to watch cable television, stream video from on-demand services such as Netflix, Hulu, VEVO or YouTube or play interactive video games on their home-entertainment system, computer or mobile phone rather than view our LFC programming or attend our live events, these content services pose a competitive threat.

 

 
6

Table of Contents

 

Government Regulation

 

Live Events. In various states in the United States and some foreign jurisdictions, athletic commissions and other applicable regulatory agencies require fighting leagues to obtain licenses for promoters, medical clearances and/or other permits or licenses for performers and/or permits for events in order for us to promote and conduct live events. Since we are scripted and not a full contact competitive sport, we are not subject to such regulation. If rules change or if our business structure changes or if we are perceived as being an athletic full contact sport, we could become subject to such regulation. In the event that we fail to comply with the regulations of a particular jurisdiction, we may be prohibited from promoting and conducting our live events in that jurisdiction. The inability to present our live events over an extended period of time or in a number of jurisdictions could lead to a decline in the various revenue streams generated from our live events, which could adversely affect our operating results.

 

Television Programming. The production of television programming by independent producers is not directly regulated by the federal or state governments, but the marketplace for television programming in the United States and internationally is substantially affected by government regulations applicable to, as well as social and political influences on, television stations, television networks and cable and satellite television systems and channels. We voluntarily designate the suitability of each of our television shows using standard industry ratings. Changes in governmental policy and private- sector perceptions could further restrict our program content and adversely affect our levels of viewership and operating results.

 

Online Programming. The Company intends to conduct business on the internet and will be subject to a number of foreign and domestic laws and regulations relating to consumer protection, information security, data protection and privacy, among other things. Many of these laws and regulations are still evolving and could be interpreted in ways that could harm our business. In the area of information security and data protection, the laws in several states require companies to implement specific information security controls to protect certain types of information. Likewise, all but a few states have laws in place requiring companies to notify users if there is a security breach that compromises certain categories of their information. Any failure on our part to comply with these laws may subject us to significant liabilities.

 

Intellectual Property

 

Trademarks and Copyrights. We believe that intellectual property and merchandising will be material to our business and we will expend cost and effort in an attempt to develop and protect our intellectual property and to maintain compliance vis-à-vis other parties' intellectual property. A principal focus of our efforts is to protect the intellectual property relating to our originally created characters portrayed by our performers, which encompasses images, likenesses, names and other identifying indicia of these characters. We have registered the domain name www.lingeriefc.com as our website. We currently do not have any registered trademarks. We may, however, seek to register or assert common law rights with respect to the names, terms, slogans, titles and event names we have been using to date.

 

We anticipate some revenues from branding merchandise, apparel, and particularly lingerie and swimwear using both our and other licensed brands. To accomplish this, we will have to rely on a combination of intellectual property rights, including trade secrets, copyrights, trademarks, contractual restrictions, technological measures and other methods. Further, we seek to enforce our intellectual property rights by, among other things, searching the internet to ascertain unauthorized use of our intellectual property, seizing goods that feature unauthorized use of our intellectual property and seeking restraining orders and/or damages in court against individuals or entities infringing our intellectual property rights. Our failure to curtail piracy, infringement or other unauthorized use of our intellectual property rights effectively, or our infringement of others' intellectual property rights, could adversely affect our operating results. We may be the subject of trademark and copyright infringements suits from other companies that seek to protect their names or marks on the basis of similarity or dilution, and no assurance can be made that we will be able to defend such actions.

 

 
7

Table of Contents

 

Employees

 

The Company has one employee, Shaun Donnelly, our Chief Executive Officer and Chief Financial Officer. Cast and crew are hired on a contract basis for each live event.

 

Available Information

  

Our website address is www.LFCfights.com. We do not intend our website address to be an active link or to otherwise incorporate by reference the contents of the website into this Report. The public may read and copy any materials the Company files with the U.S. Securities and Exchange Commission (the “SEC”) at the SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0030. The SEC maintains an Internet website (http://www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.

 

ITEM 1A. RISK FACTORS.

 

We are not required to provide this information as we are a smaller reporting company.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS.

 

Not applicable.

 

ITEM 2. PROPERTIES

 

We do not own or lease any property. Our mailing address is 6955 North Durango, Suite 1115-129, Las Vegas, NV, 89149, telephone (702) 505-0743. Our website is www.LFCfights.com.

 

ITEM 3. LEGAL PROCEEDINGS

 

Other than described below, we are not currently involved in any litigation that we believe could have a materially adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or of our Company’s or our Company’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

However, from time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

 

On August 24, 2018, Mr. Jeffrey Stone, a former consultant of the Company, filed suit against the Company and our CEO, Mr. Shaun Donnelly, in New York County Civil Court alleging that the Company failed to provide some of the promised shares of common stock as compensation for services rendered pursuant to an agreement whereby Mr. Stone was to provide investor relations services to the Company. This suit was settled on April 12, 2019 for $5,000.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not Applicable.

 

 
8

Table of Contents

 

PART II

 

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

 

(a) Market Information.

 

Our common stock trades on the OTC Pink under the symbol BOTY. The former symbol for our common stock was OILL and, after the reverse stock split, OILLD. The symbol was changed to BOTY on April 29, 2015.

 

(b) Holders

 

As of July 13, 2023, we had approximately 251 shareholders of our common stock. Such number of record holders was derived from the records maintained by our transfer agent, Island Stock Transfer. This figure does not include those shareholders whose certificates are held in the name of broker-dealers or other nominees.

 

(c) Dividends

 

We have never paid any cash dividends on our common shares, and we do not anticipate that we will pay any dividends with respect to those securities in the foreseeable future. Our current business plan is to retain any future earnings to finance the expansion development of our business. The payment of future cash dividends is subject to the discretion of the Board of Directors and will depend upon the Company's earnings (if any), general financial condition, cash flows, capital requirements and other considerations deemed relevant by the Board of Directors.

 

(d) Securities Authorized for Issuance under Equity Compensation Plan

 

The following table summarizes the equity compensation plans under which our securities have been or may be issued as of December 31, 2022.

 

Plan Category

 

Number of securities to

be issued

upon exercise

of outstanding options

and

warrants

 

 

Weighted-

average

exercise

price of

outstanding

options and

warrants

 

 

Number of securities remaining

available for

future issuance under equity compensation

plans

 

Equity compensation plans approved by security holders

 

 

0

 

 

$0

 

 

 

0

 

Equity compensation plan not approved by security holders

 

 

0

 

 

$0

 

 

 

0

 

 

At December 31, 2022, we did not have any equity compensation plans that were not approved by stockholders.

 

Transfer Agent

 

Our transfer agent is VStock Transfer, LLC., 18 Lafayette Place Woodmere, NY 11598. Their telephone number is (212) 828-8436.

 

Recent Sales of Unregistered Securities

 

During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants.

 

Rule 10B-18 Transactions

 

During the year ended December 31, 2022, there were no repurchases of the Company’s common stock by the Company.

 

ITEM 6. [RESERVED]

 

 
9

Table of Contents

 

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion of the results of our operations and financial condition should be read in conjunction with our financial statements and the related notes, which appear elsewhere in this report. The following discussion includes forward-looking statements. For a discussion of important factors that could cause actual results to differ from results discussed in the forward-looking statements, see "Forward Looking Statements."

 

Overview

 

LFC is a media company focused on the development, production, promotion and distribution of original entertainment which we plan to make commercially available predominantly through live entertainment events, as well as through digital home video, broadcast television networks, video-on-demand and digital media channels. As a result, we have ceased to be a shell company. Effective as of April 1, 2015, we changed our name to "Lingerie Fighting Championships, Inc.," (by virtue of the short form merger with our new LFC subsidiary) to reflect our new business focus.

 

Results of Operations

 

Year ended December 31, 2022 as compared to the Year ended December 31, 2021

 

Our operating results for the year ended December 31, 2022 and December 31, 2021, and the changes between those periods for the respective items are summarized as follows:

 

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 December 31,

 

 

Changes

 

Statement of Operations Data:

 

2022

 

 

2021

 

 

Amount

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$113,802

 

 

$95,436

 

 

$18,366

 

 

 

19%

Cost of services

 

 

(33,831 )

 

 

(96,245 )

 

 

62,414

 

 

(65

%)

Gross profit (loss)

 

 

79,971

 

 

 

(809 )

 

 

80,780

 

 

(9,985

%)

Total operating expenses

 

 

(269,212 )

 

 

(411,655 )

 

 

142,443

 

 

(35

%) 

Other income (expense)

 

 

1,966,946

 

 

 

(3,111,090 )

 

 

5,078,036

 

 

(163

%)

Net income (loss)

 

$1,777,705

 

 

$(3,523,554 )

 

$5,301,259

 

 

(150

%)

  

Revenues

 

We generated revenues of $113,802 and $95,436 for the year ended December 31, 2022 and 2021, respectively. The Company’s revenue derives from the development, promotion and distribution of our live events, televised entertainment programming, sponsorship and site subscription. The increase in revenues was attributed to an increase in live event revenue and advertising revenue.

 

Cost of Services

 

We incurred total cost of services of $33,831 and $96,245 for the year ended December 31, 2022 and 2021, respectively. The cost of services incurred consist of labor, material, equipment and subcontractor expenses.

 

Operating Expenses

 

We incurred total operating expenses of $269,212 and $411,655 for the year ended December 31, 2022 and 2021, respectively. The decrease in operating expenses was primarily due to the decrease in stock-based compensation expense, E-commerce expense and travel expense.

  

 
10

Table of Contents

 

Other Income (Expense)

 

We recognized other income of $1,966,946 and incurred other expense of $3,111,090 for the year ended December 31, 2022 and 2021, respectively. The increase in other income was mainly attributed to an increase in gain on changes in fair value of derivatives from the convertible notes and warrants and a decrease in amortization of debt discount during the year ended December 31, 2022.

 

Net Income (Loss)

  

We recognized net income of $1,777,705 and incurred net loss of $3,523,554 during the year ended December 31, 2022 and 2021, respectively. The increase in our net income was mainly attributed to the increase in other income, increase in gross profit and decrease in operating expenses.

  

Liquidity and Capital Resources

 

 

 

 December 31,

 

 

 December 31, 

 

 

Changes

 

Working Capital Data:

 

2022

 

 

2021

 

 

Amount

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$10,009

 

 

$41,981

 

 

$(31,972)

 

(76

%)

Current Liabilities

 

$4,914,627

 

 

$6,840,790

 

 

 

(1,926,163)

 

(28

%)

Working Capital Deficiency

 

$(4,904,618)

 

$(6,798,809)

 

 

1,894,191

 

 

(28

%)

   

At December 31, 2022, we had a working capital deficiency of $4,904,618 and an accumulated deficit of $9,943,437. The Company intends to fund future operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending December 31, 2023.

  

The ability of the Company to realize its business plan is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.

 

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The following table sets forth certain information about our cash flow during the year ended December 31, 2022 and December 31, 2021:

 

Year Ended

 December 31,

Changes

Cash Flows Data:

 

2022

 

2021

Amount

%

Cash Flows used in Operating Activities

$

(87,992)

$

(265,661)

$

177,669

(67%)

Cash Flows provided by Financing Activities

63,520

296,000

(232,480)

(79%)

Net increase (decrease) in cash during period

$

(24,472)

$

30,339

$

(54,811)

(181%)

  

Cash Flows from Operating Activities

 

We have not generated positive cash flows from operating activities.

 

 
11

Table of Contents

 

During the year ended December 31, 2022, net cash flows used in operating activities was $87,992, consisting of a net income of $1,777,705, decreased by gain on change in fair value of derivative liabilities of $2,302,899 and increased by amortization of debt discount of $124,904 and net changes in operating assets and liabilities of $312,298.

  

During the year ended December 31, 2021, net cash flows used in operating activities was $265,661, consisting of a net loss of $3,523,554, decreased by loss on change in fair value of derivative liabilities of $2,481,400, stock based compensation of $120,060, amortization of debt discount of $462,701 and note conversion fee $2,000 and net changes in operating assets and liabilities of $191,732.

 

Cash Flows from Investing Activities

 

There were no investing activities during the year ended December 31, 2022 and December 31, 2021.

 

Cash Flows from Financing Activities

 

During the year ended December 31, 2022 and December 31, 2021, net cash provided by financing activities was  $63,520 attributed to proceeds from issuance of convertible notes and $296,000 attributed to proceeds from the issuance of promissory notes.

 

Off-Balance Sheet Arrangements

 

As of December 31, 2022, we had no off-balance sheet arrangements.

 

Significant Accounting Estimates and Policies

 

The preparation of financial statements in accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. A change in managements’ estimates or assumptions could have a material impact on our financial condition and results of operations during the period in which such changes occurred. Actual results could differ from those estimates. Our financial statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.

 

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 606,”Revenue Recognition” following the five steps procedure:

 

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize revenue when the entity satisfies a performance obligation

 

Convertible Instruments and Derivatives

 

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities.”

 

Fair Value Measurement

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

 
12

Table of Contents

 

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

 

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 -

quoted prices in active markets for identical assets or liabilities

Level 2 -

quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 -

inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis.

 

Income Taxes

 

The Company accounts for income taxes pursuant to FASB ASC 740 “Income Taxes”. Pursuant to ASC 740 deferred income taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences, and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The provision for income taxes represents the tax expense for the period, if any, and the change during the period in deferred tax assets and liabilities. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

 

ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. Under ASC 740, the impact of an uncertain tax position on the income tax return may only be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority.

 

Recent accounting pronouncements

 

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt-Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its financial statements.

 

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. For the Company, the new standard was effective on January 1, 2021 and we do not expect the adoption of this guidance to have a material impact on our financial statements.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS.

 

We do not hold any derivative instruments and do not engage in any hedging activities.

 

 
13

Table of Contents

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

Page

 

 

Reports of Independent Registered Public Accounting Firm (PCAOB ID - 5041)

F-2

 

 

Balance Sheets at December 31, 2022 and 2021

F-3

 

 

Statements of Operations for the year ended December 31, 2022 and December 31, 2021

F-4

 

 

Statements of Changes in Stockholders' Deficit for the year ended December 31, 2022 and December 31, 2021

F-5

 

 

Statements of Cash Flows for the year ended December 31, 2022 and December 31, 2021

F-6

 

 

Notes to Financial Statements

F-7

 

 
F-1

Table of Contents

  

Report of Independent Registered Public Accounting Firm

 

 

To the shareholders and the board of directors of Lingerie Fighting Championships, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Lingerie Fighting Championships, Inc. (the "Company") as of December 31, 2022 and 2021, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

 

Substantial Doubt about the Company’s Ability to Continue as a Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. 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.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 

Critical Audit Matter

 

Critical audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

 

We determined that there are no critical audit matters.

 

/s/ BF Borgers CPA PC

BF Borgers CPA PC (PCAOB ID 5041)

We have served as the Company's auditor since 2018

Lakewood, CO

July 18, 2023

 

 
F-2

Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

BALANCE SHEETS

 

 

 

 December 31,

 

 

 December 31, 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$10,009

 

 

$34,481

 

Prepaid expenses

 

 

-

 

 

 

7,500

 

Total Current Assets

 

 

10,009

 

 

 

41,981

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$37,098

 

 

$20,849

 

Accounts payable - related party

 

 

542,668

 

 

 

465,168

 

Accrued interest payable

 

 

442,888

 

 

 

231,839

 

Promissory notes, net of $0 and $89,183 debt discount, respectively

 

 

340,000

 

 

 

250,817

 

Convertible notes, net of $34,800 and $0 debt discount, respectively

 

 

584,730

 

 

 

549,010

 

Derivative liabilities

 

 

2,967,243

 

 

 

5,323,107

 

Total Current Liabilities

 

 

4,914,627

 

 

 

6,840,790

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, 51 shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock, par value $0.001 per share, 5,000,000,000 shares authorized, 3,711,714,036 shares and 3,535,302,536 shares issued and outstanding, respectively

 

 

3,711,715

 

 

 

3,535,303

 

Additional paid-in capital

 

 

1,327,104

 

 

 

1,387,030

 

Accumulated deficit

 

 

(9,943,437)

 

 

(11,721,142)

Total stockholders' deficit

 

 

(4,904,618)

 

 

(6,798,809)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$10,009

 

 

$41,981

 

 

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

 

 
F-3

Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC. 

STATEMENTS OF OPERATIONS 

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Revenue

 

$113,802

 

 

$95,436

 

Cost of services

 

 

33,831

 

 

 

96,245

 

GROSS PROFIT (LOSS)

 

 

79,971

 

 

 

(809)

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

80,962

 

 

 

124,645

 

Professional fees

 

 

68,250

 

 

 

167,010

 

Management salaries

 

 

120,000

 

 

 

120,000

 

Total Operating Expenses

 

 

269,212

 

 

 

411,655

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

 

(189,241)

 

 

(412,464)

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

Interest expense

 

 

(335,953)

 

 

(629,690)

Gain (Loss) on change in fair value of derivative liabilities

 

 

2,302,899

 

 

 

(2,481,400)

Total Other Income (Expense)

 

$

1,966,946

 

 

$(3,111,090)

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

1,777,705

 

 

$(3,523,554)

 

 

 

 

 

 

 

 

 

Basic and Diluted Income (Loss) per Common Share

 

$0.00

 

 

$(0.00)

Diluted Earnings (Loss) per Common Share

 

$0.00

 

 

$(0.00)

Basic and Diluted Weighted Average Shares of Common Stock Outstanding

 

 

3,575,418,028

 

 

 

2,976,633,298

 

Diluted Weighted Average Shares of Common Stock Outstanding

 

 

9,239,631,986

 

 

 

8,882,874,843

 

 

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

 

 
F-4

Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

STATEMENTS OF STOCKHOLDERS’ DEFICIT

FOR THE YEAR ENDED DECEMBER 31, 2022 AND 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Total 

 

 

 

Common Stock

 

 

Preferred Shares

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders' 

 

 

 

Number of Shares

 

 

Amount

 

 

Number of Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Deficit 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance - December 31, 2020

 

 

2,339,101,663

 

 

$2,339,102

 

 

 

51

 

 

$-

 

 

$(20,381)

 

$(8,197,588)

 

$(5,878,867)

Shares of common stock issued for conversion of debts and accrued interest

 

 

862,061,953

 

 

 

862,062

 

 

 

-

 

 

 

-

 

 

 

(553,008)

 

 

-

 

 

 

309,054

 

Shares of common stock issued for exercise of warrants

 

 

267,438,920

 

 

 

267,439

 

 

 

-

 

 

 

-

 

 

 

(267,439)

 

 

-

 

 

 

(0)

Commitment stock issued under registration rights agreement

 

 

66,700,000

 

 

 

66,700

 

 

 

-

 

 

 

-

 

 

 

53,360

 

 

 

-

 

 

 

120,060

 

Write off of convertible notes and accrued interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

110,076

 

 

 

-

 

 

 

110,076

 

Derivative liabilities reclass to additional paid-in capital due to note conversion, warrant exercise and note written off

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,064,422

 

 

 

-

 

 

 

2,064,422

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,523,554)

 

 

(3,523,554)

Balance - December 31, 2021

 

 

3,535,302,536

 

 

$3,535,303

 

 

 

51

 

 

$-

 

 

$1,387,030

 

 

$(11,721,142)

 

$(6,798,809)

Shares of common stock issued for exercise of warrants

 

 

176,411,500

 

 

 

176,412

 

 

 

-

 

 

 

-

 

 

 

(59,926)

 

 

-

 

 

 

116,486

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,777,705

 

 

 

1,777,705

 

Balance - December 31, 2022

 

 

3,711,714,036

 

 

$3,711,715

 

 

 

51

 

 

$-

 

 

$1,327,104

 

 

$

(9,943,437

)

 

$(4,904,618)

 

The accompanying notes are an integral part of these audited financial statements

 

 
F-5

Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC. 

STATEMENTS OF CASH FLOWS 

 

 

 

Year Ended

 

 

 

 December 31,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net income (loss)

 

$1,777,705

 

 

$(3,523,554)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

-

 

Note payable issued as equity commitment fee

 

 

-

 

 

 

 

 

Stock - based compensation

 

 

-

 

 

 

120,060

 

Loss (Gain) on change in fair value of derivative liabilities

 

 

(2,302,899)

 

 

2,481,400

 

Amortization of debt discount

 

 

124,904

 

 

 

462,701

 

Note conversion fee

 

 

-

 

 

 

2,000

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expense

 

 

7,500

 

 

 

(7,500)

Accounts payable - related party

 

 

77,500

 

 

 

76,500

 

Accounts payable and accrued liabilities

 

 

16,249

 

 

 

(44,258)

Accrued interest payable

 

 

211,049

 

 

 

166,990

 

Net cash used in operating activities

 

 

(87,992)

 

 

(265,661)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from convertible debts

 

 

63,520

 

 

 

-

 

Proceeds from promissory notes

 

 

-

 

 

 

296,000

 

Net cash provided by financing activities

 

 

63,520

 

 

 

296,000

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

(24,472)

 

 

30,339

 

Cash and cash equivalents - beginning of period

 

 

34,481

 

 

 

4,142

 

Cash and cash equivalents - end of period

 

$10,009

 

 

$34,481

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Disclosures

 

 

 

 

 

 

 

 

Cash paid for interest

 

$-

 

 

$-

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

NON-CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Debt discount from derivative liabilities

 

$70,520

 

 

$265,000

 

Derivative liabilities reclass to additional paid-in capital due to note conversion, warrant exercise and note written off

 

$-

 

 

$2,064,422

 

Shares of common stock issued for conversion of debt and accrued interest

 

$-

 

 

$862,062

 

Shares of common stock issued for exercise of warrants

 

$176,412

 

 

$267,439

 

Write off of convertible notes and accrued interest

 

$-

 

 

$110,076

 

 

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

 

 
F-6

Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

NOTES TO AUDITED FINANCIAL STATEMENTS

DECEMBER 31, 2022

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Lingerie Fighting Championships, Inc. (the “Company”) is a Nevada corporation incorporated on November 29, 2006 under the name Sparking Events, Inc. The Company’s corporate name was changed to Xodtec Group USA, Inc. in June 2009, Xodtec LED, Inc. in May 2010, Cala Energy Corp. in September 2013 and Lingerie Fighting Championships, Inc. on April 1, 2015.

 

The Company focuses on developing, producing, promoting, and distributing entertainment through live entertainment events, digital home videos, broadcast television networks, video on demand, and digital media channels in the United States. It offers wrestling and mixed martial arts fights featuring women under the LFC brand name.

 

NOTE 2 – BASIS OF PRESENTATION AND ACCOUNTING POLICIES

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company uses the accrual basis of accounting and has adopted a December 31 fiscal year end.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates and judgments. The Company bases its estimates and judgments on historical experience and other factors that it believes to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $10,009 and $34,481 in cash and cash equivalents as at December 31 2022 and December 31, 2021, respectively.

 

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 606, “Revenue Recognition” following the five steps procedure:

 

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize revenue when the entity satisfies a performance obligation

 

 
F-7

Table of Contents

 

The Company’s revenue derives from the development, promotion and distribution of live events and televised entertainment programming and also through sponsorship and site subscription. For the year ended December 31, 2022 and 2021, the Company recognized revenue of $113,802 and $95,436 and incurred cost of sales of $33,831 and $96,245, resulting in gross profit of $79,971 and gross loss of $809, respectively.

 

Earnings (Loss) per Share

 

The Company computes basic and diluted net loss per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted loss per share reflects the potential dilution that could occur if convertible notes to issue common stock were converted resulting in the issuance of common stock that could share in the loss of the Company.

 

For the year ended December 31, 2022 and 2021, convertible notes and warrants were dilutive instruments and were included in the calculation of diluted earnings per share.

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Shares)

 

 

(Shares)

 

Convertible notes payable

 

 

2,398,622,720

 

 

 

1,220,824,879

 

Warrants

 

 

3,265,591,238

 

 

 

4,685,416,666

 

 

 

 

5,664,213,958

 

 

 

5,906,241,545

 

 

Related Party Balances and Transactions

 

The Company follows FASB ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transaction. (See Note 9)

 

Convertible Instruments and Derivatives

 

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities.”

 

Share-Based Compensation

 

The Company measures the cost of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Employee awards are accounted for under ASC 718 - where the awards are valued at grant date. Awards given to nonemployees are accounted for under ASC 505 where the awards are valued at earlier of commitment date or completion of services. Compensation cost for employee awards is recognized over the vesting or requisite service period. The Black-Scholes option-pricing model is used to estimate the fair value of options or warrants granted.

 

Fair Value Measurement

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

 

 
F-8

Table of Contents

 

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 –

quoted prices in active markets for identical assets or liabilities

Level 2 –

quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 –

inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis. (See Note 8)

 

The following table summarizes fair value measurement by level at December 31, 2022 and December 31, 2021, measured at fair value on a recurring basis:

 

December 31, 2022

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

2,967,243

 

 

 

2,967,243

 

 

December 31, 2021

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

5,323,107

 

 

 

5,323,107

 

 

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For the Company, the new standard was effective on January 1, 2021 and the adoption of this guidance to have a material impact on our financial statements.

 

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. For the Company, the new standard was effective on January 1, 2021 and the adoption of this guidance to have a material impact on our financial statements.

 

 
F-9

Table of Contents

 

 

Management has considered all other recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

 

NOTE 3 – GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with GAAP, which contemplate continuation of the Company as a going concern. The Company has generated nominal revenues since inception, has sustained losses since its organization and requires funding to generate revenue. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern.

 

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company can give no assurances that it can or will become financially viable and continue as a going concern.

 

NOTE 4 – STOCKHOLDERS DEFICIT

 

Preferred Stock

 

The authorized preferred stock consists of 10,000,000 shares with a par value $0.001 per share. The board of directors has broad discretion in setting the rights, preferences and privileges of one or more series of preferred stock.

 

On September 3, 2016, the Company issued 51 Series A preferred shares to the Chief Executive Officer. The Series A preferred shares have voting rights, resulting in the Series A stockholder holding in aggregate approximately 51% of the total voting power of all issued and outstanding voting capital of the Company. The valuation of the preferred shares was completed by the Company based on the change in voting percentage rights before and after the Series A shares were issued. The value of the Series A shares is $42,669 and was expensed.

 

There were 51 and 51 preferred shares issued and outstanding as at December 31, 2022 and December 31, 2021, respectively.

 

Common Stock

 

The Company has authorized 5,000,000,000 shares with a par value $0.001 per share.

 

During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company issued 862,061,953 shares of common stock for the conversion of convertible note of $139,132 and accrued interest of $167,920.

 

During the year ended December 31, 2021, the Company issued 267,438,920 shares of common stock for the exercise of 281,500,000 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company issued 66,700,000 shares of common stock as commitment stock to a noteholder under registration rights agreement in relations to the filing of S-1.

 

As of December 31, 2022 and December 31, 2021, the shares of common stock issued and outstanding was 3,711,714,036 and 3,535,302,536. respectively

 

 
F-10

Table of Contents

 

NOTE 5 – WARRANTS

 

The below table summarizes the activity of warrants exercisable for shares of common stock during the year ended December 31, 2022 and 2021:

 

 

 

 Number of Shares

 

 

 Weighted- Average Exercise Price

 

Balances as of December 31, 2020

 

 

5,438,166,666

 

 

$0.0001

 

Granted

 

 

400,000,000

 

 

 

0.0002

 

Redeemed

 

 

-

 

 

 

-

 

Exercised

 

 

(281,500,000)

 

 

0.0003

 

Forfeited

 

 

-

 

 

 

-

 

Balances as of December 31, 2021

 

 

5,556,666,666

 

 

$0.0001

 

Granted

 

 

282,080,000

 

 

 

0.0005

 

Redeemed

 

 

-

 

 

 

-

 

Exercised

 

 

(201,613,143)

 

 

0.0001

 

Forfeited

 

 

-

 

 

 

-

 

Balances as of December 31, 2022

 

 

5,637,133,523

 

 

$0.0001

 

 

During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company issued 267,438,920 shares of common stock for the exercise of 281,500,000 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company granted 400,000,000 units of share purchase warrants in conjunction to the issuance of promissory note noteholders totaling $340,000.

 

The fair value of each warrant on the date of grant is estimated using the Black-Scholes option valuation model. The following weighted-average assumptions were used for warrants granted during the year ended December 31, 2022 and 2021:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Exercise price

 

$0.0001 - $0.0008

 

 

$0.0001 - $0.0008

 

Expected term

 

2.98 years

 

 

3.79 years

 

Expected average volatility

 

180% - 365%

 

 

350% - 417%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

2.28% - 4.27%

 

 

0.18% - 1.26%

 

 

The following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2022:

 

Warrants Outstanding

 

 

Warrants Exercisable

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

Number

 

 

Remaining Contractual

 

 

Weighted Average

 

 

Number

 

 

Weighted Average

 

of Shares

 

 

life (in years)

 

 

Exercise Price

 

 

of Shares

 

 

Exercise Price

 

 

5,637,133,523

 

 

 

2.98

 

 

$0.0001

 

 

 

5,048,386,857

 

 

$0.0001

 

 

 
F-11

Table of Contents

 

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at December 31, 2022 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). As of December 31, 2022, the aggregate intrinsic value of warrants outstanding was approximately $976,677 based on the closing market price of $0.0003 on December 31, 2022.

 

The Company determined that the warrants qualify for derivative accounting as a result of the related issuance of the convertible notes. As of December 31, 2022 and 2021, the Company valued the fair value on the 5,637,133,523 units and 5,556,666,666 units of common stock purchase warrants granted at $1,683,773 and $4,444,017 based on Black-Scholes option valuation model, respectively.

 

NOTE 6 – PROMISSORY NOTES

 

The Company had the following promissory notes payable as at December 31, 2022 and December 31, 2021:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

Promissory Notes to Auctus Fund

 

$340,000

 

 

$340,000

 

Less Debt Discount

 

 

-

 

 

 

(89,183)

Total Promissory Notes

 

$340,000

 

 

$250,817

 

 

On March 4, 2021, the Company entered into an agreement with Auctus Fund, LLC to issue a senior secured promissory note of $300,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on March 4, 2022. In conjunction with the convertible note, the Company issued warrants to purchase 150,000,000 shares of common stock, exercisable for five years from issuance at $0.002 per share and returnable warrants to purchase 150,000,000 shares of common stock, exercisable for five years form issuance at $0.002 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date. (See Note 5) The note was discounted for original issued discount of $35,000 and a derivative on warrants of $265,000 for an aggregate discount of $300,000, which is being amortized over the life of the note using the effective interest method resulting in $248,077 of debt discount amortization for the year ended December 31, 2021. As of December 31, 2022 and 2021, the note is presented at $300,000 and $248,077, net of debt discount of $0 and $89,183, respectively.

 

On December 6, 2021, the Company entered into an agreement with Auctus Fund, LLC to issue a senior secured promissory note of $40,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on December 6, 2022. In conjunction with the convertible note, the Company issued first common stock purchased warrants to purchase 50,000,000 shares of common stock, exercisable for five years from issuance at $0.0008 per share and second common stock purchased warrants to purchase 50,000,000 shares of common stock, exercisable for five years form issuance at $0.0008 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date. (See Note 5) The note was discounted for original issued discount of $9,000 and a derivative on warrants of $31,000 for an aggregate discount of $40,000, which is being amortized over the life of the note using the effective interest method resulting in $2,740 of debt discount amortization for the year ended December 31, 2021. As of December 31, 2022 and 2021, the note is presented at $40,000 and $2,740, net of debt discount of $0 and $37,260, respectively.

 

During the year ended December 31, 2022 and 2021, interest expense of $52,800 and $33,008 was incurred on the promissory notes. As of December 31, 2022 and December 31, 2021, accrued interest payable on the promissory note was $85,809 and $33,008, respectively.

 

 
F-12

Table of Contents

 

NOTE 7 - CONVERTIBLE NOTES

 

The Company had the following unsecured convertible notes payable as at December 31, 2022 and December 31, 2021:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

Convertible Promissory Notes to Auctus Fund

 

$584,729

 

 

$549,010

 

Total Convertible Debts

 

$584,729

 

 

$549,010

 

 

Promissory Notes Payable to Auctus Fund

 

Auctus #1

 

On May 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $67,750 with a $7,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $60,000 is being amortized over the life of the note using the effective interest method resulting in $0 and $14,542 of interest expense for the year ended December 31, 2018 and December 31, 2017, respectively.

 

During the year ended December 31, 2017, principal of $15,278 and accrued interest of $5,975 were converted into 111,460,000 shares of common stock.

 

During the year ended December 31, 2018, accrued interest of $2,494 were converted into 133,258,300 shares of common stock.

 

During the year ended December 31, 2019, principal of $40,241 and accrued interest of $1,153 were converted into 1,066,179,950 shares of common stock.

 

During the year ended December 31, 2020, accrued interest of $12,717 were converted into 317,919,774 shares of common stock.

 

During the year ended December 31, 2021, principal of $3,746 and accrued interest of $5,834 were converted into 239,266,512 shares of common stock.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $1,265 and $1,265, respectively.

 

This note is currently in default.

 

Auctus #2

 

On September 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $56,750 with a $6,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $50,000 is being amortized over the life of the note using the effective interest method resulting in $0 and $35,607 of interest expense for the year ended December 31, 2018 and year ended December 31, 2017, respectively.

 

On July 7, 2017, note amendment was executed with $20,000 increase in principal of the note and the note principal increased to $76,750. The Company received $20,000 cash proceeds from the note amendment on the same date.

 

During the year ended December 31, 2021, principal of $76,750 and accrued interest of $83,128 were converted into 288,590,075 shares of common stock.

 

As of December 31, 2022 and 2021, the notes were fully paid off through the issuance of common stock.

 

 
F-13

Table of Contents

 

Auctus #3

 

On January 13, 2017, the Company entered into an agreement with Power Up Lending Group to issue a convertible promissory note of 45,000 with a $2,500 original issue discount to the unrelated party, which bears interest at 8% of the principal amount. The promissory note matures on January 13, 2018. The conversion price shall be equal to 57.5% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The note was discounted for a derivative and the discount of $45,000 is being amortized over the life of the note using the effective interest method. Total of $0 and $40,843 of the discount was recorded as interest expense for the year ended December 31, 2018 and the year ended December 31, 2017.

 

During the year ended December 31, 2017, principal of $6,700 was converted into 30,455,486 shares of common stock.

 

On June 14, 2017, the Company entered into an agreement with Power Up Lending Group to issue a convertible promissory note of $7,500 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matured on March 20, 2018. The conversion price shall be equal to 50% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The note was discounted for a derivative and the discount of $7,500 is being amortized over the life of the note using the effective interest method. Total of $0 and $4,462 of the discount was recorded as interest expense for the year ended December 31, 2018 and the year ended December 31, 2017.

 

On November 27, 2017, Auctus Fund, LLC entered into an agreement with Power Up Lending Group Ltd. to buy out the total outstanding principal amount and accrued interest of the two convertible promissory notes at $50,774.54. The note bears interest at 12% of the principal amount and matured on March 20, 2018. The conversion price shall be equal 57.5% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. During the year ended December 31, 2018 and the year ended December 31, 2017, interest expense of $5,030 and $2,165 was recorded over the remaining note discount transferred the two convertible notes of $7,195.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $50,745.

 

This note is currently in default.

 

Auctus #4

 

On November 2, 2017, the Company entered into an agreement to issue a convertible promissory note of $53,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on August 2, 2018. The conversion price shall be equal to 50% of the lowest trading price of the Company’s common stock during the 25 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The note was discounted for a derivative and the discount of $53,000 is being amortized over the life of the note using the effective interest method. Total of $41,546 and $11,454 of the discount was recorded as interest expense for the year ended December 31, 2018 and the year ended December 31, 2017. On February 23, 2018, EMA Financial LLC and Auctus Fund, LLC each made repayment to Crown Bridge Partners, LLC on behalf of the Company at $5,636.04 to settle the total outstanding principal and accrued penalty amount at $11,272.08 of the $40,000 convertible note. As a result, the principal amount of the $53,000 convertible note increased to $58,636.04.

 

During the year ended December 31, 2021, principal of $58,636 and accrued interest of $52,583 were converted into 166,178,366 shares of common stock.

 

As of December 31, 2022, the notes were fully paid off through the issuance of common stock.

 

 
F-14

Table of Contents

 

Auctus #5

 

On March 7, 2018, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $30,000 with a $5,000 original issue discount. The convertible promissory note bears interest at 12% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $30,000 is being amortized over the life of the note using the effective interest method resulting in $30,000 of interest expense for the year ended December 31, 2018.

 

During the year ended December 31, 2021, accrued interest of $26,384 were converted into 168,027,000 shares of common stock.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $30,000.

 

This note is currently in default.

 

Auctus #6

 

On July 9, 2018, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $43,500 with a $5,000 original issue discount. On July 25, 2018, the convertible promissory note was further amended with principal increased to $48,500. The convertible promissory note bears interest at 12% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $48,500 is being amortized over the life of the note using the effective interest method resulting in $17,524 and $30,976 of interest expense for the year ended December 31, 2019 and the year ended December 31, 2018, respectively. In conjunction with the convertible note, the Company issued warrants to purchase 72,500,000 shares of common stock, exercisable for five years from issuance at $0.0003 per share.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $48,500.

 

This note is currently in default.

 

Auctus #7

 

On March 22, 2019, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $62,500 with a $9,000 original issue discount. The convertible promissory note bears interest at 12% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $62,500 is being amortized over the life of the note using the effective interest method resulting in $62,500 of interest expense for the year ended December 31, 2019. In conjunction with the convertible note, the Company issued warrants to purchase 209,000,000 shares of common stock, exercisable for five years from issuance at $0.0003 per share.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $62,500.

 

This note is currently in default.

 

Auctus#8

 

On October 23, 2019, the Company entered into an agreement to issue a convertible promissory note of $100,000 to the unrelated party, which bears interest at 12% per annum and matures nine months from issue date. The conversion price shall be equal to the lesser of (i) 50% multiplied by the lowest Trading Price during the previous twenty-five Trading Day period ending on the latest complete Trading Day prior to the date of this Note and (ii) the Variable Conversion Price, that is 50% multiplied by the Market Price, being the lowest Trading Price for the Common Stock during the twenty-five Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. The note was discounted for a derivative and the discount of $100,000 is being amortized over the life of the note using the effective interest method resulting in $25,182 of interest expense for the year ended December 31, 2019. In conjunction with the convertible note, the Company issued warrants to purchase 50,000,000 shares of common stock, exercisable for five years from issuance at $0.0001 per share. During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants. As of December 31, 2022, the outstanding units of warrants was 298,398,857.

 

 
F-15

Table of Contents

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $100,000.

 

This note is currently in default.

 

Auctus#9

 

On August 4, 2020, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $31,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on August 4, 2021. The note is to be repaid by six equal payments commencing on the sixth month anniversary of issuance and due monthly thereafter. The conversion price shall be equal to the lesser of (i) the lowest Trading Price during the previous five trading date period ending on the latest completed trading Day prior to the date of this Note and (ii) Variable Conversion Price, that is Market Price being the volume weighted average price (VWAP) for the Common Stock during the five trading day period ending on the latest complete trading day prior to the conversion date. The note was discounted for a derivative and the discount of $31,000 is being amortized over the life of the note using the effective interest method. In conjunction with the convertible note, the Company issued warrants to purchase 206,666,666 shares of common stock, exercisable for five years from issuance at $0.0003 per share.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $31,000.

 

This note is currently in default.

 

Auctus#10

 

On November 2, 2020, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $225,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on November 2, 2021. The note is to be repaid by six equal payments commencing on the sixth month anniversary of issuance and due monthly thereafter. The conversion price shall be equal to the lesser of (i) the lowest Trading Price and (ii) Variable Conversion Price, that is Market Price being the lowest trading price for the common stock during the one trading day period ending on the latest complete trading day prior to the conversion date. The note was discounted for a derivative and the discount of $225,000 is being amortized over the life of the note using the effective interest method. In conjunction with the convertible note, the Company issued warrants to purchase 2,225,000,000 shares of common stock, exercisable for five years from issuance at $0.0001 per share and returnable warrants to purchase 2,225,000,000 shares of common stock, exercisable for five years form issuance at $0.0001 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $225,000.

 

This note is currently in default.

 

Auctus#13

 

On May 12, 2022, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $52,000 to the unrelated party, which bears interest at 12% of the principal amount. The convertible promissory note matures on May 12, 2023. The note is convertible into common shares of $0.0005 per share. The note was discounted for a derivative and the discount of $52,000 is being amortized over the life of the note using the effective interest method. During the year months ended December 31, 2022, the amortization of note discount was $32,625. As of December 31, 2022, the unamortized note discount was $19,375. In conjunction with the convertible note, the Company issued warrants to purchase 104,000,000 shares of common stock (“First Warrant”), exercisable for five years from issuance at $0.0005 per share and warrants to purchase 104,000,000 shares of common stock (“Second Warrant”), exercisable for five years form issuance at $0.0005 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $32,625 and $0, respectively.

 

 
F-16

Table of Contents

 

Auctus#14

 

On October 31, 2022, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $18,520. The convertible promissory note matures on October 31, 2023 and bears annual interest rate at 12%. The note is convertible into common shares of $0.0005 per share. The note was discounted for a derivative and the discount of $18,520 is being amortized over the life of the note using the effective interest method. During the year months ended December 31, 2022, the amortization of note discount was $3,095. As of December 31, 2022, the unamortized note discount was $15,425.  In conjunction with the convertible note, the Company issued warrants to purchase 37,040,000 shares of common stock (“First Warrant”), exercisable for five years from issuance at $0.0005 per share and warrants to purchase 104,000,000 shares of common stock (“Second Warrant”), exercisable for five years form issuance at $0.0005 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $3,095 and $0, respectively.

 

Accrued interest on convertible notes

 

During the year ended December 31, 2022 and 2021, interest expense of $158,249 and $133,981 was incurred on convertible notes, respectively. As of December 31, 2022 and December 31, 2021, accrued interest payable on convertible notes was $357,080 and $198,831, respectively.

 

Summary of Conversions

 

During the year ended December 31, 2021, the Company issued 862,061,953 shares of common stock for the conversion of convertible note of $139,132 and accrued interest of $167,920.

 

NOTE 8 - DERIVATIVE LIABILITY

 

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective.

 

The following table summarizes the derivative liabilities included in the balance sheet at December 31, 2022:

 

Balance - December 31, 2021

 

$5,323,107

 

Addition of new derivative liabilities upon issuance of convertible notes as debt discount

 

 

(67,670)

Reduction of derivative liabilities from exercise of warrants

 

 

(116,486)

Addition of new derivative liabilities upon issuance of warrants as debt discount

 

 

131,190

 

Addition of new derivatives liabilities recognized as day one loss on warrants

 

 

125,714

 

Loss (Gain) on change in fair value of the derivative

 

 

(2,428,612)

Balance - December 31, 2022

 

$

2,967,243

 

 

The following table summarizes the loss (gain) on derivative liability included in the income statement for the year ended December 31, 2022 and 2021, respectively.

 

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Day one loss due to derivative liabilities on convertible notes and warrants

 

$125,714

 

 

$385,964

 

Loss (Gain) on change in fair value of derivative liabilities on convertible notes and warrants

 

 

(2,428,613)

 

 

2,095,436

 

Loss (Gain) on change in fair value of derivative liabilities

 

$(2,302,899)

 

$2,481,400

 

 

 
F-17

Table of Contents

 

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability for convertible notes at each measurement date:

 

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Expected term

 

0.37 - 0.82 years

 

 

 

-

 

Expected average volatility

 

223% - 349%

 

 

95% - 472%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

2.07% - 4.73%

 

 

0.03% - 0.97%

 

 

NOTE 9 - RELATED PARTY TRANSACTIONS

 

During the year ended December 31, 2022, the Company accrued $120,000 of salary payable to the Director of the Company and paid $42,500 owing to him for the accrued salaries.

 

During the year ended December 31, 2021, the Company accrued $120,000 of salary payable to the Director of the Company and paid $43,500 owing to him for the accrued salaries.

 

As of December 31, 2022 and December 31, 2021, amount due to the related party was $542,668 and $465,168, respectively.

 

NOTE 10 - INCOME TAX

 

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of December 31, 2022 and 2021, are as follows:

 

 

 

 December 31, 2022

 

 

 December 31, 2021

 

Net operating loss carryforward

 

$4,345,599

 

 

$3,820,405

 

Statutory tax Rate

 

 

21%

 

 

21%

Deferred tax asset

 

 

912,576

 

 

 

802,285

 

Less: Valuation allowance

 

 

(912,576)

 

 

(802,285)

Net deferred assets

 

$-

 

 

$-

 

 

As of December 31, 2022, the Company had approximately $4.3 million in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2034 and 2037. NOLs generated in tax years prior to December 31, 2017, can be carryforward for twenty years, whereas NOLs generated after December 31, 2017 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2014 through 2022 are subject to review by the tax authorities.

 

 
F-18

Table of Contents

  

NOTE 11 - SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the December 31, 2022 to the date these financial statements were issued and has determined that it has the below subsequent events:

 

On January 4, 2023, the Company issued a convertible note to Auctus Fund, LLC for proceeds of $25,000.

 

 
F-19

Table of Contents

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None.

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures

 

As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report, being December 31, 2022. This evaluation was carried out under the supervision and with the participation of our management, including our President and Chief Financial Officer (our principal executive officer and principal accounting officer).

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our President and Chief Financial Officer, to allow timely decisions regarding required disclosure.

 

Based upon that evaluation, including our President and Chief Financial Officer, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this annual report.

 

Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934). Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2022 based on criteria established in Internal Control-Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, management concluded that, as of December 31, 2022, our internal control over financial reporting was not effective. Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

 

 
14

Table of Contents

 

We plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we hope to implement the following changes during our fiscal year ending December 31, 2022: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out in (i) and (ii) are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

 

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm because as a smaller reporting company we are not subject to Section 404(b) of the Sarbanes‑Oxley Act of 2002.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in our company’s internal control over financial reporting during the quarter ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Limitations on the Effectiveness of Internal Controls

 

Our management, which consists of our sole officer, does not expect that our disclosure controls and procedures or our internal control over financial reporting are or will be capable of preventing or detecting all errors or all fraud. Any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. 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. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements, due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns may occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of controls. The design of any system of controls is based in part on 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. Projections of any evaluation of controls effectiveness to future periods are subject to risk.

 

ITEM 9B. OTHER INFORMATION

 

None.

 

 
15

Table of Contents

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

The Board of Directors and Executive Officers of the Company

 

The following table and text sets forth the names and ages of all our directors and executive officers and our key management personnel as of the date hereof. All of our directors serve until the next annual meeting of stockholders and until their successors are elected and qualified, or until their earlier death, retirement, resignation or removal. Executive officers serve at the discretion of the Board of Directors.

 

Name

 

Age

 

Position

Shaun Donnelly

 

55

 

Chief Executive Officer, Chief Financial Officer and Director

 

Set forth below is a brief description of the background and business experience of our sole officer and director.

 

Shaun Donnelly, age 55, Chief Executive Officer, Director

 

Mr. Donnelly is an entertainment industry veteran who has created, produced and directed television series for such networks as Starz, AMI, ITV, Playboy TV, UKTV and YouToo. Mr. Donnelly served as LFC’s chief executive officer and sole director of LFC since its inception on July 21, 2014, and from April 2013 to July 2014, Mr. Donnelly operated a business similar to LFC's as a sole proprietorship, during which time he produced two events. Since 2005, Mr. Donnelly has served as the head of Canada’s Mind Engine Entertainment, where he has produced several feature films including the recently completed “Gone By Dawn.” Prior to getting into TV and film, Mr. Donnelly worked in the advertising industry where, in 1993, he founded Stormedia Communications, an Edmonton-based ad agency that specialized in oil and gas clients. He also published the literary digest Writer's Block Magazine for seven years and has worked as a writer and columnist for numerous magazines and newspapers. Mr. Donnelly attended Grant MacEwan University where he earned diplomas in Advertising & Public Relations and Audio Visual Communications. Mr. Donnelly does not believe that his duties with Mind Engine Entertainment will interfere with his duties as our chief executive officer.

 

Family Relationships

 

Since Mr. Donnelly is our sole officer and director, there are no family relationships between any of our officers or directors.

 

Compliance with Section 16(A) of the Exchange Act

 

Section 16(a) of the Exchange Act requires the Company’s directors, executive officers and persons who beneficially own 10% or more of a class of securities registered under Section 12 of the Exchange Act to file reports of beneficial ownership and changes in beneficial ownership with the SEC. Directors, executive officers and greater than 10% stockholders are required by the rules and regulations of the SEC to furnish the Company with copies of all reports filed by them in compliance with Section 16(a).

 

Based solely on our review of certain reports filed with the Securities and Exchange Commission pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended, the reports required to be filed with respect to transactions in our common stock during the fiscal year ended December 31, 2022, were timely.

 

Board Committees

 

We have no audit, compensation or nominating committee. The functions of these committees are performed by our sole director. We do not have any independent directors.

 

Code of Ethics

 

We have not adopted a code of ethics as of the date of this report.

 

 
16

Table of Contents

 

Legal Proceedings

 

To the best of our knowledge, none of our directors or executive officers has, during the past ten years:

 

 

·

been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

 

 

 

·

had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

 

 

 

 

·

been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

 

 

·

been found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

 

 

 

 

·

been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

 

 

 

 

·

been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

 

Except as set forth in our discussion below in “Certain Relationships and Related Transactions,” none of our directors or executive officers has been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the Commission.

 

ITEM 11. EXECUTIVE COMPENSATION

 

The following summary compensation table indicates the cash and non-cash compensation earned during the years ended December 31, 2022 and 2021 by each person who served as chief executive officer and chief financial officer during the year ended December 31, 2022.

 

SUMMARY COMPENSATION TABLE

 

Name and Principal Position

 

Year

 

Salary

($)

 

 

Bonus

($)

 

 

Stock

Awards ($)

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shaun Donnelly, Chief Executive Officer,

 

2022

 

$120,000

 

 

$-

 

 

$-

 

 

$120,000

 

Chief Financial Officer and Director (1)

 

2021

 

$120,000

 

 

 

--

 

 

$--

 

 

$120,000

 

____________

 

1.

Mr. Donnelly accrued compensation at the rate of $10,000 per month. On September 3, 2016, Mr. Donnelly was issued 51 Series A preferred shares valued at $42,669.

 

 
17

Table of Contents

 

Executive Employment Contracts

 

The Company entered into an employment agreement dated October 1, 2016 with Shaun Donnelly. Pursuant to the agreement, Mr. Donnelly will continue to be employed as Chief Executive Officer of the Company. The initial term of the Employment Agreement is for a period of twelve (12) months (the “Initial Term”).

 

During the Initial Term, the Company will pay Mr. Donnelly a monthly base compensation of $10,000. The base salary shall accrue each month when due to Mr. Donnelly pursuant to the terms as stated in the Employment Agreement, it being understood that the Company may refrain from making cash payment of the base salary to Mr. Donnelly for those months in which the Company does not have the cash and/or funds available to satisfy the base salary obligation to Mr. Donnelly. All amounts of base salary that remain unpaid but due and owing to Mr. Donnelly at the end of each calendar month shall accrue or may be converted into shares of the Company’s common stock.

 

Effective September 30, 2017, the Company and Mr. Donnelly entered into an amendment to the Employment Agreement. Pursuant to the terms of the amendment, the employment contact term is for a twelve month term, which term shall automatically renew yearly for an additional twelve (12) month term unless agreement is terminated in writing by Company within thirty (30) days of expiration of term. In addition, the amendment also adds the responsibility and duty of Chief Financial Officer to Mr. Donnelly.

 

Compensation of Directors

 

Currently, members of our Board of Directors receive no compensation.

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table sets forth, as of July 13, 2023, certain information with respect to the beneficial ownership of our common stock by each shareholder known by us to be the beneficial owner of more than 5% of our Common Stock and by each of our current directors and executive officers. Each person has sole voting and investment power with respect to the shares of Common Stock, except as otherwise indicated.

 

Under the rules of the Securities and Exchange Commission, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest.

 

Shares of Common Stock which an individual or group has a right to acquire within 60 days pursuant to the exercise or conversion of options are deemed to be outstanding for the purpose of computing the percentage ownership of such individual or group, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person shown in the table below.

 

Name of Beneficial Owner (1)

 

Shares of

Series A

Preferred (3)

 

 

Percent of

Series A

Preferred (2)

 

 

Shares of

Common

Stock

 

 

Percent of

Common

Stock (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shaun Donnelly

 

 

51

 

 

 

100%

 

 

9,350,000

 

 

 

0.252%

Chief Executive Officer, Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All officers and directors as a group (1 person)

 

 

51

 

 

 

100%

 

 

9,350,000

 

 

 

0.252%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of beneficial owner (5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
18

Table of Contents

 

None

 

(1)

Beneficial ownership is determined in accordance with Rule 13D-3(a) of the Exchange Act and generally includes voting or investment power with respect to securities.

 

 

(2)

The percentages in the table have been calculated on the basis of treating as outstanding for a particular person, all shares of our common stock outstanding on that date and all shares of our common stock issuable to that holder in the event of exercise of outstanding options, warrants, rights or conversion privileges owned by that person at that date which are exercisable within 60 days of that date. Except as otherwise indicated, the persons listed below have sole voting and investment power with respect to all shares of our common stock owned by them, except to the extent that power may be shared with a spouse. Based on 3,535,302,536 share equivalents of common stock as of March 28, 2022.

 

(3)

Each one share of the Series A Preferred Stock has voting rights equal to (x) 0.019607 multiplied by the total issued and outstanding shares of common stock of the Company eligible to vote at the time of the respective vote (the “Numerator”), divided by (y) 0.49, minus (z) the Numerator. For purposes of illustration only, if the total issued and outstanding shares of common stock of the Company eligible to vote at the time of the respective vote is 5,000,000, the voting rights of one share of the Series A Preferred Stock shall be equal to 102,036 (0.019607 x 5,000,000) / 0.49) - (0.019607 x 5,000,000) = 102,036). The Series A Preferred Stock has no dividend rights, no liquidation rights and no redemption rights, and was created primarily to be able to obtain a quorum and conduct business at shareholder meetings.

 

The address for Mr. Donnelly is c/o Lingerie Fighting Championships, Inc., 6955 North Durango Drive, Suite 1115-129, Las Vegas 89149.

 

Changes in Control

 

We are not aware of any arrangements that may result in “changes in control” as that term is defined by the provisions of Item 403(c) of Regulation S-K.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

None of our officers, directors, proposed director nominees, beneficial owners of more than 10% of our shares of common stock, or any relative or spouse of any of the foregoing persons, or any relative of such spouse who has the same house as such person or who is a director or officer of any parent or subsidiary of our Company, has any direct or indirect material interest in any transaction to which we are a party since our incorporation or in any proposed transaction to which we are proposed to be a party other than described below.

 

During the year ended December 31, 2022, the Company accrued $120,000 of salary payable to the Director of the Company and paid $42,500 owing to him for the accrued salaries.

 

During the year ended December 31, 2021, the Company accrued $120,000 of salary payable to the Director of the Company and paid $43,500 owing to him for the accrued salaries.

 

 
19

Table of Contents

 

Director Independence

 

Since our common stock is not currently listed on a national securities exchange, we have used the definition of “independence” of The NASDAQ Stock Market to make this determination. NASDAQ Listing Rule 5605(a)(2) provides that an “independent director” is a person other than an officer or employee of the company or any other individual having a relationship that, in the opinion of the company’s board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The NASDAQ listing rules provide that a director cannot be considered independent if:

 

 

·

the director is, or at any time during the past three years was, an employee of the company;

 

 

 

 

·

the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);

 

 

·

a family member of the director is, or at any time during the past three years was, an executive officer of the company;

 

 

 

 

·

the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);

 

 

 

 

·

the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other entity; or

 

 

 

 

·

The director or a family member of the director is a current partner of the company’s outside auditor, or at any time during the past three years was a partner or employee of the company’s outside auditor, and who worked on the company’s audit.

 

 

 

 

·

Based upon the above criteria, we have no independent directors.

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

The following table sets forth the fees billed by our principal independent accountants for each of our last two fiscal years for the categories of services indicated.

 

 

 

Year Ended December 31,

 

Category

 

2022

 

 

2021

 

Audit Fees (1)

 

$33,000

 

 

$22,000

 

Audit Related Fees (2)

 

$21,500

 

 

$16,200

 

Tax Fees (3)

 

$--

 

 

$--

 

All Other Fees (4)

 

$--

 

 

$--

 

__________

(1)

Consists of fees billed for the audit of our annual financial statements, review of our Form 10-K and services that are normally provided by the accountant in connection with year-end statutory and regulatory filings or engagements.

 

 

(2)

Consists of fees billed for the review of our quarterly financial statements, review of our forms 10-Q and 8-K and services that are normally provided by the accountant in connection with non-year end statutory and regulatory filings on engagements.

 

 

(3)

Consists of professional services rendered by a company aligned with our principal accountant for tax compliance, tax advice and tax planning.

 

 

(4)

The services provided by our accountants within this category consisted of advice and other services relating to SEC matters, registration statement review, accounting issues and client conferences.

 

 
20

Table of Contents

 

ITEM 15. OTHER INFORMATION

 

Legal Proceedings

 

We are not currently involved in any litigation that we believe could have a materially adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our Company, our common stock, any of our subsidiaries or of our Company’s or our Company’s subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

However, from time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

 

Risk Factors

 

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

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Defaults Upon Senior Securities

 

As of December 31, 2022, total note payable amount of $549,010 in default as follows:

 

 

 

Issuance date

 

Expire date

 

Amount at default

 

Auctus#1

 

5/20/2016

 

2/20/2017

 

$1,265

 

Auctus#3

 

11/27/2017

 

3/20/2018

 

$50,745

 

Auctus#5

 

3/7/2018

 

12/7/2018

 

$30,000

 

Auctus#6

 

7/9/2018

 

4/9/2019

 

$48,500

 

Auctus#7

 

3/22/2019

 

12/22/2019

 

$62,500

 

Auctus#8

 

10/23/2019

 

7/23/2020

 

$100,000

 

Auctus#9

 

8/11/2020

 

8/11/2021

 

$31,000

 

Auctus#10

 

11/9/2020

 

11/9/2021

 

$225,000

 

 

 

 

 

 

 

$549,010

 

 

Mine Safety Disclosures

 

Not Applicable.

 

Other Information

 

None.

 

 
21

Table of Contents

 

PART IV

 

ITEM 16. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

Exhibits

 

 

 

 

 

10.1

 

Board Consent Auctus BOTY 2022-05-12

 

 

 

10.2

 

Disbursement Auth Auctus BOTY 2022-05-12

 

 

 

10.3

 

First Warrant Auctus BOTY 2022-05-12

 

 

 

10.4

 

Note Auctus BOTY 2022-05-12

 

 

 

10.5

 

Note Auctus BOTY 2022-10-31 (Signed not notarized)

 

 

 

10.6

 

Officer's Certificate Auctus BOTY 2022-05-12

 

 

 

10.7

 

Second Warrant Auctus BOTY 2022-05-12

 

 

 

10.8

 

SPA Auctus BOTY 2022-05-12

 

 

 

10.9

 

SPA Auctus BOTY 2022-10-31

 

31.1*

 

Section 302 Certification

 

 

 

32.1*

 

Section 906 Certification

 

 

 

101.INS*

 

XBRL Instance Document

101.SCH*

 

XBRL Taxonomy Schema

101.CAL*

 

XBRL Taxonomy Calculation Linkbase

101.DEF*

 

XBRL Taxonomy Definition Linkbase

101.LAB*

 

XBRL Taxonomy Label Linkbase

101.PRE*

 

XBRL Taxonomy Presentation Linkbase

___________

* Filed herewith.

 

 
25

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

 

 

 

Date: July 18, 2023

By:

/s/ Shaun Donnelly

 

Shaun Donnelly

 

Chief Executive Officer and Chief Financial Officer

 

Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities on the dates indicated.

 

Signature

 

Title

 

Date

 

 

/s/ Shaun Donnelly

 

Chief Executive Officer (Principal Executive Officer), Chief Financial

 

July 18, 2023

Shaun Donnelly

 

Officer (Principal Financial and Accounting Officer), and Director

 

 
26

 

nullnullnullnullnullnullnullnullnullnullnullv3.23.2
Cover - USD ($)
12 Months Ended
Dec. 31, 2022
Jul. 13, 2023
Jun. 30, 2022
Cover [Abstract]      
Entity Registrant Name LINGERIE FIGHTING CHAMPIONSHIPS, INC.    
Entity Central Index Key 0001407704    
Document Type 10-K    
Amendment Flag false    
Entity Voluntary Filers No    
Current Fiscal Year End Date --12-31    
Entity Well Known Seasoned Issuer No    
Entity Small Business true    
Entity Shell Company false    
Entity Emerging Growth Company false    
Entity Current Reporting Status Yes    
Document Period End Date Dec. 31, 2022    
Entity Filer Category Non-accelerated Filer    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2022    
Entity Common Stock Shares Outstanding   3,711,714,036  
Entity Public Float     $ 1,410,381
Document Annual Report true    
Document Transition Report false    
Entity File Number 333-148005    
Entity Incorporation State Country Code NV    
Entity Tax Identification Number 47-1399226    
Entity Interactive Data Current Yes    
Entity Address Address Line 1 6955 North Durango Drive    
Entity Address Address Line 2 Suite 1115-129    
Entity Address City Or Town Las Vegas    
Entity Address State Or Province NV    
Entity Address Postal Zip Code 89149    
City Area Code 702    
Local Phone Number 505-0743    
Auditor Firm Id 5041    
Auditor Name BF Borgers CPA PC    
Auditor Location Lakewood, CO    
v3.23.2
BALANCE SHEETS - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Current Assets    
Cash and cash equivalents $ 10,009 $ 34,481
Prepaid expenses 0 7,500
Total Current Assets 10,009 41,981
Current Liabilities    
Accounts payable and accrued liabilities 37,098 20,849
Accounts payable - related party 542,668 465,168
Accrued interest payable 442,888 231,839
Promissory notes, net of $0 and $89,183 debt discount, respectively 340,000 250,817
Convertible notes, net of $34,800 and $0 debt discount, respectively 584,730 549,010
Derivative liabilities 2,967,243 5,323,107
Total Current Liabilities 4,914,627 6,840,790
STOCKHOLDERS' DEFICIT    
Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, 51 shares issued and outstanding 0 0
Common stock, par value $0.001 per share, 5,000,000,000 shares authorized, 3,711,714,036 shares and 3,535,302,536 shares issued and outstanding, respectively 3,711,715 3,535,303
Additional paid-in capital 1,327,104 1,387,030
Accumulated deficit (9,943,437) (11,721,142)
Total stockholders' deficit (4,904,618) (6,798,809)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 10,009 $ 41,981
v3.23.2
BALANCE SHEETS (Parenthetical) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
BALANCE SHEETS    
Promissory notes, debt discount $ 0 $ 89,183
Convertible notes, debt discount $ 34,800 $ 0
Preferred stock par value $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 51 51
Preferred stock, shares outstanding 51 51
Common stock, shares authorized 5,000,000,000 5,000,000,000
Common stock, Par value $ 0.001 $ 0.001
Common stock, shares issued 3,711,714,036 3,535,302,536
Common stock, shares outstanding 3,711,714,036 3,535,302,536
v3.23.2
STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
STATEMENTS OF OPERATIONS    
Revenue $ 113,802 $ 95,436
Cost of services 33,831 96,245
GROSS PROFIT (LOSS) 79,971 (809)
OPERATING EXPENSES    
Selling, general and administrative expenses 80,962 124,645
Professional fees 68,250 167,010
Management salaries 120,000 120,000
Total Operating Expenses 269,212 411,655
OPERATING LOSS (189,241) (412,464)
OTHER INCOME (EXPENSE)    
Interest expense (335,953) (629,690)
Gain (Loss) on change in fair value of derivative liabilities 2,302,899 (2,481,400)
Total Other Income (Expense) 1,966,946 (3,111,090)
NET INCOME (LOSS) $ 1,777,705 $ (3,523,554)
Basic and Diluted Income (Loss) per Common Share $ 0.00 $ (0.00)
Diluted Earnings (Loss) per Common Share $ 0.00 $ (0.00)
Basic and Diluted Weighted Average Shares of Common Stock Outstanding 3,575,418,028 2,976,633,298
Diluted Weighted Average Shares of Common Stock Outstanding 9,239,631,986 8,882,874,843
v3.23.2
STATEMENTS OF STOCKHOLDERS DEFICIT - USD ($)
Total
Preferred Shares
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Balance, shares at Dec. 31, 2020   51 2,339,101,663    
Balance, amount at Dec. 31, 2020 $ (5,878,867) $ 0 $ 2,339,102 $ (20,381) $ (8,197,588)
Shares of common stock issued for conversion of debts and accrued interest, shares     862,061,953    
Shares of common stock issued for conversion of debts and accrued interest, amount 309,054 0 $ 862,062 (553,008) 0
Shares of common stock issued for exercise of warrants, shares     267,438,920    
Shares of common stock issued for exercise of warrants, amount 0 0 $ 267,439 (267,439) 0
Commitment stock issued under registration rights agreement, shares     66,700,000    
Commitment stock issued under registration rights agreement, amount 120,060 0 $ 66,700 53,360 0
Write off of convertible notes and accrued interest 110,076 0 0 110,076 0
Derivative liabilities reclass to additional paid-in capital due to note conversion, warrant exercise and note written off 2,064,422 0 0 2,064,422 0
Net income (loss) (3,523,554) 0 0 0 (3,523,554)
Balance, amount at Dec. 31, 2021 (6,798,809) $ 0 $ 3,535,303 1,387,030 (11,721,142)
Balance, shares at Dec. 31, 2021   51 3,535,302,536    
Shares of common stock issued for exercise of warrants, shares     176,411,500    
Shares of common stock issued for exercise of warrants, amount 116,486 $ 0 $ 176,412 (59,926) 0
Write off of convertible notes and accrued interest 0        
Derivative liabilities reclass to additional paid-in capital due to note conversion, warrant exercise and note written off 0        
Net income (loss) 1,777,705 0 0 0 1,777,705
Balance, amount at Dec. 31, 2022 $ (4,904,618) $ 0 $ 3,711,715 $ 1,327,104 $ (9,943,437)
Balance, shares at Dec. 31, 2022   51 3,711,714,036    
v3.23.2
STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 1,777,705 $ (3,523,554)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of beneficial conversion feature 0 0
Note payable issued as equity commitment fee 0  
Stock - based compensation 0 120,060
Loss (Gain) on change in fair value of derivative liabilities (2,302,899) 2,481,400
Amortization of debt discount 124,904 462,701
Note conversion fee 0 2,000
Changes in operating assets and liabilities:    
Prepaid expense 7,500 (7,500)
Accounts payable - related party 77,500 76,500
Accounts payable and accrued liabilities 16,249 (44,258)
Accrued interest payable 211,049 166,990
Net cash used in operating activities (87,992) (265,661)
CASH FLOWS FROM INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from convertible debts 63,520 0
Proceeds from promissory notes 0 296,000
Net cash provided by financing activities 63,520 296,000
Net increase (decrease) in cash and cash equivalents (24,472) 30,339
Cash and cash equivalents - beginning of period 34,481 4,142
Cash and cash equivalents - end of period 10,009 34,481
Supplemental Cash Flow Disclosures    
Cash paid for interest 0 0
Cash paid for income taxes 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Debt discount from derivative liabilities 70,520 265,000
Derivative liabilities reclass to additional paid-in capital due to note conversion, warrant exercise and note written off 0 2,064,422
Shares of common stock issued for conversion of debt and accrued interest 0 862,062
Shares of common stock issued for exercise of warrants 176,412 267,439
Write off of convertible notes and accrued interest $ 0 $ 110,076
v3.23.2
ORGANIZATION AND NATURE OF BUSINESS
12 Months Ended
Dec. 31, 2022
ORGANIZATION AND NATURE OF BUSINESS  
ORGANIZATION AND NATURE OF BUSINESS

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Lingerie Fighting Championships, Inc. (the “Company”) is a Nevada corporation incorporated on November 29, 2006 under the name Sparking Events, Inc. The Company’s corporate name was changed to Xodtec Group USA, Inc. in June 2009, Xodtec LED, Inc. in May 2010, Cala Energy Corp. in September 2013 and Lingerie Fighting Championships, Inc. on April 1, 2015.

 

The Company focuses on developing, producing, promoting, and distributing entertainment through live entertainment events, digital home videos, broadcast television networks, video on demand, and digital media channels in the United States. It offers wrestling and mixed martial arts fights featuring women under the LFC brand name.

v3.23.2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2022
BASIS OF PRESENTATION AND ACCOUNTING POLICIES  
BASIS OF PRESENTATION AND ACCOUNTING POLICIES

NOTE 2 – BASIS OF PRESENTATION AND ACCOUNTING POLICIES

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company uses the accrual basis of accounting and has adopted a December 31 fiscal year end.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates and judgments. The Company bases its estimates and judgments on historical experience and other factors that it believes to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $10,009 and $34,481 in cash and cash equivalents as at December 31 2022 and December 31, 2021, respectively.

 

Revenue Recognition

 

The Company recognizes revenue from the sale of products and services in accordance with ASC 606, “Revenue Recognition” following the five steps procedure:

 

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize revenue when the entity satisfies a performance obligation

The Company’s revenue derives from the development, promotion and distribution of live events and televised entertainment programming and also through sponsorship and site subscription. For the year ended December 31, 2022 and 2021, the Company recognized revenue of $113,802 and $95,436 and incurred cost of sales of $33,831 and $96,245, resulting in gross profit of $79,971 and gross loss of $809, respectively.

 

Earnings (Loss) per Share

 

The Company computes basic and diluted net loss per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted loss per share reflects the potential dilution that could occur if convertible notes to issue common stock were converted resulting in the issuance of common stock that could share in the loss of the Company.

 

For the year ended December 31, 2022 and 2021, convertible notes and warrants were dilutive instruments and were included in the calculation of diluted earnings per share.

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Shares)

 

 

(Shares)

 

Convertible notes payable

 

 

2,398,622,720

 

 

 

1,220,824,879

 

Warrants

 

 

3,265,591,238

 

 

 

4,685,416,666

 

 

 

 

5,664,213,958

 

 

 

5,906,241,545

 

 

Related Party Balances and Transactions

 

The Company follows FASB ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transaction. (See Note 9)

 

Convertible Instruments and Derivatives

 

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities.”

 

Share-Based Compensation

 

The Company measures the cost of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Employee awards are accounted for under ASC 718 - where the awards are valued at grant date. Awards given to nonemployees are accounted for under ASC 505 where the awards are valued at earlier of commitment date or completion of services. Compensation cost for employee awards is recognized over the vesting or requisite service period. The Black-Scholes option-pricing model is used to estimate the fair value of options or warrants granted.

 

Fair Value Measurement

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 –

quoted prices in active markets for identical assets or liabilities

Level 2 –

quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 –

inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis. (See Note 8)

 

The following table summarizes fair value measurement by level at December 31, 2022 and December 31, 2021, measured at fair value on a recurring basis:

 

December 31, 2022

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

2,967,243

 

 

 

2,967,243

 

 

December 31, 2021

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

5,323,107

 

 

 

5,323,107

 

 

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For the Company, the new standard was effective on January 1, 2021 and the adoption of this guidance to have a material impact on our financial statements.

 

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. For the Company, the new standard was effective on January 1, 2021 and the adoption of this guidance to have a material impact on our financial statements.

 

Management has considered all other recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

v3.23.2
GOING CONCERN
12 Months Ended
Dec. 31, 2022
GOING CONCERN  
GOING CONCERN

NOTE 3 – GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with GAAP, which contemplate continuation of the Company as a going concern. The Company has generated nominal revenues since inception, has sustained losses since its organization and requires funding to generate revenue. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern.

 

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company can give no assurances that it can or will become financially viable and continue as a going concern.

v3.23.2
STOCKHOLDERS DEFICIT
12 Months Ended
Dec. 31, 2022
STOCKHOLDERS DEFICIT  
STOCKHOLDERS DEFICIT

NOTE 4 – STOCKHOLDERS DEFICIT

 

Preferred Stock

 

The authorized preferred stock consists of 10,000,000 shares with a par value $0.001 per share. The board of directors has broad discretion in setting the rights, preferences and privileges of one or more series of preferred stock.

 

On September 3, 2016, the Company issued 51 Series A preferred shares to the Chief Executive Officer. The Series A preferred shares have voting rights, resulting in the Series A stockholder holding in aggregate approximately 51% of the total voting power of all issued and outstanding voting capital of the Company. The valuation of the preferred shares was completed by the Company based on the change in voting percentage rights before and after the Series A shares were issued. The value of the Series A shares is $42,669 and was expensed.

 

There were 51 and 51 preferred shares issued and outstanding as at December 31, 2022 and December 31, 2021, respectively.

 

Common Stock

 

The Company has authorized 5,000,000,000 shares with a par value $0.001 per share.

 

During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company issued 862,061,953 shares of common stock for the conversion of convertible note of $139,132 and accrued interest of $167,920.

 

During the year ended December 31, 2021, the Company issued 267,438,920 shares of common stock for the exercise of 281,500,000 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company issued 66,700,000 shares of common stock as commitment stock to a noteholder under registration rights agreement in relations to the filing of S-1.

 

As of December 31, 2022 and December 31, 2021, the shares of common stock issued and outstanding was 3,711,714,036 and 3,535,302,536. respectively

v3.23.2
WARRANTS
12 Months Ended
Dec. 31, 2022
WARRANTS  
WARRANTS

NOTE 5 – WARRANTS

 

The below table summarizes the activity of warrants exercisable for shares of common stock during the year ended December 31, 2022 and 2021:

 

 

 

 Number of Shares

 

 

 Weighted- Average Exercise Price

 

Balances as of December 31, 2020

 

 

5,438,166,666

 

 

$0.0001

 

Granted

 

 

400,000,000

 

 

 

0.0002

 

Redeemed

 

 

-

 

 

 

-

 

Exercised

 

 

(281,500,000)

 

 

0.0003

 

Forfeited

 

 

-

 

 

 

-

 

Balances as of December 31, 2021

 

 

5,556,666,666

 

 

$0.0001

 

Granted

 

 

282,080,000

 

 

 

0.0005

 

Redeemed

 

 

-

 

 

 

-

 

Exercised

 

 

(201,613,143)

 

 

0.0001

 

Forfeited

 

 

-

 

 

 

-

 

Balances as of December 31, 2022

 

 

5,637,133,523

 

 

$0.0001

 

 

During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company issued 267,438,920 shares of common stock for the exercise of 281,500,000 units of share purchase warrants.

 

During the year ended December 31, 2021, the Company granted 400,000,000 units of share purchase warrants in conjunction to the issuance of promissory note noteholders totaling $340,000.

 

The fair value of each warrant on the date of grant is estimated using the Black-Scholes option valuation model. The following weighted-average assumptions were used for warrants granted during the year ended December 31, 2022 and 2021:

 

 

 

Year Ended

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Exercise price

 

$0.0001 - $0.0008

 

 

$0.0001 - $0.0008

 

Expected term

 

2.98 years

 

 

3.79 years

 

Expected average volatility

 

180% - 365%

 

 

350% - 417%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

2.28% - 4.27%

 

 

0.18% - 1.26%

 

 

The following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2022:

 

Warrants Outstanding

 

 

Warrants Exercisable

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

Number

 

 

Remaining Contractual

 

 

Weighted Average

 

 

Number

 

 

Weighted Average

 

of Shares

 

 

life (in years)

 

 

Exercise Price

 

 

of Shares

 

 

Exercise Price

 

 

5,637,133,523

 

 

 

2.98

 

 

$0.0001

 

 

 

5,048,386,857

 

 

$0.0001

 

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at December 31, 2022 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). As of December 31, 2022, the aggregate intrinsic value of warrants outstanding was approximately $976,677 based on the closing market price of $0.0003 on December 31, 2022.

 

The Company determined that the warrants qualify for derivative accounting as a result of the related issuance of the convertible notes. As of December 31, 2022 and 2021, the Company valued the fair value on the 5,637,133,523 units and 5,556,666,666 units of common stock purchase warrants granted at $1,683,773 and $4,444,017 based on Black-Scholes option valuation model, respectively.

v3.23.2
PROMISSORY NOTE
12 Months Ended
Dec. 31, 2022
PROMISSORY NOTE  
PROMISSORY NOTE

NOTE 6 – PROMISSORY NOTES

 

The Company had the following promissory notes payable as at December 31, 2022 and December 31, 2021:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

Promissory Notes to Auctus Fund

 

$340,000

 

 

$340,000

 

Less Debt Discount

 

 

-

 

 

 

(89,183)

Total Promissory Notes

 

$340,000

 

 

$250,817

 

 

On March 4, 2021, the Company entered into an agreement with Auctus Fund, LLC to issue a senior secured promissory note of $300,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on March 4, 2022. In conjunction with the convertible note, the Company issued warrants to purchase 150,000,000 shares of common stock, exercisable for five years from issuance at $0.002 per share and returnable warrants to purchase 150,000,000 shares of common stock, exercisable for five years form issuance at $0.002 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date. (See Note 5) The note was discounted for original issued discount of $35,000 and a derivative on warrants of $265,000 for an aggregate discount of $300,000, which is being amortized over the life of the note using the effective interest method resulting in $248,077 of debt discount amortization for the year ended December 31, 2021. As of December 31, 2022 and 2021, the note is presented at $300,000 and $248,077, net of debt discount of $0 and $89,183, respectively.

 

On December 6, 2021, the Company entered into an agreement with Auctus Fund, LLC to issue a senior secured promissory note of $40,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on December 6, 2022. In conjunction with the convertible note, the Company issued first common stock purchased warrants to purchase 50,000,000 shares of common stock, exercisable for five years from issuance at $0.0008 per share and second common stock purchased warrants to purchase 50,000,000 shares of common stock, exercisable for five years form issuance at $0.0008 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date. (See Note 5) The note was discounted for original issued discount of $9,000 and a derivative on warrants of $31,000 for an aggregate discount of $40,000, which is being amortized over the life of the note using the effective interest method resulting in $2,740 of debt discount amortization for the year ended December 31, 2021. As of December 31, 2022 and 2021, the note is presented at $40,000 and $2,740, net of debt discount of $0 and $37,260, respectively.

 

During the year ended December 31, 2022 and 2021, interest expense of $52,800 and $33,008 was incurred on the promissory notes. As of December 31, 2022 and December 31, 2021, accrued interest payable on the promissory note was $85,809 and $33,008, respectively.

v3.23.2
CONVERTIBLE NOTES
12 Months Ended
Dec. 31, 2022
CONVERTIBLE NOTES  
CONVERTIBLE NOTES

NOTE 7 - CONVERTIBLE NOTES

 

The Company had the following unsecured convertible notes payable as at December 31, 2022 and December 31, 2021:

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

Convertible Promissory Notes to Auctus Fund

 

$584,729

 

 

$549,010

 

Total Convertible Debts

 

$584,729

 

 

$549,010

 

 

Promissory Notes Payable to Auctus Fund

 

Auctus #1

 

On May 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $67,750 with a $7,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $60,000 is being amortized over the life of the note using the effective interest method resulting in $0 and $14,542 of interest expense for the year ended December 31, 2018 and December 31, 2017, respectively.

 

During the year ended December 31, 2017, principal of $15,278 and accrued interest of $5,975 were converted into 111,460,000 shares of common stock.

 

During the year ended December 31, 2018, accrued interest of $2,494 were converted into 133,258,300 shares of common stock.

 

During the year ended December 31, 2019, principal of $40,241 and accrued interest of $1,153 were converted into 1,066,179,950 shares of common stock.

 

During the year ended December 31, 2020, accrued interest of $12,717 were converted into 317,919,774 shares of common stock.

 

During the year ended December 31, 2021, principal of $3,746 and accrued interest of $5,834 were converted into 239,266,512 shares of common stock.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $1,265 and $1,265, respectively.

 

This note is currently in default.

 

Auctus #2

 

On September 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $56,750 with a $6,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $50,000 is being amortized over the life of the note using the effective interest method resulting in $0 and $35,607 of interest expense for the year ended December 31, 2018 and year ended December 31, 2017, respectively.

 

On July 7, 2017, note amendment was executed with $20,000 increase in principal of the note and the note principal increased to $76,750. The Company received $20,000 cash proceeds from the note amendment on the same date.

 

During the year ended December 31, 2021, principal of $76,750 and accrued interest of $83,128 were converted into 288,590,075 shares of common stock.

 

As of December 31, 2022 and 2021, the notes were fully paid off through the issuance of common stock.

Auctus #3

 

On January 13, 2017, the Company entered into an agreement with Power Up Lending Group to issue a convertible promissory note of 45,000 with a $2,500 original issue discount to the unrelated party, which bears interest at 8% of the principal amount. The promissory note matures on January 13, 2018. The conversion price shall be equal to 57.5% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The note was discounted for a derivative and the discount of $45,000 is being amortized over the life of the note using the effective interest method. Total of $0 and $40,843 of the discount was recorded as interest expense for the year ended December 31, 2018 and the year ended December 31, 2017.

 

During the year ended December 31, 2017, principal of $6,700 was converted into 30,455,486 shares of common stock.

 

On June 14, 2017, the Company entered into an agreement with Power Up Lending Group to issue a convertible promissory note of $7,500 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matured on March 20, 2018. The conversion price shall be equal to 50% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The note was discounted for a derivative and the discount of $7,500 is being amortized over the life of the note using the effective interest method. Total of $0 and $4,462 of the discount was recorded as interest expense for the year ended December 31, 2018 and the year ended December 31, 2017.

 

On November 27, 2017, Auctus Fund, LLC entered into an agreement with Power Up Lending Group Ltd. to buy out the total outstanding principal amount and accrued interest of the two convertible promissory notes at $50,774.54. The note bears interest at 12% of the principal amount and matured on March 20, 2018. The conversion price shall be equal 57.5% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. During the year ended December 31, 2018 and the year ended December 31, 2017, interest expense of $5,030 and $2,165 was recorded over the remaining note discount transferred the two convertible notes of $7,195.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $50,745.

 

This note is currently in default.

 

Auctus #4

 

On November 2, 2017, the Company entered into an agreement to issue a convertible promissory note of $53,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on August 2, 2018. The conversion price shall be equal to 50% of the lowest trading price of the Company’s common stock during the 25 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The note was discounted for a derivative and the discount of $53,000 is being amortized over the life of the note using the effective interest method. Total of $41,546 and $11,454 of the discount was recorded as interest expense for the year ended December 31, 2018 and the year ended December 31, 2017. On February 23, 2018, EMA Financial LLC and Auctus Fund, LLC each made repayment to Crown Bridge Partners, LLC on behalf of the Company at $5,636.04 to settle the total outstanding principal and accrued penalty amount at $11,272.08 of the $40,000 convertible note. As a result, the principal amount of the $53,000 convertible note increased to $58,636.04.

 

During the year ended December 31, 2021, principal of $58,636 and accrued interest of $52,583 were converted into 166,178,366 shares of common stock.

 

As of December 31, 2022, the notes were fully paid off through the issuance of common stock.

Auctus #5

 

On March 7, 2018, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $30,000 with a $5,000 original issue discount. The convertible promissory note bears interest at 12% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $30,000 is being amortized over the life of the note using the effective interest method resulting in $30,000 of interest expense for the year ended December 31, 2018.

 

During the year ended December 31, 2021, accrued interest of $26,384 were converted into 168,027,000 shares of common stock.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $30,000.

 

This note is currently in default.

 

Auctus #6

 

On July 9, 2018, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $43,500 with a $5,000 original issue discount. On July 25, 2018, the convertible promissory note was further amended with principal increased to $48,500. The convertible promissory note bears interest at 12% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $48,500 is being amortized over the life of the note using the effective interest method resulting in $17,524 and $30,976 of interest expense for the year ended December 31, 2019 and the year ended December 31, 2018, respectively. In conjunction with the convertible note, the Company issued warrants to purchase 72,500,000 shares of common stock, exercisable for five years from issuance at $0.0003 per share.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $48,500.

 

This note is currently in default.

 

Auctus #7

 

On March 22, 2019, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $62,500 with a $9,000 original issue discount. The convertible promissory note bears interest at 12% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative and the discount of $62,500 is being amortized over the life of the note using the effective interest method resulting in $62,500 of interest expense for the year ended December 31, 2019. In conjunction with the convertible note, the Company issued warrants to purchase 209,000,000 shares of common stock, exercisable for five years from issuance at $0.0003 per share.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $62,500.

 

This note is currently in default.

 

Auctus#8

 

On October 23, 2019, the Company entered into an agreement to issue a convertible promissory note of $100,000 to the unrelated party, which bears interest at 12% per annum and matures nine months from issue date. The conversion price shall be equal to the lesser of (i) 50% multiplied by the lowest Trading Price during the previous twenty-five Trading Day period ending on the latest complete Trading Day prior to the date of this Note and (ii) the Variable Conversion Price, that is 50% multiplied by the Market Price, being the lowest Trading Price for the Common Stock during the twenty-five Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. The note was discounted for a derivative and the discount of $100,000 is being amortized over the life of the note using the effective interest method resulting in $25,182 of interest expense for the year ended December 31, 2019. In conjunction with the convertible note, the Company issued warrants to purchase 50,000,000 shares of common stock, exercisable for five years from issuance at $0.0001 per share. During the year ended December 31, 2022, the Company issued 176,411,500 shares of common stock for the exercise of 201,613,143 units of share purchase warrants. As of December 31, 2022, the outstanding units of warrants was 298,398,857.

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $100,000.

 

This note is currently in default.

 

Auctus#9

 

On August 4, 2020, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $31,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on August 4, 2021. The note is to be repaid by six equal payments commencing on the sixth month anniversary of issuance and due monthly thereafter. The conversion price shall be equal to the lesser of (i) the lowest Trading Price during the previous five trading date period ending on the latest completed trading Day prior to the date of this Note and (ii) Variable Conversion Price, that is Market Price being the volume weighted average price (VWAP) for the Common Stock during the five trading day period ending on the latest complete trading day prior to the conversion date. The note was discounted for a derivative and the discount of $31,000 is being amortized over the life of the note using the effective interest method. In conjunction with the convertible note, the Company issued warrants to purchase 206,666,666 shares of common stock, exercisable for five years from issuance at $0.0003 per share.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $31,000.

 

This note is currently in default.

 

Auctus#10

 

On November 2, 2020, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $225,000 to the unrelated party, which bears interest at 12% of the principal amount. The promissory note matures on November 2, 2021. The note is to be repaid by six equal payments commencing on the sixth month anniversary of issuance and due monthly thereafter. The conversion price shall be equal to the lesser of (i) the lowest Trading Price and (ii) Variable Conversion Price, that is Market Price being the lowest trading price for the common stock during the one trading day period ending on the latest complete trading day prior to the conversion date. The note was discounted for a derivative and the discount of $225,000 is being amortized over the life of the note using the effective interest method. In conjunction with the convertible note, the Company issued warrants to purchase 2,225,000,000 shares of common stock, exercisable for five years from issuance at $0.0001 per share and returnable warrants to purchase 2,225,000,000 shares of common stock, exercisable for five years form issuance at $0.0001 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $225,000.

 

This note is currently in default.

 

Auctus#13

 

On May 12, 2022, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $52,000 to the unrelated party, which bears interest at 12% of the principal amount. The convertible promissory note matures on May 12, 2023. The note is convertible into common shares of $0.0005 per share. The note was discounted for a derivative and the discount of $52,000 is being amortized over the life of the note using the effective interest method. During the year months ended December 31, 2022, the amortization of note discount was $32,625. As of December 31, 2022, the unamortized note discount was $19,375. In conjunction with the convertible note, the Company issued warrants to purchase 104,000,000 shares of common stock (“First Warrant”), exercisable for five years from issuance at $0.0005 per share and warrants to purchase 104,000,000 shares of common stock (“Second Warrant”), exercisable for five years form issuance at $0.0005 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $32,625 and $0, respectively.

Auctus#14

 

On October 31, 2022, the Company entered into an agreement with Auctus Fund, LLC to issue a convertible promissory note of $18,520. The convertible promissory note matures on October 31, 2023 and bears annual interest rate at 12%. The note is convertible into common shares of $0.0005 per share. The note was discounted for a derivative and the discount of $18,520 is being amortized over the life of the note using the effective interest method. During the year months ended December 31, 2022, the amortization of note discount was $3,095. As of December 31, 2022, the unamortized note discount was $15,425.  In conjunction with the convertible note, the Company issued warrants to purchase 37,040,000 shares of common stock (“First Warrant”), exercisable for five years from issuance at $0.0005 per share and warrants to purchase 104,000,000 shares of common stock (“Second Warrant”), exercisable for five years form issuance at $0.0005 per share which will be automatically expired in the event that the Company repays the convertible promissory notes prior to its maturity date.

 

As of December 31, 2022 and December 31, 2021, the note is presented net of a debt discount of $3,095 and $0, respectively.

 

Accrued interest on convertible notes

 

During the year ended December 31, 2022 and 2021, interest expense of $158,249 and $133,981 was incurred on convertible notes, respectively. As of December 31, 2022 and December 31, 2021, accrued interest payable on convertible notes was $357,080 and $198,831, respectively.

 

Summary of Conversions

 

During the year ended December 31, 2021, the Company issued 862,061,953 shares of common stock for the conversion of convertible note of $139,132 and accrued interest of $167,920.

v3.23.2
DERIVATIVE LIABILITY
12 Months Ended
Dec. 31, 2022
DERIVATIVE LIABILITY  
DERIVATIVE LIABILITY

NOTE 8 - DERIVATIVE LIABILITY

 

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective.

 

The following table summarizes the derivative liabilities included in the balance sheet at December 31, 2022:

 

Balance - December 31, 2021

 

$5,323,107

 

Addition of new derivative liabilities upon issuance of convertible notes as debt discount

 

 

(67,670)

Reduction of derivative liabilities from exercise of warrants

 

 

(116,486)

Addition of new derivative liabilities upon issuance of warrants as debt discount

 

 

131,190

 

Addition of new derivatives liabilities recognized as day one loss on warrants

 

 

125,714

 

Loss (Gain) on change in fair value of the derivative

 

 

(2,428,612)

Balance - December 31, 2022

 

$

2,967,243

 

 

The following table summarizes the loss (gain) on derivative liability included in the income statement for the year ended December 31, 2022 and 2021, respectively.

 

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Day one loss due to derivative liabilities on convertible notes and warrants

 

$125,714

 

 

$385,964

 

Loss (Gain) on change in fair value of derivative liabilities on convertible notes and warrants

 

 

(2,428,613)

 

 

2,095,436

 

Loss (Gain) on change in fair value of derivative liabilities

 

$(2,302,899)

 

$2,481,400

 

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability for convertible notes at each measurement date:

 

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Expected term

 

0.37 - 0.82 years

 

 

 

-

 

Expected average volatility

 

223% - 349%

 

 

95% - 472%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

2.07% - 4.73%

 

 

0.03% - 0.97%

 

v3.23.2
RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2022
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

NOTE 9 - RELATED PARTY TRANSACTIONS

 

During the year ended December 31, 2022, the Company accrued $120,000 of salary payable to the Director of the Company and paid $42,500 owing to him for the accrued salaries.

 

During the year ended December 31, 2021, the Company accrued $120,000 of salary payable to the Director of the Company and paid $43,500 owing to him for the accrued salaries.

 

As of December 31, 2022 and December 31, 2021, amount due to the related party was $542,668 and $465,168, respectively.

v3.23.2
INCOME TAX
12 Months Ended
Dec. 31, 2022
INCOME TAX  
INCOME TAX

NOTE 10 - INCOME TAX

 

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of December 31, 2022 and 2021, are as follows:

 

 

 

 December 31, 2022

 

 

 December 31, 2021

 

Net operating loss carryforward

 

$4,345,599

 

 

$3,820,405

 

Statutory tax Rate

 

 

21%

 

 

21%

Deferred tax asset

 

 

912,576

 

 

 

802,285

 

Less: Valuation allowance

 

 

(912,576)

 

 

(802,285)

Net deferred assets

 

$-

 

 

$-

 

 

As of December 31, 2022, the Company had approximately $4.3 million in net operating losses (“NOLs”) that may be available to offset future taxable income, which begin to expire between 2034 and 2037. NOLs generated in tax years prior to December 31, 2017, can be carryforward for twenty years, whereas NOLs generated after December 31, 2017 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2014 through 2022 are subject to review by the tax authorities.

v3.23.2
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2022
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 11 - SUBSEQUENT EVENTS

 

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to the December 31, 2022 to the date these financial statements were issued and has determined that it has the below subsequent events:

 

On January 4, 2023, the Company issued a convertible note to Auctus Fund, LLC for proceeds of $25,000.

v3.23.2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2022
BASIS OF PRESENTATION AND ACCOUNTING POLICIES  
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company continually evaluates its estimates and judgments. The Company bases its estimates and judgments on historical experience and other factors that it believes to be reasonable under the circumstances. Materially different results can occur as circumstances change and additional information becomes known, even for estimates and judgments that are not deemed critical.

Cash and Cash Equivalents

The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $10,009 and $34,481 in cash and cash equivalents as at December 31 2022 and December 31, 2021, respectively.

Revenue Recognition

The Company recognizes revenue from the sale of products and services in accordance with ASC 606, “Revenue Recognition” following the five steps procedure:

 

Step 1: Identify the contract(s) with customers

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to performance obligations

Step 5: Recognize revenue when the entity satisfies a performance obligation

The Company’s revenue derives from the development, promotion and distribution of live events and televised entertainment programming and also through sponsorship and site subscription. For the year ended December 31, 2022 and 2021, the Company recognized revenue of $113,802 and $95,436 and incurred cost of sales of $33,831 and $96,245, resulting in gross profit of $79,971 and gross loss of $809, respectively.

Earnings (Loss) per Share

The Company computes basic and diluted net loss per share amounts in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the reporting period. Diluted loss per share reflects the potential dilution that could occur if convertible notes to issue common stock were converted resulting in the issuance of common stock that could share in the loss of the Company.

 

For the year ended December 31, 2022 and 2021, convertible notes and warrants were dilutive instruments and were included in the calculation of diluted earnings per share.

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Shares)

 

 

(Shares)

 

Convertible notes payable

 

 

2,398,622,720

 

 

 

1,220,824,879

 

Warrants

 

 

3,265,591,238

 

 

 

4,685,416,666

 

 

 

 

5,664,213,958

 

 

 

5,906,241,545

 

Related Party Balances and Transactions

The Company follows FASB ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transaction. (See Note 9)

Convertible Instruments and Derivatives

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities.”

Share-Based Compensation

The Company measures the cost of services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. Employee awards are accounted for under ASC 718 - where the awards are valued at grant date. Awards given to nonemployees are accounted for under ASC 505 where the awards are valued at earlier of commitment date or completion of services. Compensation cost for employee awards is recognized over the vesting or requisite service period. The Black-Scholes option-pricing model is used to estimate the fair value of options or warrants granted.

Fair Value Measurement

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures,” which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

 

Level 1 –

quoted prices in active markets for identical assets or liabilities

Level 2 –

quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 –

inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

 

The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis. (See Note 8)

 

The following table summarizes fair value measurement by level at December 31, 2022 and December 31, 2021, measured at fair value on a recurring basis:

 

December 31, 2022

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

2,967,243

 

 

 

2,967,243

 

 

December 31, 2021

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

5,323,107

 

 

 

5,323,107

 

Recent Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For the Company, the new standard was effective on January 1, 2021 and the adoption of this guidance to have a material impact on our financial statements.

 

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. For the Company, the new standard was effective on January 1, 2021 and the adoption of this guidance to have a material impact on our financial statements.

 

Management has considered all other recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.

v3.23.2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2022
BASIS OF PRESENTATION AND ACCOUNTING POLICIES  
Schedule of antidilutive securities excluded from computation of earnings per share

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(Shares)

 

 

(Shares)

 

Convertible notes payable

 

 

2,398,622,720

 

 

 

1,220,824,879

 

Warrants

 

 

3,265,591,238

 

 

 

4,685,416,666

 

 

 

 

5,664,213,958

 

 

 

5,906,241,545

 

Schedule of fair value measurement on recurring basis

December 31, 2022

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

2,967,243

 

 

 

2,967,243

 

December 31, 2021

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

5,323,107

 

 

 

5,323,107

 

v3.23.2
WARRANTS (Tables)
12 Months Ended
Dec. 31, 2022
WARRANTS  
Schedule of warrants exercisable for common shares

 

 

 Number of Shares

 

 

 Weighted- Average Exercise Price

 

Balances as of December 31, 2020

 

 

5,438,166,666

 

 

$0.0001

 

Granted

 

 

400,000,000

 

 

 

0.0002

 

Redeemed

 

 

-

 

 

 

-

 

Exercised

 

 

(281,500,000)

 

 

0.0003

 

Forfeited

 

 

-

 

 

 

-

 

Balances as of December 31, 2021

 

 

5,556,666,666

 

 

$0.0001

 

Granted

 

 

282,080,000

 

 

 

0.0005

 

Redeemed

 

 

-

 

 

 

-

 

Exercised

 

 

(201,613,143)

 

 

0.0001

 

Forfeited

 

 

-

 

 

 

-

 

Balances as of December 31, 2022

 

 

5,637,133,523

 

 

$0.0001

 

Schedule of weighted-average assumptions

 

 

Year Ended

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

Exercise price

 

$0.0001 - $0.0008

 

 

$0.0001 - $0.0008

 

Expected term

 

2.98 years

 

 

3.79 years

 

Expected average volatility

 

180% - 365%

 

 

350% - 417%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

2.28% - 4.27%

 

 

0.18% - 1.26%

 

Schedule of outstanding and exercisable warrants

Warrants Outstanding

 

 

Warrants Exercisable

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

Number

 

 

Remaining Contractual

 

 

Weighted Average

 

 

Number

 

 

Weighted Average

 

of Shares

 

 

life (in years)

 

 

Exercise Price

 

 

of Shares

 

 

Exercise Price

 

 

5,637,133,523

 

 

 

2.98

 

 

$0.0001

 

 

 

5,048,386,857

 

 

$0.0001

 

v3.23.2
PROMISSORY NOTES (Tables)
12 Months Ended
Dec. 31, 2022
PROMISSORY NOTE  
Schedule of promissory notes payable

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

Promissory Notes to Auctus Fund

 

$340,000

 

 

$340,000

 

Less Debt Discount

 

 

-

 

 

 

(89,183)

Total Promissory Notes

 

$340,000

 

 

$250,817

 

v3.23.2
CONVERTIBLE NOTES (Tables)
12 Months Ended
Dec. 31, 2022
CONVERTIBLE NOTES  
Schedule of convertible notes payable

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

Convertible Promissory Notes to Auctus Fund

 

$584,729

 

 

$549,010

 

Total Convertible Debts

 

$584,729

 

 

$549,010

 

v3.23.2
DERIVATIVE LIABILITY (Tables)
12 Months Ended
Dec. 31, 2022
DERIVATIVE LIABILITY  
Schedule of derivative liabilities

Balance - December 31, 2021

 

$5,323,107

 

Addition of new derivative liabilities upon issuance of convertible notes as debt discount

 

 

(67,670)

Reduction of derivative liabilities from exercise of warrants

 

 

(116,486)

Addition of new derivative liabilities upon issuance of warrants as debt discount

 

 

131,190

 

Addition of new derivatives liabilities recognized as day one loss on warrants

 

 

125,714

 

Loss (Gain) on change in fair value of the derivative

 

 

(2,428,612)

Balance - December 31, 2022

 

$

2,967,243

 

Schedule of loss (gain) on derivative liability

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Day one loss due to derivative liabilities on convertible notes and warrants

 

$125,714

 

 

$385,964

 

Loss (Gain) on change in fair value of derivative liabilities on convertible notes and warrants

 

 

(2,428,613)

 

 

2,095,436

 

Loss (Gain) on change in fair value of derivative liabilities

 

$(2,302,899)

 

$2,481,400

 

Schedule of fair value assumptions used to measure derivative liabilities

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Expected term

 

0.37 - 0.82 years

 

 

 

-

 

Expected average volatility

 

223% - 349%

 

 

95% - 472%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

2.07% - 4.73%

 

 

0.03% - 0.97%

 

v3.23.2
INCOME TAX (Tables)
12 Months Ended
Dec. 31, 2022
INCOME TAX  
Schedule of deferred tax asset and reconciliation of income taxes

 

 

 December 31, 2022

 

 

 December 31, 2021

 

Net operating loss carryforward

 

$4,345,599

 

 

$3,820,405

 

Statutory tax Rate

 

 

21%

 

 

21%

Deferred tax asset

 

 

912,576

 

 

 

802,285

 

Less: Valuation allowance

 

 

(912,576)

 

 

(802,285)

Net deferred assets

 

$-

 

 

$-

 

v3.23.2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details) - shares
12 Months Ended 24 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Stock Issued During Period, Shares, New Issues 5,664,213,958 5,906,241,545
Warrants [Member]    
Stock Issued During Period, Shares, New Issues 3,265,591,238 4,685,416,666
Convertible Notes Payable [Member]    
Stock Issued During Period, Shares, New Issues 2,398,622,720 1,220,824,879
v3.23.2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details 1) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Assets    
Derivative assets $ 0 $ 0
Liabilities    
Derivative liabilities 2,967,243 5,323,107
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets    
Derivative assets 0 0
Liabilities    
Derivative liabilities 0 0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets    
Derivative assets 0 0
Liabilities    
Derivative liabilities 0 0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets    
Derivative assets 0 0
Liabilities    
Derivative liabilities $ 2,967,243 $ 5,323,107
v3.23.2
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
BASIS OF PRESENTATION AND ACCOUNTING POLICIES    
Cash and cash equivalents $ 10,009 $ 34,481
Prepaid expense 7,900 7,900
Cost of Sales 33,831 96,245
Gross Profit (Loss) 79,971 (809)
Revenue $ 113,802 $ 95,436
v3.23.2
STOCKHOLDERS DEFICIT (Details Narrative) - USD ($)
12 Months Ended
Dec. 06, 2021
Mar. 04, 2021
Sep. 03, 2016
Dec. 31, 2022
Dec. 31, 2021
Preferred stock, shares authorized       10,000,000 10,000,000
Preferred stock par value (in dollars per share)       $ 0.001 $ 0.001
Preferred stock, shares issued       51 51
Preferred stock, shares outstanding       51 51
Common stock, shares authorized       5,000,000,000 5,000,000,000
Common stock, par value (in dollars per share)       $ 0.001 $ 0.001
Common stock, shares issued       3,711,714,036 3,535,302,536
Common stock, shares outstanding       3,711,714,036 3,535,302,536
Common stock shares issued upon exercise of warrants       176,411,500 267,438,920
Conversion of convertible note amount $ 9,000 $ 35,000      
Number of warrants exercised       201,613,143 281,500,000
Common Shares [Member]          
Common shares issued for conversion of debt         862,061,953
Common stock shares issued upon exercise of warrants       176,411,500 267,438,920
Common stock shares issued upon commitment         66,700,000
Conversion of convertible note amount         $ 139,132
Conversion of accrued interest amount         $ 167,920
Number of warrants exercised       201,613,143 281,500,000
Chief Executive Officers [Member] | Series A Preferred Stocks [Member]          
Preferred stock, shares issued     51    
Ownership percentage     51.00%    
Series A preferred stock Value     $ 42,669    
v3.23.2
WARRANTS (Details) - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Number of Shares    
Balances beginning 5,556,666,666 5,438,166,666
Granted 282,080,000 400,000,000
Exercised (201,613,143) (281,500,000)
Forfeited 0 0
Balances ending 5,637,133,523 5,556,666,666
Weighted Average Exercise Price    
Balances Beginning $ 0.0001 $ 0.0001
Redeemed 0 0
Granted 0.0005 0.0002
Exercised 0.0001 0.0003
Forfeited 0 0
Balances ending $ 0.0001 $ 0.0001
v3.23.2
WARRANTS (Details 1) - $ / shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Expected dividend yield 0.00% 0.00%
Expected term 2 years 11 months 23 days 3 years 9 months 14 days
Minimum [Member]    
Exercise price $ 0.0001 $ 0.0001
Expected average volatility 180.00% 350.00%
Risk-free interest rate 2.28% 0.18%
Maximum [Member]    
Exercise price $ 0.0008 $ 0.0008
Expected average volatility 365.00% 417.00%
Risk-free interest rate 4.27% 1.26%
v3.23.2
WARRANTS (Details 2)
12 Months Ended
Dec. 31, 2022
$ / shares
shares
Warrants Outstanding [Member]  
Number of shares outstanding | shares 5,637,133,523
Weighted Average Remaining Contractual life (in years) Warrants Outstanding 2 years 11 months 23 days
Weighted average exercise prices | $ / shares $ 0.0001
Warrants Exercisable [Member]  
Number of shares outstanding | shares 5,048,386,857
Weighted average exercise prices | $ / shares $ 0.0001
v3.23.2
WARRANTS (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
WARRANTS    
Convertible notes, warrant issued to purchase common stock shares   400,000,000
Warrants granted for promissory note $ 340,000  
Common stock share issued, exercise 176,411,500 267,438,920
Shares purchases in conversion of warrants 201,613,143 281,500,000
Aggregate intrinsic value of warrants outstanding $ 976,677  
Closing market price $ 0.0003  
Fair value of warrants $ 5,637,133,523 $ 5,556,666,666
Warrants granted 1,683,773 4,444,017
v3.23.2
PROMISSORY NOTES (Details) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
PROMISSORY NOTE    
Promissory Notes to Auctus Fund $ 340,000 $ 340,000
Less Debt Discount 0 (89,183)
Total Promissory Notes $ 340,000 $ 250,817
v3.23.2
PROMISSORY NOTE (Details Narrative) - USD ($)
12 Months Ended
Dec. 06, 2021
Mar. 04, 2021
Dec. 31, 2022
Dec. 31, 2021
Debt instrument, original issue discount $ 9,000 $ 35,000    
Warrants derivative amount 31,000 265,000    
Debt instrument aggregate discount 40,000 300,000    
Debt instrument face amount $ 2,740 $ 248,077    
Convertible notes, warrant issued to purchase common stock shares       400,000,000
Accrued interest payable     $ 442,888 $ 231,839
Net of debt discount     3,095 0
Discount amount     0 89,183
Auctus Fund [Member]        
Convertible notes, warrant issued to purchase common stock shares 50,000,000 150,000,000    
Promissory note issued $ 40,000 $ 300,000    
Debt instrument, maturity date Dec. 06, 2022 Mar. 04, 2022    
Debt instrument, rate of interest, percentage 12.00% 12.00%    
Warrants price per share $ 0.0008 $ 0.002    
Accrued interest payable     85,809 33,008
Interest expense on notes     52,800 33,008
Auctus Fund [Member] | March 04, 2021 [Member]        
Net of debt discount     300,000 248,077
Discount amount     0 89,183
Auctus Fund [Member] | December 06, 2021 [Member]        
Net of debt discount     40,000 2,740
Discount amount     $ 0 $ 37,260
v3.23.2
CONVERTIBLE NOTES (Details) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Convertible notes payable, current $ 584,729 $ 549,010
Auctus Fund [Member] | Convertible Notes Payable [Member]    
Convertible notes payable, current $ 584,729 $ 549,010
v3.23.2
CONVERTIBLE NOTES (Details Narrative)
1 Months Ended 3 Months Ended 12 Months Ended
Dec. 06, 2021
USD ($)
Mar. 04, 2021
USD ($)
Mar. 07, 2018
USD ($)
integer
Jul. 07, 2017
USD ($)
Jun. 14, 2017
USD ($)
integer
Jan. 13, 2017
USD ($)
integer
Oct. 23, 2019
USD ($)
integer
Mar. 22, 2019
USD ($)
integer
Jul. 25, 2018
USD ($)
integer
Nov. 27, 2017
USD ($)
integer
Sep. 20, 2016
USD ($)
integer
May 20, 2016
USD ($)
integer
Sep. 30, 2022
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
shares
Dec. 31, 2017
USD ($)
shares
May 12, 2022
USD ($)
Nov. 02, 2020
USD ($)
Aug. 04, 2020
USD ($)
Jul. 09, 2018
USD ($)
Feb. 23, 2018
USD ($)
Nov. 02, 2017
USD ($)
Amortization of debt discount                           $ 124,904 $ 462,701                    
Interest expense                           335,953 629,690                    
Convertible promissory notes, original issue discount                           0 89,183                    
Net of debt discount                           3,095 0                    
Convertible notes payable, current                           584,730 549,010                    
Debt conversion, principal amount $ 9,000 $ 35,000                                              
Proceeds from promissory notes                           $ 0 $ 296,000                    
Shares issued upon exercise of warrant | shares                           176,411,500 267,438,920                    
Convertible Notes Payable [Member]                                                  
Accrued interest                           $ 357,080 $ 198,831                    
Convertible Notes Payable [Member] | Auctus Fund 2 [Member]                                                  
Amortization of debt discount                     $ 50,000                            
Interest expense                                   $ 0 $ 35,607            
Convertible promissory notes, original issue discount                     $ 6,750                            
Convertible redeemable note interest rate                     10.00%                            
Convertible promissory notes percentage of stock price trigger                     50.00%                            
Convertible promissory notes, trading days | integer                     25                            
Convertible notes payable, current       $ 76,750             $ 56,750                            
Debt conversion, principal amount                             76,750                    
Proceeds from promissory notes       20,000                                          
Convertible promissory notes, maturity period                     9 months                            
Accrued interest                             $ 83,128                    
Shares issued upon debt conversion | shares                             288,590,075                    
Increase in principal of note       $ 20,000                                          
Convertible Notes Payable [Member] | Power Up Lending Group [Member] | January 13th 2017 [Member]                                                  
Amortization of debt discount           $ 45,000                                      
Interest expense                                   0 40,843            
Convertible promissory notes, original issue discount           $ 2,500                                      
Debt principal amount                                     $ 6,700            
Convertible redeemable note interest rate           8.00%                                      
Convertible promissory notes percentage of stock price trigger           57.50%                                      
Convertible promissory notes, trading days | integer           20                                      
Convertible notes payable, current           $ 45,000                                      
Debt instrument maturity date           Jan. 13, 2018                                      
Convertible shares of common stock | shares                                     30,455,486            
Convertible Notes Payable [Member] | Power Up Lending Group [Member] | June 14th 2017 [Member]                                                  
Amortization of debt discount         $ 7,500                                        
Interest expense                                   0 $ 4,462            
Convertible redeemable note interest rate         12.00%                                        
Convertible promissory notes percentage of stock price trigger         50.00%                                        
Convertible promissory notes, trading days | integer         20                                        
Convertible notes payable, current         $ 7,500                                        
Debt instrument maturity date         Mar. 20, 2018                                        
Convertible Notes Payable [Member] | Auctus Fund5 [Member] | March 7th 2018 [Member]                                                  
Amortization of debt discount     $ 30,000                                            
Interest expense                                   30,000              
Convertible promissory notes, original issue discount     $ 5,000                                            
Net of debt discount                           30,000                      
Common shares issued for conversion of debt (in shares) | shares                             168,027,000                    
Convertible redeemable note interest rate     12.00%                                            
Convertible promissory notes percentage of stock price trigger     50.00%                                            
Convertible promissory notes, trading days | integer     25                                            
Convertible notes payable, current     $ 30,000                                            
Accrued interest                             $ 26,384                    
Convertible Notes Payable [Member] | Auctus Fund 6 [Member] | July 9, 2018 [Member]                                                  
Amortization of debt discount                 $ 48,500                                
Interest expense                                 $ 17,524 $ 30,976              
Convertible promissory notes, original issue discount                                             $ 5,000    
Net of debt discount                           $ 48,500                      
Convertible redeemable note interest rate                 12.00%                                
Convertible promissory notes percentage of stock price trigger                 50.00%                                
Convertible promissory notes, trading days | integer                 25                                
Convertible notes payable, current                 $ 48,500                           $ 43,500    
Convertible promissory notes, maturity period                                   9 years              
Common stock price per share | $ / shares                                 $ 0.0003                
Common stock shares issued | shares                           72,500,000                      
Convertible Notes Payable [Member] | Auctus Fund 7 [Member] | March 22, 2019 [Member]                                                  
Amortization of debt discount               $ 62,500                 $ 62,500                
Convertible promissory notes, original issue discount               $ 9,000                                  
Net of debt discount                           $ 62,500                      
Convertible redeemable note interest rate               12.00%                                  
Convertible promissory notes percentage of stock price trigger               50.00%                                  
Convertible promissory notes, trading days | integer               25                                  
Convertible notes payable, current               $ 62,500                                  
Convertible promissory notes, maturity period                               5 years                  
Common stock price per share | $ / shares                           $ 0.0003                      
Convertible notes, warrant issued to purchase common stock | shares                               209,000,000                  
Convertible Notes Payable [Member] | Auctus Fund 8 [Member] | October 23, 2019 [Member]                                                  
Amortization of debt discount             $ 100,000                                    
Interest expense             $ 25,182                                    
Net of debt discount                           $ 100,000                      
Convertible redeemable note interest rate             12.00%                                    
Convertible promissory notes percentage of stock price trigger             50.00%                                    
Convertible promissory notes, trading days | integer             25                                    
Convertible notes payable, current             $ 100,000                                    
Common stock price per share | $ / shares                           $ 0.0001                      
Convertible notes, warrant issued to purchase common stock | shares                           201,613,143   50,000,000                  
Outstanding units of warrants | shares                           298,398,857                      
Common stock shares issued | shares                           176,411,500                      
Convertible Notes Payable [Member] | Auctus Fund 9 [Member]                                                  
Amortization of debt discount                           $ 31,000                      
Net of debt discount                             31,000                    
Convertible redeemable note interest rate                                           12.00%      
Convertible promissory notes, maturity period                               5 years                  
Common stock price per share | $ / shares                           $ 0.0003                      
Convertible notes, warrant issued to purchase common stock | shares                               206,666,666                  
Convertible notes payable, other current                                           $ 31,000      
Convertible Notes Payable [Member] | Auctus Fund 10 [Member]                                                  
Amortization of debt discount                           $ 225,000                      
Net of debt discount                           $ 225,000                      
Convertible redeemable note interest rate                                         12.00%        
Convertible promissory notes, maturity period                               5 years                  
Debt instrument maturity date                         Nov. 02, 2021                        
Common stock price per share | $ / shares                           $ 0.0001                      
Convertible notes payable, other current                                         $ 225,000        
Shares issued upon exercise of warrant | shares                               2,225,000,000                  
Convertible Notes Payable [Member] | Auctus Fund 13 [Member]                                                  
Amortization of debt discount                           $ 52,000                      
Net of debt discount                           $ 32,625 0                    
Convertible redeemable note interest rate                                       12.00%          
Convertible promissory notes, maturity period                               5 years                  
Common stock price per share | $ / shares                           $ 0.0005                      
Convertible notes payable, other current                                       $ 52,000          
Shares issued upon exercise of warrant | shares                               104,000,000                  
Unamortization of debt discount                           $ 19,375                      
Convertible Notes Payable [Member] | Auctus Fund 14 [Member] | October 31, 2022 [Member]                                                  
Amortization of debt discount                           $ 3,095                      
Convertible redeemable note interest rate                                       12.00%          
Warrant issued to purchase common stock - First warrant | shares                           37,040,000                      
Warrant issued to purchase common stock - Second warrant | shares                           104,000,000                      
Warrant issuence price - First warrant | $ / shares                           $ 0.0005                      
Warrant issuence price - Second warrant | $ / shares                           0.0005                      
Convertible promissory notes, maturity period                               5 years                  
Common stock price per share | $ / shares                           $ 0.0005                      
Convertible notes payable, other current                                       $ 18,520          
Shares issued upon exercise of warrant | shares                               104,000,000                  
Convertible Notes Payable [Member] | Auctus Fund [Member]                                                  
Interest expense                           $ 158,249 133,981                    
Debt conversion, principal amount                             3,746                    
Accrued interest                             $ 5,834                    
Shares issued upon debt conversion | shares                             239,266,512                    
Convertible Notes Payable [Member] | Power Up Lending Group [Member] | November 27th 2017 [Member]                                                  
Interest expense                                   $ 5,030 2,165            
Convertible promissory notes, original issue discount                   $ 7,195                              
Convertible redeemable note interest rate                   12.00%                              
Convertible promissory notes percentage of stock price trigger                   57.50%                              
Convertible promissory notes, trading days | integer                   20                              
Convertible notes payable, current                           50,745                      
Debt instrument maturity date                   Mar. 20, 2018                              
Convertible promissory notes                   $ 50,774                              
Convertible Notes Payable [Member] | Power Up Lending Group [Member] | November 2, 2017 [Member]                                                  
Amortization of debt discount                   $ 53,000                              
Interest expense                                   41,546 11,454            
Convertible redeemable note interest rate                   12.00%                              
Convertible promissory notes percentage of stock price trigger                   50.00%                              
Convertible promissory notes, trading days | integer                   25                              
Convertible notes payable, current                   $ 53,000                           $ 40,000 $ 53,000
Convertible notes increased amount                           58,636                      
Debt conversion, principal amount                             $ 58,636                    
Shares issued upon debt conversion | shares                             166,178,366                    
Debt instrument maturity date                   Aug. 02, 2018                              
Debt conversion converted amount, accrued interest                             $ 52,583                    
Settlement of outstanding principal                                               5,636  
Penalty Amount                                               $ 11,272  
Convertible Notes Payable 8 [Member] | Auctus Fund [Member]                                                  
Amortization of debt discount                       $ 60,000                          
Interest expense                                   0 14,542            
Convertible promissory notes, original issue discount                       $ 7,750                          
Net of debt discount                           $ 1,265 1,265                    
Accrued interest                               $ 12,717 1,153 $ 2,494 5,975            
Debt principal amount                                 $ 40,241   $ 15,278            
Common shares issued for conversion of debt (in shares) | shares                               317,919,774   133,258,300              
Convertible redeemable note interest rate                       10.00%                          
Convertible promissory notes percentage of stock price trigger                       50.00%                          
Convertible promissory notes, trading days | integer                       25                          
Convertible notes payable, current                       $ 67,750                          
Shares issued upon debt conversion | shares                                 1,066,179,950   111,460,000            
Summary of Conversions [Member]                                                  
Debt conversion, principal amount                             $ 139,132                    
Shares issued upon debt conversion | shares                             862,061,953                    
Debt conversion converted amount, accrued interest                             $ 167,920                    
v3.23.2
DERIVATIVE LIABILITY (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
DERIVATIVE LIABILITY  
Balance - December 31, 2021 $ 5,323,107
Addition of new derivative liabilities upon issuance of convertible notes as debt discount (67,670)
Reduction of derivative liabilities from exercise of warrants (116,486)
Addition of new derivative liabilities upon issuance of warrants as debt discount 131,190
Addition of new derivatives liabilities recognized as day one loss on warrants 125,714
Loss (Gain) on change in fair value of the derivative (2,428,612)
Balance - December 31,2022 $ 2,967,243
v3.23.2
DERIVATIVE LIABILITY (Details 1) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
DERIVATIVE LIABILITY    
Day one loss due to derivative liabilities on convertible notes and warrants $ 125,714 $ 385,964
Loss (Gain) on change in fair value of derivative liabilities on convertible notes and warrants (2,428,613) 2,095,436
Loss (Gain) on change in fair value of derivative liabilities $ (2,302,899) $ 2,481,400
v3.23.2
DERIVATIVE LIABILITY (Details 2)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Minimum [Member]    
Expected term 4 months 13 days  
Risk-free interest rate 2.07% 0.03%
Expected average volatility 223.00% 95.00%
Maximum [Member]    
Expected term 9 months 25 days  
Expected average volatility 349.00% 472.00%
Risk-free interest rate 4.73% 0.97%
v3.23.2
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)
Dec. 31, 2022
Dec. 31, 2021
Amount due to related parties $ 542,668 $ 465,168
Director [Member]    
Accrued salaries, current 120,000 120,000
Accrued salaries, payment $ 42,500 $ 43,500
v3.23.2
INCOME TAX (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
INCOME TAX    
Net operating loss carryforward $ 4,345,599 $ 3,820,405
Statutory tax Rate 21.00% 21.00%
Deferred tax asset $ 912,576 $ 802,285
Less: Valuation allowance (912,576) (802,285)
Net deferred assets $ 0 $ 0
v3.23.2
INCOME TAX (Detail Narrative)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
INCOME TAX  
Net operating loss carry forwards, Annual limitation 50.00%
Description of Net operating loss carryforward expiration begin to expire between 2034 and 2037
Net operating loss carryforward $ 4.3
v3.23.2
SUBSEQUENT EVENTS (Details Narrative)
Jan. 04, 2023
USD ($)
Auctus Fund, LLC [Member] | Subsequent Event [Member]  
Convertible promissory note issued $ 25,000

Lingerie Fighting Champi... (PK) (USOTC:BOTY)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Lingerie Fighting Champi... (PK) Charts.
Lingerie Fighting Champi... (PK) (USOTC:BOTY)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Lingerie Fighting Champi... (PK) Charts.