Annual report pursuant to Section 13 and 15(d)

INVESTMENTS

v3.22.1
INVESTMENTS
12 Months Ended
Dec. 31, 2021
Investments, All Other Investments [Abstract]  
INVESTMENTS

NOTE 4 – INVESTMENTS

  

Bougainville Ventures, Inc. Joint Venture

 

On March 16, 2017, we entered into a joint venture agreement with Bougainville Ventures, Inc., a Canadian corporation. The purpose of the joint venture was for the Company and Bougainville to (i) jointly engage in the development and promotion of products in the legalized cannabis industry in Washington State; (ii) utilize Bougainville’s high quality cannabis grow operations in the State of Washington, where it claimed to have an ownership interest in real property for use within the legalized cannabis industry; (iii) leverage Bougainville’s agreement with a I502 Tier 3 license holder to grow cannabis on the site; provide technical and management services and resources including, but not limited to: sales and marketing, agricultural procedures, operations, security and monitoring, processing and delivery, branding, capital resources and financial management; and, (iv) optimize collaborative business opportunities. The Company and Bougainville agreed to operate through a Washington State Limited Liability Company, and BV-MCOA Management, LLC was organized in the State of Washington on May 16, 2017. 

 

As our contribution to the joint venture, the Company committed to raise not less than $1,000,000 to fund joint venture operations, based upon a funding schedule. The Company also committed to providing branding and systems for the representation of cannabis related products and derivatives comprised of management, marketing and various proprietary methodologies directly tailored to the cannabis industry.

 

The Company and Bougainville’s agreement provided that funding provided by the Company would contribute towards the joint venture’s ultimate purchase of the land consisting of a one-acre parcel located in Okanogan County, Washington, for joint venture operations.

As disclosed on Form 8-K on December 11, 2017, the Company did not comply with the funding schedule for the joint venture. On November 6, 2017, the Company and Bougainville amended the joint venture agreement to reduce the amount of the Company’s commitment from $1,000,000 to $800,000, and also required the Company to issue Bougainville 15 million shares of the Company’s restricted common stock. The Company completed its payments pursuant to the amended agreement on November 7, 2017, and on November 9, 2017, issued to Bougainville 15 million shares of restricted common stock. The amended agreement provided that Bougainville would deed the real property to the joint venture within thirty days of its receipt of payment.

Thereafter, the Company determined that Bougainville had no ownership interest in the property in Washington State, but rather was a party to a purchase agreement for real property that was in breach of contract for non-payment. Bougainville also did not possess an agreement with a Tier 3 I502 license holder to grow Marijuana on the property. Nonetheless, as a result of funding arranged for by the Company, Bougainville and an unrelated third party, Green Ventures Capital Corp., purchased the land, but did not deed the real property to the joint venture. Bougainville failed to pay delinquent property taxes to Okanogan County and to date, the property has not been deeded to the joint venture.

To clarify the respective contributions and roles of the parties, the Company offered to enter into good faith negotiations to revise and restate the joint venture agreement with Bougainville. The Company diligently attempted to communicate with Bougainville to accomplish a revised and restated joint venture agreement, and efforts towards satisfying the conditions to complete the subdivision of the land by the Okanogan County Assessor. However, Bougainville failed to cooperate or communicate with the Company in good faith, and failed to pay the delinquent taxes on the real property that would allow for sub-division and the deeding of the real property to the joint venture.

On August 10, 2018, the Company advised its independent auditor that Bougainville did not cooperate or communicate with the Company regarding its requests for information concerning the audit of Bougainville’s receipt and expenditures of $800,000 contributed by the Company in the joint venture agreement. Bougainville had a material obligation to do so under the joint venture agreement. The Company believes that some of the funds it paid to Bougainville were misappropriated and that there was self-dealing with respect to those funds. Additionally, the Company believes that Bougainville misrepresented material facts in the joint venture agreement, as amended, including, but not limited to, Bougainville’s representations that: (i) it had an ownership interest in real property that was to be deeded to the joint venture; (ii) it had an agreement with a Tier 3 # I502 cannabis license holder to grow cannabis on the real property; and, (iii) that clear title to the real property associated with the Tier 3 # I502 license would be deeded to the joint venture thirty days after the Company made its final funding contribution. As a result, on September 20, 2018, the Company filed suit against Bougainville Ventures, Inc., BV-MCOA Management, LLC, Andy Jagpal, Richard Cindric, et al. in Okanogan County Washington Superior Court, case number 18-2- 0045324. The Company’s complaint seeks legal and equitable relief for breach of contract, fraud, breach of fiduciary duty, conversion, recession of the joint venture agreement, an accounting, quiet title to real property in the name of the Company, for the appointment of a receiver, the return to treasury of 15 million shares issued to Bougainville, and, for treble damages pursuant to the Consumer Protection Act in Washington State. The registrant has filed a lis pendens on the real property. The case is currently in litigation. 

In connection with the agreement, the Company recorded a cash investment of $1,188,500 to the Joint Venture during 2017. This was comprised of 49.5% ownership of BV-MCOA Management LLC, and was accounted for using the equity method of accounting. The Company recorded an annual impairment in 2017 of $792,500, reflecting the Company’s percentage of ownership of the net book value of the investment. During 2018, the Company recorded equity losses of $37,673 and $11,043 for the first and second quarters respectively, and recorded an annual impairment of $285,986 for the year ended December 31, 2018, at which time the Company determined the investment to be fully impaired due to Bougainville’s breach of contract and resulting litigation, as discussed above. 

Natural Plant Extract of California

Natural Plant Extract of California & Subsidiaries Joint Venture; On April 15, 2019, the Company entered into a joint venture agreement with Natural Plant Extracts of California, Inc. and subsidiaries. The purpose of the joint venture was to utilize Natural Plant Extracts’ California and City cannabis licenses to jointly operate a business named “Viva Buds” to operate a licensed cannabis distribution service in California. In exchange for acquiring 20% of Natural Plant Extracts’ common stock, the Company agree to pay two million dollars and issue Natural Plant Extract one million dollars’ worth of the Company’s restricted common stock. As of February 3, 2020, the Company was in arrears in its payment obligations under the joint venture agreement, and the parties entered into a settlement and release of all claims terminating the joint venture. The parties agreed to reduce the Company’s equity ownership in Natural Plant Extracts from 20% to 5%. The Company also agreed to pay Natural Plant Extracts $85,000 and the balance of $56,085.15 paid in a convertible promissory note issued with terms allowing Natural Plant Extracts to convert the note into common stock at a 50% discount to the closing price of MCOA’s common stock as of the maturity date. As of the date of this filing, the Company satisfied its payment obligations under the settlement agreement.

Cannabis Global Share Exchange

Share Exchange with Cannabis Global, Inc. On September 30, 2020, the Company entered into a securities exchange agreement with Cannabis Global, Inc., a Nevada corporation. By virtue of the agreement, the Company issued 650,000,000 shares of its unregistered common stock to Cannabis Global in exchange for 7,222,222 shares of Cannabis Global unregistered common stock. The Company and Cannabis Global also entered into a lock up leak out agreement which prevents either party from sales of the exchanged shares for a period of 12 months. Thereafter the parties may sell not more than the quantity of shares equaling an aggregate maximum sale value of $20,000 per week, or $80,000 per month until all Shares and Exchange Shares are sold.

Eco Innovation Group Share Exchange

 

On February 26, 2021, we entered into a Share Exchange Agreement with Eco Innovation Group, Inc., a Nevada corporation quoted on OTC Markets Pink (“ECOX”) to acquire the number of shares of ECOX’s common stock, equal in value to $650,000 based on the per-share price of $0.06, in exchange for the number of shares of MCOA common stock equal in value to $650,000 based on the closing price for the trading day immediately preceding the effective date (the “Share Exchange Agreement”).  For both parties, the Share Exchange Agreement contains a “true-up” provision requiring the issuance of additional common stock in the event that a decline in the market value of either parties’ common stock should cause the aggregate value of the stock acquired pursuant to the Share Exchange Agreement to fall below $650,000.

 

Complementary to the Share Exchange Agreement, the Company and ECOX entered into a Lock-Up Agreement dated February 26, 2021 (the “Lock-Up Agreement”), providing that the shares of common stock acquired pursuant to the Share Exchange Agreement shall be subject to a lock-up period preventing its sale for a period of 12 months following issuance and limiting the subsequent sale to aggregate maximum sale value of $20,000 per week, or $80,000 per month. On October 1, 2021, we entered into a First Amendment to Lock-Up Agreement between the Company and Eco Innovation Group, Inc., dated and effective October 1, 2021 (the “Amended Lock-Up Agreement”), which amends that certain Lock-Up Agreement entered into between the Company and Eco Innovation Group, Inc. on February 26, 2021 (the “Original Lock-Up Agreement”). The Amended Lock-Up Agreement amends the Original Lock-Up Agreement in one respect, by amending the initial lock-up period from 12 months following its effective date to 6 months following its effective date. All other terms and conditions of the Original Lock-Up Agreement remain unaffected.

 

Joint Ventures in Brazil and Uruguay – Development Stage

 

On October 1, 2020, we entered into two Joint Venture Agreements with Marco Guerrero, a director of the Company, dated September 30, 2020, to form joint venture operations in Brazil and in Uruguay to produce, manufacture, market and sell the Company’s hempSMART™ products in Latin America, and will also work to develop and sell hempSMART™ products globally. The Joint Venture Agreements contain equal terms for the formation of joint venture entities in Uruguay and Brazil. The Brazilian joint venture will be headquartered in São Paulo, Brazil, and will be named HempSmart Produtos Naturais Ltda. (“HempSmart Brazil”). The Uruguayan joint venture will be headquartered in Montevideo, Uruguay and will be named Hempsmart Uruguay S.A.S. (“HempSmart Uruguay”). Both are in the development stage. Under the Joint Venture Agreements, the Company will acquire a 70% equity interest in both HempSmart Brazil and HempSmart Uruguay. A minority 30% equity interest in both HempSmart Brazil and HempSmart Uruguay will be held by newly formed entities controlled by Mr. Guerrero, our director and a successful Brazilian entrepreneur. The Company will provide capital in the amount of $50,000 to both HempSmart Brazil and HempSmart Uruguay under the Joint Venture Agreements, for a total capital obligation of $100,000. As of December 31, 2020, this amount has not been disbursed. It is expected that the proceeds of the initial capital contribution will be used for contracting with third-party manufacturing facilities in Brazil and Uruguay, and related infrastructure and employment of key personnel. The boards of directors of HempSmart Brazil and HempSmart Uruguay will consist of three directors, elected by the joint venture partners. As part of the Joint Venture Agreements, the Company will license, on a royalty-free basis, certain of its intellectual property regarding the Company’s existing products to HempSmart Brazil and HempSmart Uruguay to enable the joint ventures to manufacture and sell the Company’s products in Brazil, Uruguay, and for export to other Latin American countries, the United States, and globally in accordance with the terms of the Joint Venture Agreements. The Joint Venture Agreements provide the partners with a right of first offer. Under this right, each partner may trigger an “interest sale” right of first offer process at any time pursuant to which the other partners may either acquire the triggering partner’s interest in the joint ventures, or permit the triggering partner to sell its interest to a third party. In addition, the Company, as majority partner, may trigger a compulsory buy-sell procedure in the event a joint venture is frustrated in its intent or purpose, pursuant to which the Company could pursue a sale of all or substantially all of the joint venture. Subject to certain exceptions, the joint venture partners may not transfer their interests in HempSmart Brazil and HempSmart Uruguay. The Joint Venture Agreements contain customary terms, conditions, representations, warranties and covenants of the parties for like transactions.

 

Acquisition of cDistro, Inc.

 

On June 29, 2021, we acquired 100% of the capital stock of cDistro, Inc., a Florida-based hemp and CBD product distribution business incorporated in the State of Nevada (“cDistro”) by a statutory merger and share exchange. After the acquisition, cDistro’s founding partner and Chief Executive Officer, Ronald Russo, remains its Chief Executive Officer, and our Chief Financial Officer Jesus Quintero serves as cDistro’s Chief Financial Officer.

 

Asset Purchase Agreement with VBF Brands, Inc.

 

On October 6, 2021, the Company, through its wholly owned subsidiary Salinas Diversified Ventures, Inc., a California corporation, entered into an Asset Purchase Agreement, Management Services Agreement, Cooperation Agreement and Employment Agreement with VBF Brands, Inc., a California corporation (“VBF”), a wholly owned subsidiary of Sunset Island Group, Inc., a Colorado corporation (“SIGO”). VBF and SIGO agreed to transfer to the Company all of VBF’s outstanding stock to the Company, and appointed our CEO and CFO Jesus Quintero as President of VBF.

 

VBF owns various fixed assets including machinery and equipment, a lease for a 10,000 square foot facility located at 20420 Spence Road, Salinas, California, 93908, leasehold improvements, good-will, inventory, tradenames including “VBF Brands,” trade secrets, intellectual property, and other tangible and intangible properties, including licenses issued by the City of Salinas, County of Monterey, and the State of California to operate a licensed cannabis nursery, cultivation facility, and operations for the manufacturing and distribution of cannabis and cannabis products.

 

VBF and SIGO agreed to sell and transfer to the Company all of VBF’s outstanding stock, and, by virtue of the Management Services Agreement, appoint Mr. Jesus Quintero as President of VBF, vesting management and control of VBF’s licensed cannabis operations in the Company. Concurrently, VBF and Livacich entered into a Cooperation Agreement, whereby VBF and Livacich agreed to cooperate to facilitate the transfer of ownership of VBF, which includes licenses issued by the City of Salinas, County of Monterey, and the State of California, to operate a cannabis nursery, cultivation facility and manufacturing and distribution operations to the Company. The Company also agreed to retain Livacich as Chief Executive Officer for a term of two years and agreed to compensate her with a salary including a signing cash bonus of $250,000, and a $250,000 performance cash bonus payable after six months after the Effective Date. The bonus is conditioned upon Livacich meeting an agreed to “Net Revenue” target of one million dollars ($1,000,000) from VBF’s operations during the six-month period after closing of the Asset Purchase Agreement, and her compliance with the terms and conditions of this Asset Purchase Agreement, the Management Services Agreement and the Cooperation Agreement.

 

As consideration for the transaction, the Company agreed to assume two secured convertible promissory notes issued by SIGO to St. George Investments, LLC, a Utah limited liability company (“St. George”) (the “SIGO Notes”). The first note was issued December 8, 2017, in the original face amount of $170,000.00, and the second was issued February 13, 2018, in the original face amount of $4,245,000.00. SIGO also issued warrants to St. George to purchase common shares in SIGO, and fifty (50) shares of SIGO’s preferred stock. St. George agreed to cancel the warrants and preferred shares upon the Company’s assumption of the SIGO Notes.

 

Under the Asset Purchase Agreement, the closing is conditioned upon certain conditions precedent, specifically (i) VBF and SIGO’s full corporate authorization, consent and execution of this Agreement; (ii) VBF’s sale to MCOA of 100% of the issued and outstanding shares of VBF; (iii) full corporate authorization, consent compliance with and execution of the Management Services Agreement and Cooperation Agreement; (iv) SIGO’s disclosure of the Agreement on Form 8-K with the Securities and Exchange Commission; (v) full cooperation in MCOA’s financial auditing of VBF in accordance with ASC 805, including providing unrestricted access to all VBF corporate and financial records and providing all necessary cooperation with VBF financial personnel; (vi) full cooperation in aiding and assisting Buyer with its change of ownership applications with the relevant licensing authorities; (vii) the warranty of truthful representations and execution of and compliance with the terms and conditions of the Executive Employment Agreement, Management Services Agreement and the Cooperation Agreement.

 

As of the date of this filing, the conditions precedent to the closing of the Asset Purchase Agreement remain in the process of implementation, so that the Asset Purchase Agreement closing has not yet occurred pursuant to its terms. Legal counsel for MCOA is currently in the process of working with VBF, Salinas Diversified Ventures, and the relevant state and local governments to effect the change of control and license transfers necessary to close the Asset Purchase Agreement.

 

MARIJUANA COMPANY OF AMERICA, INC.

INVESTMENT ROLL-FORWARD

AS OF DECEMBER 31, 2021

 

                                                                 
    INVESTMENTS
                                                               
    TOTAL     Consolidated     Cannabis Global                 Hempsmart     Lynwood     Natural Plant     Salinas Ventures     VBF        
    INVESTMENTS     Eliminations     Inc.     ECOX     cDistro     Brazil     JV     Extract     Holding     BRANDS     Vivabuds  
                                                                   
Investments made during quarter ended 03-31-19     0                                                                                  
                                                                                         
Quarter 03-31-19 equity method Loss     0       -        -        -        -        -        -        -        -        -        -   
                                                                                         
Unrealized gains on trading securities - quarter ended 03-31-19                                                                                        
Balance @03-31-19   $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
                                                                                         
Investments made during quarter ended 06-30-19   $ 3,073,588       -        -        -        -        -        -      $ 3,000,000       -        -      $ 73,588  
                                                                                         
Quarter 06-30-19 equity method Income (Loss)   $ (29,414 )                                                   $ (6,291 )                   $ (23,123 )
                                                                                         
Unrealized gains on trading securities - quarter ended 06-30-19   $ 0                                                                                  
Balance @06-30-19   $ 3,044,174     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 2,993,709     $ 0     $ 0     $ 50,465  
                                                                                         
Investments made during quarter ended 09-30-19   $ 186,263       -        -        -        -        -        -        -        -        -      $ 186,263  
                                                                                         
Quarter 09-30-19 equity method Income (Loss)   $ (139,926 )                                                   $ (94,987 )                   $ (44,939 )
                                                                                         
Sale of trading securities during quarter ended 09-30-19                                                                                        
                                                                                         
Unrealized gains on trading securities - quarter ended 09-30-19   $ 0                                                                                  
Balance @09-30-19   $ 3,090,511     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 2,898,722     $ 0     $ 0     $ 191,789  
                                                                                         
Investments made during quarter ended 12-31-19   $ 129,812       -        -        -        -        -        -        -        -        -      $ 129,812  
                                                                                         
Quarter 12-31-19 equity method Income (Loss)   $ (102,944 )                                                   $ (23,865 )                   $ (79,079 )
                                                                                         
Reversal of Equity method Loss for 2019   $ 272,285                                                     $ 125,143                     $ 147,142  
                                                                                         
Impairment of investment in 2019   $ (2,306,085 )                                                   $ (2,306,085 )                   $ 0  
                                                                                         
Loss on disposition of investment   $ (389,664 )                                                                           $ (389,664 )
                                                                                         
Sale of trading securities during quarter ended 12-31-19   $ 0                                                                                  
                                                                                         
Unrealized gains on trading securities - quarter ended 12-31-19   $ 0                                                                                  
Balance @12-31-19   $ 693,915     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Equity Loss for Quarter ended 03-31-20     0       -        -        -        -        -        -        -        -        -        -   
                                                                                         
Recognize Joint venture liabilities per JV agreement @03-31-20     0                                                                                  
                                                                                         
Impairment of Equity Loss for Quarter ended 03-31-20     0                                                                                  
                                                                                         
Unrealized gains on trading securities - quarter ended 03-31-19                                                                                        
Balance @03-31-20   $ 693,915     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Equity Loss for Quarter ended 06-30-20     0       -        -        -        -        -        -        -        -        -        -   
                                                                                         
Impairment of Equity Loss for Quarter ended 06-30-20     0                                                                                  
                                                                                         
Sales of of trading securities - quarter ended 06-30-20                                                                                        
Balance @06-30-20   $ 693,915     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Global Hemp Group trading securities issued     650,000             $ 650,000                                                                  
                                                                                         
Investment in Cannabis Global     0       -        -        -        -        -        -        -        -        -        -   
                                                                                         
Balance @09-30-20   $ 1,343,915     $ 0     $ 650,000     $ 0     $ 0     $ 0     $ 0     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Unrealized gain on Global Hemp Group securities - 4th Quarter 2020     -        -        -        -        -        -        -        -        -        -        -   
                                                                                         
Unrealized gains on Cannabis Global Inc securities - 4th Quarter 2020     208,086             $ 208,086                                                                  
Balance @12-31-20   $ 1,552,001     $ 0     $ 858,086     $ 0     $ 0     $ 0     $ 0     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Investment in ECOX     650,000       -        -      $ 650,000       -        -        -        -        -        -        -   
                                                                                         
Balance @03-31-21   $ 2,202,001     $ 0     $ 858,086     $ 650,000     $ 0     $ 0     $ 0     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Investments made during quarter ended 06-30-21     30,898                                             $ 30,898                                  
                                                                                         
Unrealized gain on Global Hemp Group securities - 2nd quarter 2021     -        -        -        -        -        -        -        -        -        -        -   
                                                                                         
Balance @06-30-21   $ 2,232,899     $ 0     $ 858,086     $ 650,000     $ 0     $ 0     $ 30,898     $ 693,915     $ 0     $ 0     $ 0  
                                                                                         
Investments made during quarter ended 09-30-21     68,200             $ 68,000                                             $ 200                  
                                                                                         
Sale of short-term investments in quarter ended- 09-30-21     0       -        -        -        -        -        -        -        -        -        -   
                                                                                         
Balance @09-30-21   $ 2,301,099     $ 0     $ 926,086     $ 650,000     $ 0     $ 0     $ 30,898     $ 693,915     $ 200     $ 0     $ 0  
                                                                                         
Investments made during quarter ended 12-31-21     5,087,079                             $ 2,975,174     $ 90,923                             $ 2,020,982          
Consolidated Eliminations @12/31/21     (5,060,821 )     (5,060,821 )     -        -        -        -        -        -        -        -        -   
                                                                                         
Balance @12-31-21   $ 2,327,357     $ (5,060,821 )   $ 926,086     $ 650,000     $ 2,975,174     $ 90,923     $ 30,898     $ 693,915     $ 200     $ 2,020,982     $ 0  

 

 

 

 

                         
Loan Payable
 
        Natural               General
    TOTAL   Plant   Robert L   VBF       Operating
    Debt   Extract   Hymers III   BRANDS   Vivabuds   Expense
                         
Quarter 03-31-19 loan borrowings                                                
Quarter 03-31-19 debt conversion to equity     -        -        -        -        -        -   
                                                 
Balance @03-31-19  ©     0       0       0       0       0       0  
                                                 
Quarter 03-31-19 loan borrowings     3,675,000     $ 2,000,000       -        -      $ 0     $ 1,675,000  
Quarter 03-31-19 debt conversion to equity     (1,411,751 )   $ (349,650 )                           $ (1,062,101 )
                                                 
Balance @06-30-19   (d)     2,263,249       1,650,350       0       0       0       612,899  
                                                 
Quarter 09-30-19 loan borrowings     582,000                                     $ 582,000  
Quarter 09-30-19 debt conversion to equity     (187,615 )     -        -        -        -      $ (187,615 )
                                                 
Balance @09-30-19   (e)     2,657,634       1,650,350       0       0       0       1,007,284  
                                                 
Quarter 12-31-19 loan borrowings     2,726,964     $ 596,784     $ 4,221                     $ 2,125,959  
Impairment of investment in 2019     (2,156,142 )   $ (2,156,142 )                                
Loss on settlement of debt in 2019     50,093     $ 50,093               -        -           
Adjustment to reclassify amount to accrued liabilities     (85,000 )   $ (85,000 )                                
                                                 
                                                 
Balance @12-31-19   (f)   $ 3,193,549     $ 56,085     $ 4,221     $ 0     $ 0     $ 3,133,243  
Quarter 03-31-20 loan borrowings   $ 441,638                                     $ 441,638  
Quarter 03-31-20 debt conversion to equity   $ (619,000 )     -        -        -        -      $ (619,000 )
Recognize Joint venture liabilities per JV agreement @03-31-20   $ 0                                          
Quarter 03-31-20 Debt Discount adjustments   $ 24,138             $ 24,138                          
                                                 
Balance @03-31-20  (g)   $ 3,040,325     $ 56,085     $ 28,359     $ 0     $ 0     $ 2,955,881  
                                                 
Quarter 06-30-20 loan borrowings, net   $ 65,091             $ 65,091                          
Quarter 06-30-20 debt conversion to equity   $ (727,118 )     -        -        -        -      $ (727,118 )
Quarter 06-30-20 reclass of liability   $ 0                                          
                                                 
Quarter 06-30-20 Debt Discount adjustments   $ 405,746             ($ 27,715 )                   $ 433,461  
                                                 
Balance @06-30-20  (h)   $ 2,784,044     $ 56,085     $ 65,735     $ 0     $ 0     $ 2,662,224  
                                                 
Quarter 09-30-20 debt conversion to equity   $ (606,472 )   $ (56,085 )   ($ 65,735 )     -        -      $ (484,652 )
Debt Settlement during Q3 2020   $ 0                                          
                                                 
Balance @09-30-20  (i)   $ 2,177,572     ($ 0 )   $ 0     $ 0     $ 0     $ 2,177,572  
                                                 
Quarter 12-31-20 loan borrowings, net   $ 309,675                                     $ 309,675  
Quarter 12-31-20 Debt Discount adjustments   $ (71,271 )     -        -        -        -      $ (71,271 )
Quarter 12-31-20 debt conversion to equity   $ (993,081 )                                   $ (993,081 )
Balance @12-31-20  (j)   $ 1,422,895     $ 0     $ 0     $ 0     $ 0     $ 1,422,895  
                                                 
Quarter 03-31-21 debt conversion to equity   $ (1,309,016 )     -        -        -        -      $ (1,309,016 )
Quarter 03-31-21 loan borrowings, net   $ 145,000                                     $ 145,000  
Balance @03-31-21  (k)   $ 258,879     $ 0     $ 0     $ 0     $ 0     $ 258,879  
                                                 
Quarter 06-30-21 loan borrowings, net   $ 1,251,779       -      $ 185,000       -        -      $ 1,066,779  
Balance @06-30-21  (l)   $ 1,510,658     $ 0     $ 185,000     $ 0     $ 0     $ 1,325,658  
                                                 
Quarter 09-30-21 loan borrowings, net   $ 626,250                                     $ 626,250  
Quarter 09-30-21 loan repayments, net   $ (1,077,464 )     -      $ (75,000 )     -        -      $ (1,002,464 )
                                                 
Balance @09-30-21  (m)   $ 1,059,444     ($ 0 )   $ 110,000     $ 0     $ 0     $ 949,444  
                                                 
Quarter 12-31-21 loan borrowings, net   $ 2,710,006       -        -      $ 1,643,387       -      $ 1,066,619  
                                                 
Balance @12-31-21  (n)   $ 3,769,449     ($ 0 )   $ 110,000     $ 1,643,387     $ 0     $ 2,016,063  

 

                                                                       
    12-31-21   06-30-20   03-31-20   12-31-19   09-30-19   06-30-19   03-31-19   12-31-18   12-31-17
This includes balances for:     Note (n)       Note (h)       Note (g)       Note (f)       Note (e)       Note (d)       Note (c)       Note (b)       Note (a)  
   - Debt obligation of JV     0       478,494       394,848       0       1,633,872       1,778,872       128,522       289,742       1,500,000  
   - Convertible NP, net of discount     3,769,449       2,784,044       3,040,324       3,193,548       2,688,555       2,149,170       1,536,271       1,132,668       394,555  
   - Longterm debt     0       0       0       0       0       0       0       0       172,856  
Total Debt balance   $ 3,769,449     $ 3,262,538     $ 3,435,172     $ 3,193,548     $ 4,322,427     $ 3,928,042     $ 1,664,793     $ 1,422,410     $ 2,067,411