SSOK Sunstock Inc (QB)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended September 30, 2023

 

OR

 

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

 

For the transition period from _________________ to _________________

 

Commission file number 000-54830

 

SUNSTOCK, INC.

(Exact Name of Registrant as Specified in its Charter)

 

SANDGATE ACQUISITION CORPORATION

(Former Name of Registrant as Specified in its Charter)

 

Delaware		46-1856372
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

111 Vista Creek Circle

Sacramento, California 95835

(Address of principal executive offices) (zip code)

 

916-860-9622

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

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

 

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

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock.		SSOK.		None

 

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

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting 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 Exchange Act). Yes ☐ No ☒

 

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

 

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

 

Class		Outstanding at November 13, 2023
Common Stock, par value $0.0001			5,021,857
Preferred Stock, par value $0.0001			-

 

Documents incorporated by reference: None

 

 

 

TABLE OF CONTENTS

 

Part I Financial Information		3
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 4.	Controls and Procedures	19
Part II Other Information		21
Item 1.	Legal Proceedings	21
Item 1A	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3.	Defaults Upon Senior Securities	21
Item 4.	Mine Safety Disclosures	21
Item 5.	Other Information	21
Item 6.	Exhibits	22
	Signatures	23

 

 

PART I — FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

Condensed and Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022 (audited)	4
Unaudited Condensed and Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2023 and 2022	5
Unaudited Condensed and Consolidated Statements of Convertible Preferred Stock and Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2023 and 2022	6
Unaudited Condensed and Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2023 and 2022	7
Notes to Unaudited Condensed and Consolidated Financial Statements	8 - 15

 

 

SUNSTOCK, INC.

CONDENSED AND CONSOLIDATED BALANCE SHEETS

 

		September 30, 2023				December 31, 2022
		(unaudited)				(audited)
ASSETS
Current assets
Cash		$	18,081			$	16,691
Inventory – coins			1,041,875				950,637
Inventory – precious metals			753,490				801,022
Prepaid expenses			15,373				5,155
Total current assets			1,828,819				1,773,505
Property and equipment, net			258				424
Right of use lease asset			1,425				11,114
Total assets		$	1,830,502			$	1,785,043
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses		$	566,371			$	480,137
Operating lease liability – current portion			1,425				11,114
SBA loan – current			7,526				5,047
Loans payable – related parties			12,204				6,000
Total current liabilities			587,526				502,298
SBA loan - net of current portion			142,474				144,953
Total liabilities			730,000				647,251
Stockholders’ equity
Preferred stock; $0.0001 par value, 20,000,000 shares authorized; 0 and 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively			-				-
Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,021,857 and 4,815,857 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively			502				481
Additional paid – in capital			67,279,869				67,053,289
Accumulated deficit			(66,179,869	)			(65,915,978	)
Total stockholders’ equity			1,100,502				1,137,792
Total liabilities, convertible preferred stock, and stockholders’ equity		$	1,830,502			$	1,785,043

 

The accompanying notes are an integral part of the unaudited condensed and consolidated financial statements

 

 

SUNSTOCK, INC.

CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

		2023				2022				2023				2022
		For the three months ended September 30,								For the nine months ended September 30,
		2023				2022				2023				2022
Revenues		$	3,003,336			$	3,287,179			$	9,501,467			$	9,807,089
Cost of revenue			2,971,787				3,256,768				9,389,237				9,633,215
Gross profit			31,549				30,411				112,230				173,874
Operating expenses
Professional fees			15,353				12,793				97,634				98,806
Compensation			-				182				-				738
Lawsuit judgment			77,863				-				77,863				-
Other operating expenses			6,907				7,979				23,388				26,319
Total operating expenses			100,123				20,954				198,885				125,863
Profit (loss) from operations			(68,574	)			9,457				(86,655	)			48,011
Other income (expense)
Unrealized loss on investments in precious metals			(21,556	)			(62,779	)			(47,532	)			(113,775	)
Interest expense			(1,443	)			(1,443	)			(4,329	)			(4,329	)
Interest expense related party			(161	)			(4,637	)			(1,775	)			(11,221	)
Gain on debt extinguishment			-				-				-				30,250
Loss on settlement of related party debt			-				-				(123,600	)			-
Total other income (expense), net			(23,160	)			(68,859	)			(177,236	)			(99,075	)
Income (loss) before provision for income taxes			(91,734	)			(59,402	)			(263,891	)			(51,064	)
Provision for income taxes			-				-				-				-
Net income (loss)		$	(91,734	)		$	(59,402	)		$	(263,891	)		$	(51,064	)
Income (loss) per share – basic and diluted		$	(0.02	)		$	(0.01	)		$	(0.05	)		$	(0.01	)
Weighted average number of common shares outstanding – basic and diluted			5,021,857				4,126,387				4,892,069				4,126,387

 

The accompanying notes are an integral part of the unaudited condensed and consolidated financial statements

 

 

SUNSTOCK, INC.

CONDENSED AND CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND CHANGES IN STOCKHOLDERS’ EQUITY

 

		Shares				Amount				Shares				Amount				In Capital				Deficit				Total
		Convertible Preferred Stock								Common Stock								Additional Paid-				Accumulated
		Shares				Amount				Shares				Amount				In Capital				Deficit				Total
Balance at December 31. 2021 (audited)			-			$	-				4,126,387			$	412			$	62,778,644			$	(62,264,145	)		$	514,911
Net income			-				-				-				-				-				102,893				102,893
Balance at March 31, 2022 (unaudited)			-			$	-				4,126,387			$	412			$	62,778,644			$	(62,161,252	)		$	617,804
Net loss							-								-				-				(94,555	)			(94,555	)
Balance at June 30, 2022 (unaudited)			-			$	-				4,126,387			$	412			$	62,778,644			$	(62,255,807	)		$	523,249
Net loss			-				-				-				-				-				(59,402	)			(59,402	)
Balance at September 30, 2022 (unaudited)			-			$	-				4,126,387			$	412			$	62,778,644			$	(62,315,209	)		$	463,847
Balance at December 31, 2022 (audited)			-			$	-				4,815,857			$	481			$	67,053,289			$	(65,915,978	)		$	1,137,792
Net loss			-				-				-				-				-				(11,646	)			(11,646	)
Balance at March 31, 2023 (unaudited)			-			$	-				4,815,857			$	481			$	67,053,289			$	(65,927,624	)		$	1,126,146
Issuance of common stock for related party notes payable			-				-				206,000				21				226,580				-				226,601
Net loss			-				-				-												(160,511	)			(160,511	)
Balance at June 30, 2023 (unaudited)			-			$	-				5,021,857			$	502			$	67,279,869			$	(66,088,135	)		$	1,192,236
Balance ,beginning value			-			$	-				5,021,857			$	502			$	67,279,869			$	(66,088,135	)		$	1,192,236
Net loss			-				-				-				-				-				(91,734	)			(91,734	)
Net income (loss)			-				-				-				-				-				(91,734	)			(91,734	)
Balance at September 30, 2023 (unaudited)			-			$	-				5,021,857			$	502			$	67,279,869			$	(66,179,869	)		$	1,100,502
Balance , Ending value			-			$	-				5,021,857			$	502			$	67,279,869			$	(66,179,869	)		$	1,100,502

 

The accompanying notes are an integral part of the unaudited condensed and consolidated financial statements

 

 

SUNSTOCK, INC.

CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

		2023				2022
		For the nine months ended September30,
		2023				2022
OPERATING ACTIVITIES
Net income (loss)		$	(263,891	)		$	(51,064	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Unrealized (gain) loss on investment in precious metals			47,532				113,775
Depreciation			166				806
Loss on settlement of related party debt			123,600				-
Gain on extinguishment of debt			-				(30,250	)
Changes in operating assets and liabilities
Inventories – coins			(91,238	)			(160,162	)
Prepaid expenses			(10,218	)			419
Accounts payable and accrued expenses			91,754				(78,233	)
Net cash used in operating activities			(102,295	)			(204,709	)
INVESTING ACTIVITIES
Net cash used in investing activities			-				-
FINANCING ACTIVITIES
Proceeds from loan – related parties			103,685				207,687
Net cash provided by financing activities			103,685				207,687
Net change in cash			1,390				2,978
Cash, beginning of period			16,691				30,168
Cash, end of period		$	18,081			$	33,146
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ACTIVITIES:
Interest		$	-			$	-
Income taxes		$	-			$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Extinguishment of debt		$	-			$	30,250
Shares issued in exchange for related party debt		$	103,000			$	-

 

The accompanying notes are an integral part of the unaudited condensed and consolidated financial statements

 

 

SUNSTOCK, INC.

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NATURE OF OPERATIONS

 

Sunstock, Inc. (“Sunstock” or “the Company”) was incorporated on July 23, 2012, as Sandgate Acquisition Corporation, under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. In July 2013, the Company implemented a change of control by issuing shares to new shareholders, redeeming shares of existing shareholders, electing new officers and directors and accepting the resignations of its then existing officers and directors. In connection with the change of control, the shareholders of the Company and its board of directors unanimously approved the change of the Company’s name from Sandgate Acquisition Corporation to Sunstock, Inc. On July 18, 2013, Jason Chang and Dr. Ramnik S Clair were named as directors of the Company.

 

On October 22, 2018, Sunstock, Inc. acquired all assets and liabilities of Mom’s Silver Shop, Inc. (the “Retail Store”) located in Sacramento, California.

 

The Company’s business plan includes the buying, selling and distribution of precious metals, primarily gold. The Company pursues a “ground to coin” strategy, whereby it seeks to acquire mining assets as well as rights to purchase mining production and to sell these metals primarily through retail channels including their own branded coins. The Company emphasizes investment in enduring assets that we believe may provide ‘resource to retail’ conversion upside. Our goal is to provide our shareholders with an exceptional opportunity to capture value in the precious metals sector without incurring many of the costs and risks associated with actual mining operations.

 

BASIS OF PRESENTATION

 

The accompanying unaudited condensed and consolidated financial statements of Sunstock, Inc. were prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all disclosures required for financial statements prepared in conformity with U.S. GAAP.

 

The accompanying condensed and consolidated balance sheet at December 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed and consolidated financial statements as of September 30, 2023 and for the three and nine months ended September 30, 2023 and 2022, have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the audited consolidated financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the unaudited condensed and consolidated financial statements. The unaudited condensed and consolidated financial statements include all material adjustments (consisting of all normal accruals) necessary to make the condensed and consolidated financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or any future periods.

 

8

 

 

USE OF ESTIMATES

 

The preparation of the unaudited condensed and consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by the Company’s management include realizability and valuation of inventories and value of stock-based transactions.

 

CONCENTRATION OF RISK

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2023 and December 31, 2022.

 

CASH AND CASH EQUIVALENTS

 

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

 

INVENTORIES

 

INVENTORY - COINS

 

The Company acquires collectible coins from both companies and individuals and then marks them up for resale. The inventory is recorded at lower of cost or market or net realizable value. Inventory can fluctuate in relation to when it is purchased and when it is sold. Collectible coins inventory was $1,041,875 at September 30, 2023 compared to $950,637 at December 31, 2022.

 

At each balance sheet date, the Company evaluates its ending inventory quantities on hand and on order and records a provision for excess quantities and obsolescence. Among other factors, the Company considers historical demand and forecasted demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining obsolescence and net realizable value. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the excess or obsolete inventories.

 

INVENTORY – PRECIOUS METALS

 

Inventories of precious metals and coins held for investment at September 30, 2023 include $753,490 of gold and silver bullion and bullion coins and $801,022 at December 31, 2022 and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: 1) published market values attributable to the costs of the raw precious metal, and 2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable sources such as Kitco and Apmex. The Company’s inventory is subsequently recorded at fair market values on a quarterly basis. The fair value of the inventory is determined using pricing and data derived from the markets on which the underlying commodities are traded. Precious metals commodities inventories are classified in Level 1 of the valuation hierarchy as defined later in this section. The Company has continuously experienced a shortage of cash and has had significantly past due obligations. While the Company’s preference is to hold the silver and gold bullion to achieve long-term gains, the bullion is available to pay current obligations should the Company not be able to raise cash through issuance of stock or notes payable. Thus, the Company believes that including the gold and silver bullion in current assets under inventory is appropriate.

 

9

 

 

INVENTORY – PRECIOUS METALS (CONTINUED)

 

The change in fair value of the precious metals was included in the financial statements herein as recorded on the Company’s Statements of Operations as an unrealized loss in precious metal of $21,556 for the three months ended September 30, 2023, an unrealized loss in precious metals of $62,779 for the three months ended September 30, 2022, an unrealized loss in precious metals of $47,532 for the nine months ended September 30, 2023, and an unrealized loss of $113,775 for the nine months ended September 30, 2022.

 

PROPERTY AND EQUIPMENT

 

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years. Any leasehold improvements are amortized at the lesser of the useful life of the asset or the lease term.

 

LONG-LIVED ASSETS

 

The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No impairment charges were incurred during the nine months ended September 30, 2023 and 2022. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue, which could result in impairment of long-lived assets in the future.

 

REVENUE RECOGNITION

 

The Company’s principal activities from which it generates revenue are product sales. Revenue is measured based on considerations specified in a contract with a customer. A contract exists when it becomes a legally enforceable agreement with a customer. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale. Consideration is typically paid at time of sale via credit card, check, or cash when products are sold direct to consumers.

 

A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of a product to customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. The Company has concluded the sale of product and related shipping and handling are accounted for as the single performance obligation.

 

The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled to receive in exchange for transferring goods to the customer. We do not issue refunds.

 

The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product is shipped based on fulfillment by the Company or when a point-of-sale transaction is completed. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales. The Company does not accept returns.

 

10

 

 

INCOME TAXES

 

The Company accounts for income taxes and the related accounts under the liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes.

 

The Company recognizes any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.

 

There are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate.

 

The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had $0 accrued for interest and penalties on each of the Company’s balance sheets at September 30, 2023 and December 31, 2022.

 

INCOME (LOSS) PER COMMON SHARE

 

Basic income (loss) per share represents income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The Company had no potential common shares as of September 30, 2023 and September 30, 2022.

 

FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Company measures the fair value of certain of its financial assets on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

 

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;

 

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, such as derivative liabilities in relation to the conversion feature of notes payable.

 

At September 30, 2023 and December 31, 2022, the Company’s financial instruments include cash, precious metals inventory, coins inventory, SBA loan, and accounts payable and accrued expenses. The carrying amount of cash, precious metals inventory, coins inventory, SBA loan, and accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. Inventory – precious metals is at fair value measured under the Level 1 category.

 

11

 

 

PRINCIPLES OF CONSOLIDATION

 

We consolidate entities that we control due to ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.

 

NOTE 2 - GOING CONCERN

 

The Company has not posted annual operating income since inception. It has an accumulated deficit of $66,179,869 as of September 30, 2023. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and /or obtain additional financing from its stockholders and/or other third parties. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern.

 

These unaudited condensed and consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue is dependent upon financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, successfully locating and negotiate with a business entity for the combination of that target company with the Company.

 

There is no assurance that the Company will ever be profitable. The unaudited condensed and consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

The Company intends to initiate discussions with an undetermined third party in regards to raising funds through a private placement of equity which, if it occurs, will provide the Company with funds to expand its operations and likely eliminate the going concern issue.

 

NOTE 3 – PROPERTY AND EQUIPMENT

 SCHEDULE OF PROPERTY AND EQUIPMENT

		September 30, 2023				December 31, 2022
Furniture and equipment		$	58,460			$	58,460
Less – accumulated depreciation			(58,202	)			(58,036	)
Total property and equipment		$	258			$	424

 

Depreciation expense for the three months ended September 30, 2023 and 2022 was $55 and $211, respectively, and for the nine months ended September 30, 2023 and 2022 was $166 and $805, respectively.

 

NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

 SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES

		September 30, 2023				December 31, 2022
Accrued court decision		$	338,171			$	260,308
Accrued consultant fees			133,691				131,500
Accrued audit fees			14,520				8,089
Accrued dividends – preferred stock			36,326				36,326
Expenses owed related party			-				4,631
Accrued interest payable			18,765				14,436
Accrued interest payable related party			12,431				16,176
Other accrued expenses			12,467				8,671
Total		$	566,371			$	480,137

 

12

 

 

NOTE 5 - RELATED PARTY ACTIVITY

 

During the nine months ended September 30, 2023, the Company was provided loans totaling $103,685 by the Company’s chief executive officer. The loans bear interest at 6% per annum. There was $12,431 in accrued interest at September 30, 2023.

 

During the nine months ended September 30, 2023, the Company issued 206,000 shares of common stock to the Company’s chief executive officer in exchange for $97,480 in loan principal and $5,520 in accrued interest.

 

During the nine months ended September 30, 2022, the Company was provided loans totaling $207,687 by the Company’s chief executive officer. The loans bear interest at 6% per annum. There was $13,292 in accrued interest at September 30, 2022.

 

As of September 30, 2023, the Company had $36,326 in accrued dividends on preferred stock, of which $19,141 was due to the Company’s chief executive officer.

 

The following table is a summary of the activity for Loans payable- related parties principal for the nine months ended September 30, 2023 and September 30, 2022:

 SUMMARY OF ACTIVITY FOR LOANS PAYABLE - RELATED PARTIES

Balance at 12/31/2021		$	153,100
Loan advances			207,687
			-
Balance at 09/30/2022		$	360,787
Balance at 12/31/2022		$	6,000
Loan advances			103,685
Loan principal converted to common stock			(97,480	)
Balance at 09/30/2023		$	12,205

 

NOTE 6 – COMMITMENTS AND CONTINGENCIES

 

The Company leases space for the Retail Store. The lease is for five years and runs through September 2023. The lease calls for payments of $1,305.60 per month for the first year, with a 3% increase per year for years two through five.

 

As of September 30, 2023, the lease term had expired and the Company was on a month-to-month rent. The Company is currently working on a new lease agreement.

 

13

 

 

LITIGATION

 

On August 21, 2020, Boustead Securities, LLC (“Boustead”) filed suit against Sunstock, Inc. (“Sunstock”) in the County of Orange, California. Boustead is an investment banking firm engaged by Sunstock on September 19, 2019 to raise equity. Boustead maintained that Sunstock owed it 87,179 shares of Preferred Stock Warrants and 9,231 shares of Common Stock Warrants. Boustead also sought general damages, interest, and costs of the suit. Sunstock believed that Boustead had not fulfilled its obligations in raising equity and vigorously contested the suit. Sunstock hired an arbitrator but there was no resolution between Sunstock and Boustead. The matter went to trial in September 2021 and on November 2, 2021 the Court determined that Sunstock owed Boustead $260,308 for warrants issued that Sunstock did not honor. $260,308 was accrued and is shown as part of accounts payable and accrued expenses in the balance sheet. See detail in Note 4 above. The warrants are no longer outstanding (see Note 9). All other monetary claims by Boustead were dismissed by the Court. The $260,308 is to be paid in cash. The Company filed an appeal of the judgment on December 9, 2021. On August 17, 2023, the Court found that Sunstock owed Boustead $338,170.87 for damages, attorneys’ fees and costs. Sunstock has accrued an additional $77,863 in the period ended September 30, 2023. $77,863 shows in the statement of operations under lawsuit judgment in operating expenses.

 

In December 2020, a former employee of Sunstock filed a claim with the California Labor Commission regarding claimed back pay owed. A preliminary hearing was held on January 4, 2021 and the Company is currently awaiting the next step.

 

INDEMNITIES AND GUARANTEES

 

The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its facility leases, the Company has agreed to indemnify its lessors for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets.

 

CONTINGENCIES

 

The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Management is actively monitoring the global situation on its financial condition, liquidity operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition or liquidity for the fiscal year 2023. However, to date there has not been a decrease in sales. The Company believes that in this time of uncertainty, individuals are buying collectible coins as a safe haven. The Company is unable to predict if such buying will continue during this time of uncertainty or if the buying will decrease as events change and evolve.

 

14

 

 

NOTE 7 – SBA LOAN

 

In June 2020, the Company received a $150,000 loan (less $100 expense) from the Small Business Administration (“SBA”). The loan is for thirty years, interest is 3.75% per annum, and payments of $731 are monthly beginning twenty-four months after closing.

 SCHEDULE OF FUTURE PAYMENTS OF DEBT

		Remaining Loan Payments
2023		$	14,155
2024			8,940
2025			8,940
2026			8,940
2027			8,940
thereafter			200,405
Total remaining loan payments			250,320
Less: imputed interest			(100,320	)
Total loan liability			150,000
Less: current portion			(7,526	)
Long term loan liability		$	142,474
Weighted average remaining lease term			26.7 years

 

NOTE 8 – PPP LOAN

 

In February and May 2021, the Company received a $15,125 loan and a $15,125 loan from the federal Paycheck Protection Program (“PPP”), respectively. The loans are for five years, interest is 1.0% per annum, and no payments are due until maturity. The loans were forgiven in the first three months of 2022.

 

NOTE 9- STOCKHOLDERS’ EQUITY

 

COMMON STOCK

 

The Company is authorized to issue 100,000,000 shares of common stock and 20,000,000 of preferred stock.

 

During the nine months ended September 30, 2023, the Company issued 206,000 shares of its common stock to its chief executive officer for the conversion of $97,480 of related party notes payable and $5,520 of accrued interest related party.

 

During the nine months ended September 30, 2022, the Company issued no shares of its common stock.

 

NOTE 10 – SUBSEQUENT EVENTS

 

The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the unaudited condensed and consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its condensed and consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. The Company has no subsequent events as of the date of this report.

 

 

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

 

The following information should be read in conjunction with the unaudited condensed and consolidated financial statements and notes thereto appearing elsewhere in this report. For additional context with which to understand our financial condition and results of operations, see the discussion and analysis included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2023, as well as the unaudited condensed and consolidated financial statements and related notes contained therein.

 

Forward Looking Statements

 

Certain statements in this report, including information incorporated by reference, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements reflect current views about future events and financial performance based on certain assumptions. They include opinions, forecasts, intentions, plans, goals, projections, guidance, expectations, beliefs or other statements that are not statements of historical fact. Words such as “may,” “should,” “could,” “would,” “expects,” “plans,” “believes,” “anticipates,” “intends,” “estimates,” “approximates,” “predicts,” or “projects,” or the negative or other variation of such words, and similar expressions may identify a statement as a forward-looking statement. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our business, our goals, strategies, focus and plans, and other characterizations of future events or circumstances, including statements expressing general optimism about future operating results and the development of our products, are forward-looking statements.

 

Although forward-looking statements in this Quarterly Report on Form 10-Q 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 discussed elsewhere in this Quarterly Report on Form 10-Q. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We file reports with the SEC. You can 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. In addition, the SEC maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us.

 

Overview

 

Sunstock, Inc. (“Sunstock” or “the Company”) was incorporated on July 23, 2012, as Sandgate Acquisition Corporation, under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions.

 

On July 18, 2013, the Company changed its name from Sandgate Acquisition Corporation to Sunstock, Inc. On the same date, Jason Chang and Dr. Ramnik S Clair were named as directors of the Company.

 

On October 22, 2018, the Company acquired all assets and liabilities of the Retail Store of Sacramento, California. The Retail Store specializes in buying and selling gold, silver, and rare coins, and is one of the leading precious metals retailers in the greater Sacramento metropolitan area.

 

 

Going Concern

 

The Company has not posted operating income and has not generated cash from operations since inception. It has an accumulated deficit of $66,179,869 as of September 30, 2023. The Company did not generate cash flow from operations for the nine months ended September 30, 2023 and the year ended December 31, 2022. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and /or obtain additional financing from its stockholders and/or other third parties.

 

These unaudited condensed and consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next fiscal year. The continuation of the Company as a going concern is dependent upon financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, successfully locating and negotiate with a business entity for the combination of that target company with the Company.

 

There is no assurance that the Company will ever be profitable. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

The Company intends to initiate discussions with an undetermined third party in regards to raising funds through a private placement of equity which, if it occurs, will provide the Company with funds to expand its operations and likely eliminate the going concern issue.

 

Critical Accounting Policies

 

There have been no material changes from the critical accounting policies as previously discussed in our Annual Report on Form 10-K for the year ended December 31, 2022.

 

Results of Operations

 

Discussion of the Three Months ended September 30, 2023 and 2022

 

The Company generated revenues during the three months ended September 30, 2023 of $3,003,336 as compared to $3,287,179 in revenues posted for the three months ended September 30, 2022. The decrease in revenues is due to lower than expected sales in September 2023.

 

For the three months ended September 30, 2023 and 2022, cost of sales were $2,971,787 and $3,256,768, respectively, which decrease was driven by the decrease in revenues as disclosed above. Professional fees increased to $15,353 from $12,793 for the three months ended September 30, 2023 and 2022, respectively. Compensation decreased to $0 from $182 for the three months ended September 30, 2023 and 2022, respectively. Lawsuit judgment increased to $77,863 from $0 for the three months ended September 30, 2023 and 2022, respectively, due to a final judgment in relation to the Boustead lawsuit. Other operating expenses decreased to $6,907 from $7,979 for the three months ended September 30, 2023 and 2022, respectively.

 

Interest expense was $1,443 and $1,443 for the three months ended September 30, 2023 and 2022, respectively. Interest expense related party decreased to $161 for the three months ended September 30, 2023 from $4,637 for the three months ended September 30, 2022.

 

Unrealized loss on investments in precious metals was $21,556 for the three months ended September 30, 2023 compared to an unrealized loss of $62,779 for the three months ended September 30, 2022 due to a lesser decrease in the price of bullion.

 

 

During the three months ended September 30, 2023, the Company posted a net loss of $91,734 as compared to a net loss of $59,402 for the three months ended September 30, 2022. Such change is primarily related to lawsuit judgment in 2023 partially offset by lower unrealized loss on investments in precious metals in 2023 and lower interest expense related party in 2023.

 

Discussion of the Nine Months ended September 30, 2023 and 2022

 

The Company generated revenues during the nine months ended September 30, 2023 of $9,501,467 as compared to $9,807,089 in revenues posted for the nine months ended September 30, 2022. The decrease in revenues is due to lower than expected sales in September and June 2023.

 

For the nine months ended September 30, 2023 and 2022, cost of sales were $9,389,237 and $9,633,215, respectively, which decrease was driven by the decrease in revenues as disclosed above. Professional fees decreased to $97,634 from $98,806 for the nine months ended September 30, 2023 and 2022, respectively. Compensation decreased to $0 from $738 for the nine months ended September 30, 2023 and 2022, respectively. Lawsuit judgement increased to $77,863 from $0 for the nine months ended September 30, 2023 and 2022, respectively, due to a final judgment in relation to the Boustead lawsuit. Other operating expenses decreased to $23,388 from $26,319 for the nine months ended September 30, 2023 and 2022, respectively.

 

Interest expense was $4,329 and $4,329 for the nine months ended September 30, 2023 and 2022, respectively. Interest expense related party decreased to $1,775 for the nine months ended September 30, 2023 from $11,221 for the nine months ended September 30, 2022.

 

Unrealized loss on investments in precious metals was $47,532 for the nine months ended September 30, 2023 compared to an unrealized loss of $113,775 for the nine months ended September 30, 2022 due to a lesser decrease in the price of bullion.

 

During the nine months ended September 30, 2023, the Company posted a net loss of $263,891 as compared to a net loss of $51,064 for the nine months ended September 30, 2022. Such change is primarily related to lower gross profit in 2023, lawsuit judgment in 2023, loss on settlement of related party debt in 2023, and gain on debt extinguishment in 2022 compared to none in 2023, offset by lower unrealized loss in precious metals in 2023 and lower interest expense related party in 2023.

 

Liquidity and Capital Resources

 

As of September 30, 2023, the Company had $18,081 in cash and $1,795,365 in inventory of precious metals and coins compared to $16,691 in cash and $1,751,659 in inventory of precious metals and coins at December 31, 2022.

 

Net cash used in operating activities totaled $102,295 during the nine months ended September 30, 2023 as compared to net cash used in operating activities of $204,709 during the nine months ended September 30, 2022. Consolidated net loss was $263,891 for the nine months ended September 30, 2023 as compared to consolidated net loss of $51,064 for the nine months ended September 30, 2022. Explanation of the difference between these nine months of 2023 and 2022 are explained above in the results of operations of the Company.

 

Changes in the adjustments to reconcile net income (net loss) for the nine months ended September 30, 2023 and 2022, respectively, consist of unrealized gain or loss on investment in precious metals, depreciation, and gain on extinguishment of debt.

 

Unrealized loss on investment in precious metals was $47,532 for the nine months ended September 30, 2023 and unrealized loss on investment in precious metals was $113,775 for the nine months ended September 30, 2022. Deprecation was $166 and $806, respectively, for the nine months ended September 30, 2023 and 2022. Gain on extinguishment of debt was $0 and $30,250, respectively, for the nine months ended September 30, 2023 and 2022. Loss on settlement of related party debt was $123,600 and $0, respectively, for the nine months ended September 30, 2023 and 2022.

 

Changes in assets and liabilities for inventories, prepaid expenses, and accounts payable and accrued expenses totaled a decrease of $9,702 for the nine months ended September 30, 2023 and a decrease of $237,976 for the nine months ended September 30, 2022.

 

 

No cash was used in investing activities for the nine months ended September 30, 2023 and 2022, respectively.

 

Net cash provided by financing activities was $103,685 for the nine months ended September 30, 2023 and net cash provided by financing activities was $207,687 for the nine months ended September 30, 2022, both from notes payable related party.

 

Off-Balance Sheet Arrangements

 

The Company has not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that would be considered material to investors.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Information not required to be filed by Smaller reporting companies.

 

ITEM 4. CONTROLS AND PROCEDURES

 

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. Management must evaluate its internal controls over financial reporting, as required by Sarbanes-Oxley Act, Section 404 (a). The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles or GAAP.

 

As of September 30, 2023, management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in the 2013 Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of the Company’s internal controls over financial reporting that adversely affected its internal controls and that may be considered to be material weaknesses.

 

Material Weaknesses:

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

The material weaknesses identified are:

 

1. the Company does not have accounting personnel that have adequate technical accounting skills to identify terms in agreements that would have material accounting implications on the Company’s consolidated financial statements in accordance with US GAAP, such as permanent vs. temporary equity treatment of the Company’s preferred stock in accordance with ASC 480.

 

2.the Company does not obtain and retain supporting documentation over the precious metal trade dates and quantities traded and does not properly record the realized gain/loss on the trade according to the fair market value of the items traded on a given date.

 

3.the Company has an inadequate number of personnel that could accurately and timely record and report the Company’s consolidated financial statements in accordance with US GAAP.

 

 

ITEM 4. CONTROLS AND PROCEDURES (CONTINUED)

 

4. the Company does not perform formal risk assessments over financial reporting and does not evaluate its internal control processes.

 

Notwithstanding the existence of these material weaknesses in internal control over financial reporting, we believe that the financial statements in this Quarterly on Form 10-Q fairly present, in all material respects, our financial condition in conformity with U.S. generally accepted accounting principles (GAAP). Further, we do not believe the material weaknesses identified had an impact on prior financial statements.

 

Material Weaknesses:

 

Remediation:

 

As part of our ongoing remedial efforts, we have and will continue to, among other things:

 

1. Expand our accounting policy and controls organization by hiring qualified accounting and finance personnel;

 

2. Increase our efforts to educate both our existing and expanded accounting policy and control organization on the application of the internal control structure;

 

3. Emphasize with management the importance of our internal control structure;

 

4. Seek outside consulting services where our existing accounting policy and control organization believes the complexity of the existing exceeds our internal capabilities.

 

5. Plan to implement improved accounting systems.

 

We believe that the foregoing actions will improve our internal control over financial reporting, as well as our disclosure controls and procedures. When funds permit, we intend to perform such procedures and commit such resources as necessary to continue to allow us to overcome or mitigate these material weaknesses such that we can make timely and accurate quarterly and annual financial filings until such time as those material weaknesses are fully addressed and remediated.

 

Changes in Internal Control Over Financial Reporting

 

There have been no changes in the Company’s internal controls over financial reporting during its current fiscal quarter that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

 

 

PART II — OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

On August 21, 2020, Boustead Securities, LLC (“Boustead”) filed suit against Sunstock, Inc. (“Sunstock”) in the County of Orange, California. Boustead is an investment banking firm engaged by Sunstock on September 19, 2019 to raise equity. Boustead maintained that Sunstock owed it 87,179 shares of Preferred Stock Warrants and 9,231 shares of Common Stock Warrants. Boustead also sought seeking general damages, interest, and costs of the suit. Sunstock believed that Boustead had not fulfilled its obligations in raising equity and vigorously contested the suit. Sunstock hired an arbitrator but there was no resolution between Sunstock and Boustead. The matter went to trial in September 2021 and on November 2, 2021 the Court determined that Sunstock owed Boustead $260,308 for warrants issued that Sunstock did not honor. $260,308 was accrued and is shown as part of accounts payable and accrued expenses in the balance sheet. See detail in Note 4 above. The warrants are no longer outstanding. All other monetary claims by Boustead were dismissed by the Court. The $260,308 is to be paid in cash. The Company filed an appeal of the judgment on December 9, 2021. On August 17, 2023, the Court found that Sunstock owed Boustead $338,170.87 for damages, attorneys’ fees and costs. Sunstock has accrued an additional $77,863 in the period ended September 30, 2023. $77,863 shows in the statement of operations under lawsuit judgment in operating expenses.

 

In December 2020, a former employee of Sunstock filed a claim with the California Labor Commission regarding claimed back pay owed. A preliminary hearing was held on January 4, 2021 and the Company is currently awaiting the next step.

 

ITEM 1A. RISK FACTORS

 

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

 

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

 

During the nine months ended September 30, 2023, the Company issued 206,000 unregistered securities.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

(a) Not applicable.

 

(b) Item 407(c)(3) of Regulation S-K:

 

During the nine months covered by this Report, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

 

 

ITEM 6. EXHIBITS

 

(a) Exhibits

 

31.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

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

 

	SUNSTOCK, INC.
Dated November 13, 2023	By:	/s/ Jason C. Chang
		Jason C. Chang
		President, Chief Executive Officer, Chief Financial Officer

 

Dated November 13, 2023	By:	/s/ Ramnik Clair
		Ramnik Clair
		Vice President, Board Member

 

 

 

EXHIBIT 31.1

 

CERTIFICATION PURSUANT TO SECTION 302

 

I, Jason C. Chang, certify that:

 

1. I have reviewed this Form 10-Q for the period ended September 30, 2023 of Sunstock, Inc.

 

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

 

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

 

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

 

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

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

Dated: November 13, 2023	By:	/s/ Jason C. Chang
		Jason C. Chang
		President, Chief Financial Officer
		(Principal Executive and Accounting Officer)

 

 

 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO SECTION 906

 

Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, the undersigned officer of Sunstock Inc. (the “Company”), hereby certify to my knowledge that:

 

The Report on Form 10-Q for the period ended September 30, 2023 of the Company fully complies, in all material respects, with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly represents, in all material respects, the financial condition and results of operations of the Company.

 

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

 

Dated: November 13, 2023	By:	/s/ Jason C. Chang
		Jason C. Chang
		President, Chief Financial Officer
		(Principal Executive and Accounting Officer)

 

 

v3.23.3

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 13, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-54830
Entity Registrant Name	SUNSTOCK, INC.
Entity Central Index Key	0001559157
Entity Tax Identification Number	46-1856372
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	111 Vista Creek Circle
Entity Address, City or Town	Sacramento
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95835
City Area Code	916
Local Phone Number	860-9622
Trading Symbol	SSOK.
Title of 12(g) Security	Common Stock.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,021,857

v3.23.3

Condensed and Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 18,081	$ 16,691
Inventory – coins	1,041,875	950,637
Inventory – precious metals	753,490	801,022
Prepaid expenses	15,373	5,155
Total current assets	1,828,819	1,773,505
Property and equipment, net	258	424
Right of use lease asset	1,425	11,114
Total assets	1,830,502	1,785,043
Current liabilities
Accounts payable and accrued expenses	566,371	480,137
Operating lease liability – current portion	1,425	11,114
SBA loan – current	7,526	5,047
Total current liabilities	587,526	502,298
SBA loan - net of current portion	142,474	144,953
Total liabilities	730,000	647,251
Stockholders’ equity
Preferred stock; $0.0001 par value, 20,000,000 shares authorized; 0 and 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
Common stock, $0.0001 par value, 100,000,000 shares authorized; 5,021,857 and 4,815,857 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	502	481
Additional paid – in capital	67,279,869	67,053,289
Accumulated deficit	(66,179,869)	(65,915,978)
Total stockholders’ equity	1,100,502	1,137,792
Total liabilities, convertible preferred stock, and stockholders’ equity	1,830,502	1,785,043
Related Party [Member]
Current liabilities
Loans payable – related parties	$ 12,204	$ 6,000

v3.23.3

Condensed and Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	5,021,857	4,815,857
Common stock, shares outstanding	5,021,857	4,815,857

v3.23.3

Condensed and Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Revenues	$ 3,003,336	$ 3,287,179	$ 9,501,467	$ 9,807,089
Cost of revenue	2,971,787	3,256,768	9,389,237	9,633,215
Gross profit	31,549	30,411	112,230	173,874
Operating expenses
Professional fees	15,353	12,793	97,634	98,806
Compensation		182		738
Lawsuit judgment	77,863		77,863
Other operating expenses	6,907	7,979	23,388	26,319
Total operating expenses	100,123	20,954	198,885	125,863
Profit (loss) from operations	(68,574)	9,457	(86,655)	48,011
Other income (expense)
Unrealized loss on investments in precious metals	(21,556)	(62,779)	(47,532)	(113,775)
Gain on debt extinguishment				30,250
Loss on settlement of related party debt			(123,600)
Total other income (expense), net	(23,160)	(68,859)	(177,236)	(99,075)
Income (loss) before provision for income taxes	(91,734)	(59,402)	(263,891)	(51,064)
Provision for income taxes
Net income (loss)	$ (91,734)	$ (59,402)	$ (263,891)	$ (51,064)
Income (loss) per share - basic	$ (0.02)	$ (0.01)	$ (0.05)	$ (0.01)
Income (loss) per share - diluted	$ (0.02)	$ (0.01)	$ (0.05)	$ (0.01)
Weighted average number of common shares outstanding - basic	5,021,857	4,126,387	4,892,069	4,126,387
Weighted average number of common shares outstanding - diluted	5,021,857	4,126,387	4,892,069	4,126,387
Nonrelated Party [Member]
Other income (expense)
Interest expense related party	$ (1,443)	$ (1,443)	$ (4,329)	$ (4,329)
Related Party [Member]
Other income (expense)
Interest expense related party	$ (161)	$ (4,637)	$ (1,775)	$ (11,221)

v3.23.3

Condensed Consolidated Statements of Convertible Preferred Stock and Changes in Stockholders' Equity - USD ($)	Convertible Preferred Stock [Member] Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance ,beginning value at Dec. 31, 2021		$ 412	$ 62,778,644	$ (62,264,145)	$ 514,911
Beginning balance, shares at Dec. 31, 2021		4,126,387
Net income (loss)				102,893	102,893
Balance , Ending value at Mar. 31, 2022		$ 412	62,778,644	(62,161,252)	617,804
End balance, shares at Mar. 31, 2022		4,126,387
Balance ,beginning value at Dec. 31, 2021		$ 412	62,778,644	(62,264,145)	514,911
Beginning balance, shares at Dec. 31, 2021		4,126,387
Net income (loss)					(51,064)
Balance , Ending value at Sep. 30, 2022		$ 412	62,778,644	(62,315,209)	463,847
End balance, shares at Sep. 30, 2022		4,126,387
Balance ,beginning value at Mar. 31, 2022		$ 412	62,778,644	(62,161,252)	617,804
Beginning balance, shares at Mar. 31, 2022		4,126,387
Net income (loss)				(94,555)	(94,555)
Balance , Ending value at Jun. 30, 2022		$ 412	62,778,644	(62,255,807)	523,249
End balance, shares at Jun. 30, 2022		4,126,387
Net income (loss)				(59,402)	(59,402)
Balance , Ending value at Sep. 30, 2022		$ 412	62,778,644	(62,315,209)	463,847
End balance, shares at Sep. 30, 2022		4,126,387
Balance ,beginning value at Dec. 31, 2022		$ 481	67,053,289	(65,915,978)	1,137,792
Beginning balance, shares at Dec. 31, 2022		4,815,857
Net income (loss)				(11,646)	(11,646)
Balance , Ending value at Mar. 31, 2023		$ 481	67,053,289	(65,927,624)	1,126,146
End balance, shares at Mar. 31, 2023		4,815,857
Balance ,beginning value at Dec. 31, 2022		$ 481	67,053,289	(65,915,978)	1,137,792
Beginning balance, shares at Dec. 31, 2022		4,815,857
Net income (loss)					(263,891)
Balance , Ending value at Sep. 30, 2023		$ 502	67,279,869	(66,179,869)	1,100,502
End balance, shares at Sep. 30, 2023		5,021,857
Balance ,beginning value at Mar. 31, 2023		$ 481	67,053,289	(65,927,624)	1,126,146
Beginning balance, shares at Mar. 31, 2023		4,815,857
Net income (loss)				(160,511)	(160,511)
Issuance of common stock for related party notes payable		$ 21	226,580		226,601
Issuance of common stock for related party notes payable, shares		206,000
Balance , Ending value at Jun. 30, 2023		$ 502	67,279,869	(66,088,135)	1,192,236
End balance, shares at Jun. 30, 2023		5,021,857
Net income (loss)				(91,734)	(91,734)
Balance , Ending value at Sep. 30, 2023		$ 502	$ 67,279,869	$ (66,179,869)	$ 1,100,502
End balance, shares at Sep. 30, 2023		5,021,857

v3.23.3

Condensed and Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
OPERATING ACTIVITIES
Net income (loss)	$ (91,734)	$ (59,402)	$ (263,891)	$ (51,064)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Unrealized (gain) loss on investment in precious metals	21,556	62,779	47,532	113,775
Depreciation			166	806
Loss on settlement of related party debt			123,600
Gain on extinguishment of debt				(30,250)
Changes in operating assets and liabilities
Inventories – coins			(91,238)	(160,162)
Prepaid expenses			(10,218)	419
Accounts payable and accrued expenses			91,754	(78,233)
Net cash used in operating activities			(102,295)	(204,709)
INVESTING ACTIVITIES
Net cash used in investing activities
FINANCING ACTIVITIES
Proceeds from loan – related parties			103,685	207,687
Net cash provided by financing activities			103,685	207,687
Net change in cash			1,390	2,978
Cash, beginning of period			16,691	30,168
Cash, end of period	$ 18,081	$ 33,146	18,081	33,146
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ACTIVITIES:
Interest
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Extinguishment of debt				30,250
Shares issued in exchange for related party debt			$ 103,000

v3.23.3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   NATURE OF OPERATIONS   Sunstock, Inc. (“Sunstock” or “the Company”) was incorporated on July 23, 2012, as Sandgate Acquisition Corporation, under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. In July 2013, the Company implemented a change of control by issuing shares to new shareholders, redeeming shares of existing shareholders, electing new officers and directors and accepting the resignations of its then existing officers and directors. In connection with the change of control, the shareholders of the Company and its board of directors unanimously approved the change of the Company’s name from Sandgate Acquisition Corporation to Sunstock, Inc. On July 18, 2013, Jason Chang and Dr. Ramnik S Clair were named as directors of the Company.   On October 22, 2018, Sunstock, Inc. acquired all assets and liabilities of Mom’s Silver Shop, Inc. (the “Retail Store”) located in Sacramento, California.   The Company’s business plan includes the buying, selling and distribution of precious metals, primarily gold. The Company pursues a “ground to coin” strategy, whereby it seeks to acquire mining assets as well as rights to purchase mining production and to sell these metals primarily through retail channels including their own branded coins. The Company emphasizes investment in enduring assets that we believe may provide ‘resource to retail’ conversion upside. Our goal is to provide our shareholders with an exceptional opportunity to capture value in the precious metals sector without incurring many of the costs and risks associated with actual mining operations.   BASIS OF PRESENTATION   The accompanying unaudited condensed and consolidated financial statements of Sunstock, Inc. were prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all disclosures required for financial statements prepared in conformity with U.S. GAAP.   The accompanying condensed and consolidated balance sheet at December 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed and consolidated financial statements as of September 30, 2023 and for the three and nine months ended September 30, 2023 and 2022, have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the audited consolidated financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the unaudited condensed and consolidated financial statements. The unaudited condensed and consolidated financial statements include all material adjustments (consisting of all normal accruals) necessary to make the condensed and consolidated financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or any future periods.     USE OF ESTIMATES   The preparation of the unaudited condensed and consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by the Company’s management include realizability and valuation of inventories and value of stock-based transactions.   CONCENTRATION OF RISK   Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2023 and December 31, 2022.   CASH AND CASH EQUIVALENTS   The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.   INVENTORIES   INVENTORY - COINS   The Company acquires collectible coins from both companies and individuals and then marks them up for resale. The inventory is recorded at lower of cost or market or net realizable value. Inventory can fluctuate in relation to when it is purchased and when it is sold. Collectible coins inventory was $1,041,875 at September 30, 2023 compared to $950,637 at December 31, 2022.   At each balance sheet date, the Company evaluates its ending inventory quantities on hand and on order and records a provision for excess quantities and obsolescence. Among other factors, the Company considers historical demand and forecasted demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining obsolescence and net realizable value. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the excess or obsolete inventories.   INVENTORY – PRECIOUS METALS   Inventories of precious metals and coins held for investment at September 30, 2023 include $753,490 of gold and silver bullion and bullion coins and $801,022 at December 31, 2022 and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: 1) published market values attributable to the costs of the raw precious metal, and 2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable sources such as Kitco and Apmex. The Company’s inventory is subsequently recorded at fair market values on a quarterly basis. The fair value of the inventory is determined using pricing and data derived from the markets on which the underlying commodities are traded. Precious metals commodities inventories are classified in Level 1 of the valuation hierarchy as defined later in this section. The Company has continuously experienced a shortage of cash and has had significantly past due obligations. While the Company’s preference is to hold the silver and gold bullion to achieve long-term gains, the bullion is available to pay current obligations should the Company not be able to raise cash through issuance of stock or notes payable. Thus, the Company believes that including the gold and silver bullion in current assets under inventory is appropriate.     INVENTORY – PRECIOUS METALS (CONTINUED)   The change in fair value of the precious metals was included in the financial statements herein as recorded on the Company’s Statements of Operations as an unrealized loss in precious metal of $21,556 for the three months ended September 30, 2023, an unrealized loss in precious metals of $62,779 for the three months ended September 30, 2022, an unrealized loss in precious metals of $47,532 for the nine months ended September 30, 2023, and an unrealized loss of $113,775 for the nine months ended September 30, 2022.   PROPERTY AND EQUIPMENT   Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years. Any leasehold improvements are amortized at the lesser of the useful life of the asset or the lease term.   LONG-LIVED ASSETS   The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No impairment charges were incurred during the nine months ended September 30, 2023 and 2022. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue, which could result in impairment of long-lived assets in the future.   REVENUE RECOGNITION   The Company’s principal activities from which it generates revenue are product sales. Revenue is measured based on considerations specified in a contract with a customer. A contract exists when it becomes a legally enforceable agreement with a customer. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale. Consideration is typically paid at time of sale via credit card, check, or cash when products are sold direct to consumers.   A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of a product to customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. The Company has concluded the sale of product and related shipping and handling are accounted for as the single performance obligation.   The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled to receive in exchange for transferring goods to the customer. We do not issue refunds.   The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product is shipped based on fulfillment by the Company or when a point-of-sale transaction is completed. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales. The Company does not accept returns.     INCOME TAXES   The Company accounts for income taxes and the related accounts under the liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes.   The Company recognizes any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.   There are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate.   The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had $0 accrued for interest and penalties on each of the Company’s balance sheets at September 30, 2023 and December 31, 2022.   INCOME (LOSS) PER COMMON SHARE   Basic income (loss) per share represents income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The Company had no potential common shares as of September 30, 2023 and September 30, 2022.   FAIR VALUE OF FINANCIAL INSTRUMENTS   The Company measures the fair value of certain of its financial assets on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:   Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;   Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and   Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, such as derivative liabilities in relation to the conversion feature of notes payable.   At September 30, 2023 and December 31, 2022, the Company’s financial instruments include cash, precious metals inventory, coins inventory, SBA loan, and accounts payable and accrued expenses. The carrying amount of cash, precious metals inventory, coins inventory, SBA loan, and accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. Inventory – precious metals is at fair value measured under the Level 1 category.     PRINCIPLES OF CONSOLIDATION   We consolidate entities that we control due to ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.

v3.23.3

GOING CONCERN	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 2 - GOING CONCERN   The Company has not posted annual operating income since inception. It has an accumulated deficit of $66,179,869 as of September 30, 2023. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and /or obtain additional financing from its stockholders and/or other third parties. Therefore, there is substantial doubt about the Company’s ability to continue as a going concern.   These unaudited condensed and consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue is dependent upon financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, successfully locating and negotiate with a business entity for the combination of that target company with the Company.   There is no assurance that the Company will ever be profitable. The unaudited condensed and consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.   The Company intends to initiate discussions with an undetermined third party in regards to raising funds through a private placement of equity which, if it occurs, will provide the Company with funds to expand its operations and likely eliminate the going concern issue.

v3.23.3

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 3 – PROPERTY AND EQUIPMENT  SCHEDULE OF PROPERTY AND EQUIPMENT     September 30, 2023     December 31, 2022   Furniture and equipment   $ 58,460     $ 58,460   Less – accumulated depreciation     (58,202 )     (58,036 ) Total property and equipment   $ 258     $ 424     Depreciation expense for the three months ended September 30, 2023 and 2022 was $55 and $211, respectively, and for the nine months ended September 30, 2023 and 2022 was $166 and $805, respectively.

v3.23.3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 4 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES  SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES     September 30, 2023     December 31, 2022   Accrued court decision   $ 338,171     $ 260,308   Accrued consultant fees     133,691       131,500   Accrued audit fees     14,520       8,089   Accrued dividends – preferred stock     36,326       36,326   Expenses owed related party     -       4,631   Accrued interest payable     18,765       14,436   Accrued interest payable related party     12,431       16,176   Other accrued expenses     12,467       8,671   Total   $ 566,371     $ 480,137

v3.23.3

RELATED PARTY ACTIVITY	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY ACTIVITY	NOTE 5 - RELATED PARTY ACTIVITY   During the nine months ended September 30, 2023, the Company was provided loans totaling $103,685 by the Company’s chief executive officer. The loans bear interest at 6% per annum. There was $12,431 in accrued interest at September 30, 2023.   During the nine months ended September 30, 2023, the Company issued 206,000 shares of common stock to the Company’s chief executive officer in exchange for $97,480 in loan principal and $5,520 in accrued interest.   During the nine months ended September 30, 2022, the Company was provided loans totaling $207,687 by the Company’s chief executive officer. The loans bear interest at 6% per annum. There was $13,292 in accrued interest at September 30, 2022.   As of September 30, 2023, the Company had $36,326 in accrued dividends on preferred stock, of which $19,141 was due to the Company’s chief executive officer.   The following table is a summary of the activity for Loans payable- related parties principal for the nine months ended September 30, 2023 and September 30, 2022:  SUMMARY OF ACTIVITY FOR LOANS PAYABLE - RELATED PARTIES Balance at 12/31/2021   $ 153,100   Loan advances     207,687         -   Balance at 09/30/2022   $ 360,787             Balance at 12/31/2022   $ 6,000   Loan advances     103,685   Loan principal converted to common stock     (97,480 ) Balance at 09/30/2023   $ 12,205

v3.23.3

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6 – COMMITMENTS AND CONTINGENCIES   The Company leases space for the Retail Store. The lease is for five years and runs through September 2023. The lease calls for payments of $1,305.60 per month for the first year, with a 3% increase per year for years two through five.   As of September 30, 2023, the lease term had expired and the Company was on a month-to-month rent. The Company is currently working on a new lease agreement.     LITIGATION   On August 21, 2020, Boustead Securities, LLC (“Boustead”) filed suit against Sunstock, Inc. (“Sunstock”) in the County of Orange, California. Boustead is an investment banking firm engaged by Sunstock on September 19, 2019 to raise equity. Boustead maintained that Sunstock owed it 87,179 shares of Preferred Stock Warrants and 9,231 shares of Common Stock Warrants. Boustead also sought general damages, interest, and costs of the suit. Sunstock believed that Boustead had not fulfilled its obligations in raising equity and vigorously contested the suit. Sunstock hired an arbitrator but there was no resolution between Sunstock and Boustead. The matter went to trial in September 2021 and on November 2, 2021 the Court determined that Sunstock owed Boustead $260,308 for warrants issued that Sunstock did not honor. $260,308 was accrued and is shown as part of accounts payable and accrued expenses in the balance sheet. See detail in Note 4 above. The warrants are no longer outstanding (see Note 9). All other monetary claims by Boustead were dismissed by the Court. The $260,308 is to be paid in cash. The Company filed an appeal of the judgment on December 9, 2021. On August 17, 2023, the Court found that Sunstock owed Boustead $338,170.87 for damages, attorneys’ fees and costs. Sunstock has accrued an additional $77,863 in the period ended September 30, 2023. $77,863 shows in the statement of operations under lawsuit judgment in operating expenses.   In December 2020, a former employee of Sunstock filed a claim with the California Labor Commission regarding claimed back pay owed. A preliminary hearing was held on January 4, 2021 and the Company is currently awaiting the next step.   INDEMNITIES AND GUARANTEES   The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its facility leases, the Company has agreed to indemnify its lessors for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying balance sheets.   CONTINGENCIES   The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Management is actively monitoring the global situation on its financial condition, liquidity operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition or liquidity for the fiscal year 2023. However, to date there has not been a decrease in sales. The Company believes that in this time of uncertainty, individuals are buying collectible coins as a safe haven. The Company is unable to predict if such buying will continue during this time of uncertainty or if the buying will decrease as events change and evolve.

v3.23.3

SBA LOAN	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
SBA LOAN	NOTE 7 – SBA LOAN   In June 2020, the Company received a $150,000 loan (less $100 expense) from the Small Business Administration (“SBA”). The loan is for thirty years, interest is 3.75% per annum, and payments of $731 are monthly beginning twenty-four months after closing.  SCHEDULE OF FUTURE PAYMENTS OF DEBT     Remaining Loan Payments   2023   $ 14,155   2024     8,940   2025     8,940   2026     8,940   2027     8,940   thereafter     200,405   Total remaining loan payments     250,320   Less: imputed interest     (100,320 ) Total loan liability     150,000   Less: current portion     (7,526 ) Long term loan liability   $ 142,474             Weighted average remaining lease term     26.7 years

v3.23.3

PPP LOAN	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
PPP LOAN	NOTE 8 – PPP LOAN   In February and May 2021, the Company received a $15,125 loan and a $15,125 loan from the federal Paycheck Protection Program (“PPP”), respectively. The loans are for five years, interest is 1.0% per annum, and no payments are due until maturity. The loans were forgiven in the first three months of 2022.

v3.23.3

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 9- STOCKHOLDERS’ EQUITY   COMMON STOCK   The Company is authorized to issue 100,000,000 shares of common stock and 20,000,000 of preferred stock.   During the nine months ended September 30, 2023, the Company issued 206,000 shares of its common stock to its chief executive officer for the conversion of $97,480 of related party notes payable and $5,520 of accrued interest related party.   During the nine months ended September 30, 2022, the Company issued no shares of its common stock.

v3.23.3

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS   The Company follows the guidance in FASB ASC Topic 855, Subsequent Events (“ASC 855”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are available to be issued. ASC 855 sets forth (i) the period after the balance sheet date during which management of a reporting entity evaluates events or transactions that may occur for potential recognition or disclosure in the unaudited condensed and consolidated financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its condensed and consolidated financial statements, and (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. The Company has no subsequent events as of the date of this report.

v3.23.3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS   Sunstock, Inc. (“Sunstock” or “the Company”) was incorporated on July 23, 2012, as Sandgate Acquisition Corporation, under the laws of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. In July 2013, the Company implemented a change of control by issuing shares to new shareholders, redeeming shares of existing shareholders, electing new officers and directors and accepting the resignations of its then existing officers and directors. In connection with the change of control, the shareholders of the Company and its board of directors unanimously approved the change of the Company’s name from Sandgate Acquisition Corporation to Sunstock, Inc. On July 18, 2013, Jason Chang and Dr. Ramnik S Clair were named as directors of the Company.   On October 22, 2018, Sunstock, Inc. acquired all assets and liabilities of Mom’s Silver Shop, Inc. (the “Retail Store”) located in Sacramento, California.   The Company’s business plan includes the buying, selling and distribution of precious metals, primarily gold. The Company pursues a “ground to coin” strategy, whereby it seeks to acquire mining assets as well as rights to purchase mining production and to sell these metals primarily through retail channels including their own branded coins. The Company emphasizes investment in enduring assets that we believe may provide ‘resource to retail’ conversion upside. Our goal is to provide our shareholders with an exceptional opportunity to capture value in the precious metals sector without incurring many of the costs and risks associated with actual mining operations.
BASIS OF PRESENTATION	BASIS OF PRESENTATION   The accompanying unaudited condensed and consolidated financial statements of Sunstock, Inc. were prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all disclosures required for financial statements prepared in conformity with U.S. GAAP.   The accompanying condensed and consolidated balance sheet at December 31, 2022, has been derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying unaudited condensed and consolidated financial statements as of September 30, 2023 and for the three and nine months ended September 30, 2023 and 2022, have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements, and should be read in conjunction with the audited consolidated financial statements and related notes to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the unaudited condensed and consolidated financial statements. The unaudited condensed and consolidated financial statements include all material adjustments (consisting of all normal accruals) necessary to make the condensed and consolidated financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or any future periods.
USE OF ESTIMATES	USE OF ESTIMATES   The preparation of the unaudited condensed and consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by the Company’s management include realizability and valuation of inventories and value of stock-based transactions.
CONCENTRATION OF RISK	CONCENTRATION OF RISK   Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of September 30, 2023 and December 31, 2022.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS   The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
INVENTORIES	INVENTORIES   INVENTORY - COINS   The Company acquires collectible coins from both companies and individuals and then marks them up for resale. The inventory is recorded at lower of cost or market or net realizable value. Inventory can fluctuate in relation to when it is purchased and when it is sold. Collectible coins inventory was $1,041,875 at September 30, 2023 compared to $950,637 at December 31, 2022.   At each balance sheet date, the Company evaluates its ending inventory quantities on hand and on order and records a provision for excess quantities and obsolescence. Among other factors, the Company considers historical demand and forecasted demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining obsolescence and net realizable value. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Provisions are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered permanent adjustments to the cost basis of the excess or obsolete inventories.   INVENTORY – PRECIOUS METALS   Inventories of precious metals and coins held for investment at September 30, 2023 include $753,490 of gold and silver bullion and bullion coins and $801,022 at December 31, 2022 and are acquired and initially recorded at fair market value. The fair market value of the bullion and bullion coins is comprised of two components: 1) published market values attributable to the costs of the raw precious metal, and 2) a published premium paid at acquisition of the metal. The premium is attributable to the additional value of the product in its finished goods form and the market value attributable solely to the premium may be readily determined, as it is published by multiple reputable sources such as Kitco and Apmex. The Company’s inventory is subsequently recorded at fair market values on a quarterly basis. The fair value of the inventory is determined using pricing and data derived from the markets on which the underlying commodities are traded. Precious metals commodities inventories are classified in Level 1 of the valuation hierarchy as defined later in this section. The Company has continuously experienced a shortage of cash and has had significantly past due obligations. While the Company’s preference is to hold the silver and gold bullion to achieve long-term gains, the bullion is available to pay current obligations should the Company not be able to raise cash through issuance of stock or notes payable. Thus, the Company believes that including the gold and silver bullion in current assets under inventory is appropriate.     INVENTORY – PRECIOUS METALS (CONTINUED)   The change in fair value of the precious metals was included in the financial statements herein as recorded on the Company’s Statements of Operations as an unrealized loss in precious metal of $21,556 for the three months ended September 30, 2023, an unrealized loss in precious metals of $62,779 for the three months ended September 30, 2022, an unrealized loss in precious metals of $47,532 for the nine months ended September 30, 2023, and an unrealized loss of $113,775 for the nine months ended September 30, 2022.
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT   Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years. Any leasehold improvements are amortized at the lesser of the useful life of the asset or the lease term.
LONG-LIVED ASSETS	LONG-LIVED ASSETS   The Company reviews the carrying values of its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized and measured using the fair value of the related asset. No impairment charges were incurred during the nine months ended September 30, 2023 and 2022. There can be no assurance, however, that market conditions will not change or demand for the Company’s services will continue, which could result in impairment of long-lived assets in the future.
REVENUE RECOGNITION	REVENUE RECOGNITION   The Company’s principal activities from which it generates revenue are product sales. Revenue is measured based on considerations specified in a contract with a customer. A contract exists when it becomes a legally enforceable agreement with a customer. These contracts define each party’s rights, payment terms and other contractual terms and conditions of the sale. Consideration is typically paid at time of sale via credit card, check, or cash when products are sold direct to consumers.   A performance obligation is a promise in a contract to transfer a distinct product to the customer, which for the Company is transfer of a product to customers. Performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract, whereby the transfer of the goods is separately identifiable from other promises in the contract. The Company has concluded the sale of product and related shipping and handling are accounted for as the single performance obligation.   The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the customer receives the benefit of the performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled to receive in exchange for transferring goods to the customer. We do not issue refunds.   The Company recognizes revenue when it satisfies a performance obligation in a contract by transferring control over a product to a customer when product is shipped based on fulfillment by the Company or when a point-of-sale transaction is completed. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales. The Company does not accept returns.
INCOME TAXES	INCOME TAXES   The Company accounts for income taxes and the related accounts under the liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the income tax bases of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes.   The Company recognizes any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.   There are no unrecognized tax benefits included in the balance sheet that would, if recognized, affect the effective tax rate.   The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had $0 accrued for interest and penalties on each of the Company’s balance sheets at September 30, 2023 and December 31, 2022.
INCOME (LOSS) PER COMMON SHARE	INCOME (LOSS) PER COMMON SHARE   Basic income (loss) per share represents income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from the assumed issuance. The Company had no potential common shares as of September 30, 2023 and September 30, 2022.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS   The Company measures the fair value of certain of its financial assets on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:   Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;   Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities, unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and   Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, such as derivative liabilities in relation to the conversion feature of notes payable.   At September 30, 2023 and December 31, 2022, the Company’s financial instruments include cash, precious metals inventory, coins inventory, SBA loan, and accounts payable and accrued expenses. The carrying amount of cash, precious metals inventory, coins inventory, SBA loan, and accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. Inventory – precious metals is at fair value measured under the Level 1 category.
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION   We consolidate entities that we control due to ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.

v3.23.3

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT	SCHEDULE OF PROPERTY AND EQUIPMENT     September 30, 2023     December 31, 2022   Furniture and equipment   $ 58,460     $ 58,460   Less – accumulated depreciation     (58,202 )     (58,036 ) Total property and equipment   $ 258     $ 424

v3.23.3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES	SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES     September 30, 2023     December 31, 2022   Accrued court decision   $ 338,171     $ 260,308   Accrued consultant fees     133,691       131,500   Accrued audit fees     14,520       8,089   Accrued dividends – preferred stock     36,326       36,326   Expenses owed related party     -       4,631   Accrued interest payable     18,765       14,436   Accrued interest payable related party     12,431       16,176   Other accrued expenses     12,467       8,671   Total   $ 566,371     $ 480,137

v3.23.3

RELATED PARTY ACTIVITY (Tables)	9 Months Ended
	Sep. 30, 2023
Related Party Transactions [Abstract]
SUMMARY OF ACTIVITY FOR LOANS PAYABLE - RELATED PARTIES	The following table is a summary of the activity for Loans payable- related parties principal for the nine months ended September 30, 2023 and September 30, 2022:  SUMMARY OF ACTIVITY FOR LOANS PAYABLE - RELATED PARTIES Balance at 12/31/2021   $ 153,100   Loan advances     207,687         -   Balance at 09/30/2022   $ 360,787             Balance at 12/31/2022   $ 6,000   Loan advances     103,685   Loan principal converted to common stock     (97,480 ) Balance at 09/30/2023   $ 12,205

v3.23.3

SBA LOAN (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
SCHEDULE OF FUTURE PAYMENTS OF DEBT	SCHEDULE OF FUTURE PAYMENTS OF DEBT     Remaining Loan Payments   2023   $ 14,155   2024     8,940   2025     8,940   2026     8,940   2027     8,940   thereafter     200,405   Total remaining loan payments     250,320   Less: imputed interest     (100,320 ) Total loan liability     150,000   Less: current portion     (7,526 ) Long term loan liability   $ 142,474             Weighted average remaining lease term     26.7 years

v3.23.3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Inventory [Line Items]
Unrealized loss in precious metals	$ 21,556	$ 62,779	$ 47,532	$ 113,775
Impairment charges			0	$ 0
Accrued interest penalties	$ 0		$ 0		$ 0
Minimum [Member]
Inventory [Line Items]
Property plant and equipment useful life	3 years		3 years
Maximum [Member]
Inventory [Line Items]
Property plant and equipment useful life	5 years		5 years
Coins [Member]
Inventory [Line Items]
Inventory	$ 1,041,875		$ 1,041,875		950,637
Precious Metals and Coins [Member]
Inventory [Line Items]
Inventory	$ 753,490		$ 753,490		$ 801,022

v3.23.3

GOING CONCERN (Details Narrative) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 66,179,869	$ 65,915,978

v3.23.3

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Furniture and equipment	$ 58,460	$ 58,460
Less – accumulated depreciation	(58,202)	(58,036)
Total property and equipment	$ 258	$ 424

v3.23.3

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 55	$ 211	$ 166	$ 805

v3.23.3

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued court decision	$ 338,171	$ 260,308
Accrued consultant fees	133,691	131,500
Accrued audit fees	14,520	8,089
Accrued dividends – preferred stock	36,326	36,326
Expenses owed related party		4,631
Accrued interest payable	18,765	14,436
Accrued interest payable related party	12,431	16,176
Other accrued expenses	12,467	8,671
Total	$ 566,371	$ 480,137

v3.23.3

SUMMARY OF ACTIVITY FOR LOANS PAYABLE - RELATED PARTIES (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction [Line Items]
Ending Balance	$ 150,000
Related Party [Member]
Related Party Transaction [Line Items]
Beginning Balance	6,000	$ 153,100
Loan advances	103,685	207,687
Loan principal converted to common stock	(97,480)
Ending Balance	$ 12,205	$ 360,787

v3.23.3

RELATED PARTY ACTIVITY (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Loan amount	$ 103,685	$ 207,687
Interest payable	18,765		$ 14,436
Accrued dividends	36,326		$ 36,326
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Loan amount	$ 103,685	$ 207,687
Interest rate	6.00%	6.00%
Interest payable	$ 12,431	$ 13,292
Common stock shares issued	206,000
Accrued dividends	$ 19,141
Chief Executive Officer [Member] | Common Stock [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Interest payable	$ 5,520
Common stock shares issued	206,000
Loan principal amount	$ 97,480

v3.23.3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)			3 Months Ended		9 Months Ended
	Aug. 17, 2023	Nov. 02, 2021	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Aug. 21, 2020
Product Liability Contingency [Line Items]
Operating expenses			$ 100,123	$ 20,954	$ 198,885	$ 125,863
Lawsuit judgement			$ 77,863		$ 77,863
Boustead Securities, LLC [Member]
Product Liability Contingency [Line Items]
Demages fee	$ 33,817,087
Preferred Stock Warrants [Member] | Boustead Securities, LLC [Member]
Product Liability Contingency [Line Items]
Warrant owed							87,179
Common Stock Warrants [Member] | Boustead Securities, LLC [Member]
Product Liability Contingency [Line Items]
Warrant owed							9,231
Fair value adjustment of warrants		$ 260,308
Operating expenses		260,308
Cash		$ 260,308
Retail Store [Member]
Product Liability Contingency [Line Items]
Lessee, operating lease, description					The lease is for five years and runs through September 2023. The lease calls for payments of $1,305.60 per month for the first year, with a 3% increase per year for years two through five
Lessee, operating lease, term of contract			5 years		5 years
Operating lease, payments					$ 1,305.60
Percentage of lease			3.00%		3.00%

v3.23.3

SCHEDULE OF FUTURE PAYMENTS OF DEBT (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
2023	$ 14,155
2024	8,940
2025	8,940
2026	8,940
2027	8,940
thereafter	200,405
Total remaining loan payments	250,320
Less: imputed interest	(100,320)
Total loan liability	150,000
Less: current portion	(7,526)
Long term loan liability	$ 142,474	$ 144,953
Weighted average remaining lease term	26 years 8 months 12 days

v3.23.3

SBA LOAN (Details Narrative) - SBA loan [Member]	1 Months Ended
	Jun. 30, 2020 USD ($)
Short-Term Debt [Line Items]
Proceeds from loans	$ 150,000
Loan expense	$ 100
Interest rate	3.75%
Loan monthly payment	$ 731

v3.23.3

PPP LOAN (Details Narrative) - Paycheck Protection Program Loan [Member] - USD ($)	1 Months Ended
	May 31, 2021	Feb. 28, 2021
Short-Term Debt [Line Items]
Proceeds from loans	$ 15,125	$ 15,125
Loan term	5 years
Interest rate	1.00%

v3.23.3

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Common stock shares authorized	100,000,000	100,000,000
Preferred stock shares authorized	20,000,000	20,000,000
Accrued interest related party	$ 18,765	$ 14,436
Common stock issued	5,021,857	4,815,857	0
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Common stock shares issued	206,000
Accrued interest related party	$ 12,431		$ 13,292
Chief Executive Officer [Member] | Related Party [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Conversion of related party notes payable	97,480
Accrued interest related party	$ 5,520

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