2023 Q2 Form 10-K Financial Statement

#000173112223000637 Filed on April 12, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2022 Q4 2022
Revenue $131.4K $336.1K $1.198M
YoY Change -61.91% 646.91% 565.31%
Cost Of Revenue $148.8K $287.8K $817.8K
YoY Change -17.07%
Gross Profit -$17.41K $48.36K $379.8K
YoY Change -110.52% 111.0%
Gross Profit Margin -13.25% 14.39% 31.71%
Selling, General & Admin $190.6K $661.9K $1.414M
YoY Change -79.42% -18.15% -56.58%
% of Gross Profit 1368.65% 372.2%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $334.5K $611.9K $3.178M
YoY Change -63.89% -24.33% -2.38%
Operating Profit -$351.9K -$563.5K -$2.798M
YoY Change -53.75% -84.85%
Interest Expense $359.3K $3.460M $969.6K
YoY Change -113.13% -286.01% -123.22%
% of Operating Profit
Other Income/Expense, Net -$9.564M $172.1K $8.122M
YoY Change -16928.88% -88.88% 225.21%
Pretax Income -$9.916M $3.068M $5.324M
YoY Change 188.15% -385.09% -115.69%
Income Tax
% Of Pretax Income
Net Earnings -$9.909M $3.068M $5.324M
YoY Change 187.96% -385.09% -115.69%
Net Earnings / Revenue -7540.02% 912.88% 444.56%
Basic Earnings Per Share $0.00 $0.01
Diluted Earnings Per Share $0.00 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 2.930B shares 1.207B shares 696.7M shares
Diluted Shares Outstanding 28.49B shares 4.647B shares

Balance Sheet

Concept 2023 Q2 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $56.57K $122.8K $122.8K
YoY Change -64.92% -54.17% -54.17%
Cash & Equivalents $44.07K $93.58K
Short-Term Investments $12.51K $16.20K $16.20K
Other Short-Term Assets $452.00 $125.4K $12.50K
YoY Change -99.9%
Inventory $12.86K $11.57K $11.57K
Prepaid Expenses
Receivables $35.54K $25.24K $25.24K
Other Receivables $197.2K $198.5K $198.5K
Total Short-Term Assets $354.6K $370.6K $370.6K
YoY Change -50.38% -90.78% -90.78%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $0.00 $0.00 $0.00
YoY Change
TOTAL ASSETS
Total Short-Term Assets $354.6K $370.6K $370.6K
Total Long-Term Assets $0.00 $0.00 $0.00
Total Assets $354.6K $370.6K $370.6K
YoY Change -50.38% -90.78% -90.78%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.029M $1.531M $1.531M
YoY Change -32.54% 37.89% 37.89%
Accrued Expenses $1.182M $1.513M $8.800M
YoY Change -84.72% -84.68% -10.9%
Deferred Revenue $36.44K $41.44K
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $6.935M $6.695M $6.695M
YoY Change -27.91% -39.01% -39.01%
Total Short-Term Liabilities $31.05M $18.89M $18.89M
YoY Change 23.79% -41.7% -41.7%
LONG-TERM LIABILITIES
Long-Term Debt $310.8K $308.9K $308.9K
YoY Change -11.72% -17.28% -17.28%
Other Long-Term Liabilities $0.00
YoY Change
Total Long-Term Liabilities $310.7K $308.9K $308.9K
YoY Change -11.72% -17.28% -17.28%
TOTAL LIABILITIES
Total Short-Term Liabilities $31.05M $18.89M $18.89M
Total Long-Term Liabilities $310.7K $308.9K $308.9K
Total Liabilities $31.36M $19.20M $19.20M
YoY Change 23.3% -41.42% -41.42%
SHAREHOLDERS EQUITY
Retained Earnings -$314.8M -$299.3M
YoY Change -1.75%
Common Stock $55.51K $15.36K
YoY Change 4525.3%
Preferred Stock
YoY Change
Treasury Stock (at cost) $643.1K $643.1K
YoY Change 0.0%
Treasury Stock Shares
Shareholders Equity -$31.05M -$18.83M -$18.83M
YoY Change
Total Liabilities & Shareholders Equity $354.6K $370.6K $370.6K
YoY Change -50.38% -90.78% -90.78%

Cashflow Statement

Concept 2023 Q2 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$9.909M $3.068M $5.324M
YoY Change 187.96% -385.09% -115.69%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$104.6K -$471.7K -$138.3K
YoY Change 1074.83% 14.74% -89.9%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 -$275.0K
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00 -$275.0K
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 89.57K 53.01K $364.8K
YoY Change -29.24% -70.48% -74.15%
NET CHANGE
Cash From Operating Activities -104.6K -471.7K -$138.3K
Cash From Investing Activities 0.000 0.000 -$275.0K
Cash From Financing Activities 89.57K 53.01K $364.8K
Net Change In Cash -14.99K -418.7K -$48.47K
YoY Change -53.62% 80.82%
FREE CASH FLOW
Cash From Operating Activities -$104.6K -$471.7K -$138.3K
Capital Expenditures
Free Cash Flow
YoY Change

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CY2021 us-gaap Net Income Loss
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CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021 GTCH Change In Fair Value Of Derivative Liability
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CY2022 GTCH Change In Fair Value Of Marketable Securitie
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CY2022 us-gaap Increase Decrease In Prepaid Expense
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CY2022 us-gaap Increase Decrease In Deferred Revenue
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CY2021 us-gaap Increase Decrease In Deferred Revenue
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CY2021 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2021 us-gaap Net Cash Provided By Used In Operating Activities
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CY2022 GTCH Investment To Gtx
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CY2022 GTCH Investment To Tghi
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021 us-gaap Interest Paid
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CY2021 us-gaap Income Taxes Paid
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CY2022 GTCH Debt Discount Related To Convertible Debt
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CY2021 GTCH Debt Discount Related To Convertible Debt
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CY2022 GTCH Reduction In Derivative Liability Due To Conversion
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CY2021 GTCH Reduction In Derivative Liability Due To Conversion
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CY2022 GTCH Shares Issued For Conversion Of Convertible Debt
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CY2021 GTCH Shares Issued For Conversion Of Convertible Debt
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CY2021 GTCH Transfer Of Marketable Equity Security To Repay Convertible Note
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CY2022 GTCH Share Issuance For Jv Metaverse
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CY2022 GTCH Share Issuance For Jv Tokenize
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CY2021 GTCH Transfer Of Accounts Payable To Convertible Note
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CY2021 GTCH Transfer Of Accrued Interest To Convertible Note
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CY2022 GTCH Cancellation Of Ttsg Shares
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CY2021Q4 us-gaap Stockholders Equity Reverse Stock Split
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CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
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CY2022Q4 us-gaap Common Stock Shares Authorized
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CY2022 us-gaap Stockholders Equity Reverse Stock Split
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CY2022 GTCH Working Capital Deficit
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CY2022 us-gaap Use Of Estimates
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<p id="xdx_849_eus-gaap--UseOfEstimates_zrX0g7hjlssh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_86A_zOLIekEZtuS7">Use of Estimates</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of CFS in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the CFS and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Significant estimates in the accompanying CFS include valuation of derivatives and valuation allowance on deferred tax assets.</p> <p id="xdx_002_zrO0MIkTCCfi" style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/>
CY2022Q4 us-gaap Cash Equivalents At Carrying Value
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CY2021Q4 us-gaap Cash Equivalents At Carrying Value
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CY2022 us-gaap Prior Period Reclassification Adjustment Description
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<p id="xdx_84F_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zE87gqsoYFae" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_867_zSoQAtXgqjvk">Reclassification</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2022 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2021Q3 GTCH Stockholders Equitys
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CY2022Q2 GTCH Stockholders Equitys
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CY2022 us-gaap Derivatives Reporting Of Derivative Activity
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<p id="xdx_84A_eus-gaap--DerivativesReportingOfDerivativeActivity_zabBPEYeQti8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_860_z76iOlCldVob">Derivative Financial Instruments</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its FV and is then re-valued at each reporting date, with changes in the FV reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a weighted-average Black-Scholes-Merton option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of December 31, 2022 and 2021, the Company’s only derivative financial instrument was an embedded conversion feature associated with convertible notes payable due to certain provisions that allow for a change in the conversion price based on a percentage of the Company’s stock price at the date of conversion.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2022Q4 GTCH Conversion Feature On Convertible Notes
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205.07
CY2022 GTCH Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercisable Weighted Average Remaining Contractual Terms
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CY2022Q4 us-gaap Deferred Revenue
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CY2021Q4 us-gaap Deferred Revenue
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CY2021Q4 us-gaap Contract With Customer Liability Current
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CY2022Q1 us-gaap Debt Instrument Annual Principal Payment
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CY2022Q4 us-gaap Inventory Net
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CY2022Q4 GTCH Due From Related Parties Currents
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CY2021Q4 GTCH Impairment Charge
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CY2022Q4 us-gaap Investments
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CY2021Q4 us-gaap Investments
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
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70770 shares
CY2021Q4 us-gaap Stock Issued During Period Value New Issues
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CY2022 us-gaap Conversion Of Stock Shares Issued1
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CY2021 us-gaap Conversion Of Stock Shares Issued1
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CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2022 GTCH Escrow Amount Received
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CY2022 GTCH Final Settlement Agreement Description
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SURG agreed to make total payments of $4,200,000 to the Company’s trust account on or prior to January 7, 2022. This $4.2 million amount consists of $450,000 paid to the Company in November and December 2021, $100,000 to be paid on or about January 4, 2022, and $3,650,000 to be paid on or prior to January 7, 2022 of which $375,000 will be held in escrow as described before. The final settlement SURG agreed to make total payments of $4,200,000 to the Company’s trust account on or prior to January 7, 2022. The $3,750,000 was recorded as other receivable as of December 31, 2021. The entire balance of $3,750,000 was paid in January 2022.
CY2022 us-gaap Proceeds From Repayments Of Related Party Debt
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CY2022Q1 GTCH Settlement Amount
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CY2022 us-gaap Proceeds From Short Term Debt
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CY2021Q4 GTCH Services Payable
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CY2020Q1 GTCH Impairment Charge
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CY2021Q4 us-gaap Accounts Payable Current
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CY2021Q4 us-gaap Accrued Liabilities Current
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CY2022Q4 us-gaap Interest Payable Current
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CY2018 GTCH Cash Received In Connection With Intellectual Property License And Royalty Agreement
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200000 usd
CY2022Q4 us-gaap Deferred Revenue
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CY2021Q4 us-gaap Deferred Revenue
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CY2022Q4 us-gaap Convertible Debt
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CY2021Q4 us-gaap Convertible Debt
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CY2022Q4 GTCH Debt Instruments Unamortized Discount Noncurrent
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CY2021Q4 GTCH Debt Instruments Unamortized Discount Noncurrent
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CY2022Q4 us-gaap Other Notes Payable Current
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CY2022Q4 GTCH Less Current Portion
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CY2021Q4 GTCH Less Current Portion
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CY2021Q4 us-gaap Convertible Long Term Notes Payable
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CY2022 us-gaap Debt Conversion Converted Instrument Rate
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0.85 pure
CY2022 GTCH Charge Related To Modification Of Debt
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13777480 usd
CY2022 GTCH Convertible Note Payable Description
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IGOR 1 converted $1,284,600 of the convertible note into 4,185,650 shares of the Company’s common stock. On June 24, 2021, the Company transferred 5,500,000 SURG shares received as repayment of $660,000 of this convertible note
CY2021 GTCH Convertible Note Payable Description
ConvertibleNotePayableDescription
IGOR 1 converted $1,659,869 of the convertible note into 590,117,647 shares of the Company’s common stock.
CY2020Q3 GTCH Maturity Date Extension Fees
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CY2022Q4 us-gaap Other Long Term Notes Payable
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CY2021Q4 us-gaap Other Long Term Notes Payable
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CY2022Q4 us-gaap Interest Payable Current And Noncurrent
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CY2021Q4 us-gaap Interest Payable Current And Noncurrent
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CY2022Q4 GTCH Convertible Note Payable To Stanley Hills
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116605 usd
CY2021Q4 GTCH Convertible Note Payable To Stanley Hills
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116605 usd
CY2022Q4 GTCH Other Convertible Notes Payable Current
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116605 usd
CY2021Q4 GTCH Other Convertible Notes Payable Current
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116605 usd
CY2022Q4 GTCH Less Current Portion Of Convertible Note Payable
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-116605 usd
CY2021Q4 GTCH Less Current Portion Of Convertible Note Payable
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-116605 usd
CY2022Q4 GTCH Total Notes Payables
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350000 usd
CY2021Q4 GTCH Total Notes Payables
TotalNotesPayables
2950000 usd
CY2022Q4 GTCH Note Payables
NotePayables
350000 usd
CY2021Q4 GTCH Note Payables
NotePayables
2950000 usd
CY2022Q4 GTCH Current Portion Of Notes Payables
CurrentPortionOfNotesPayables
-41137 usd
CY2021Q4 GTCH Current Portion Of Notes Payables
CurrentPortionOfNotesPayables
-2612397 usd
CY2022Q4 GTCH Long Term Note Payables
LongTermNotePayables
308863 usd
CY2021Q4 GTCH Long Term Note Payables
LongTermNotePayables
337603 usd
CY2022 GTCH Schedule Of Note Payable Related Parties Table Textblock
ScheduleOfNotePayableRelatedPartiesTableTextblock
<table cellpadding="0" cellspacing="0" id="xdx_895_ecustom--ScheduleOfNotePayableRelatedPartiesTableTextblock_zn8abDs1Dstf" style="font: 12pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - Notes Payable, Non-related Parties and Related Party (Details 1)"> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; font-size: 10pt; text-align: left; text-indent: -10pt"><span id="xdx_8BB_zeM1c6FMfI8i" style="display: none">Schedule of notes payable related parties</span></td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right"> </td><td style="font-size: 10pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="font-size: 10pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 31,</span></td><td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="font-size: 10pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 31,</span></td></tr> <tr style="vertical-align: bottom"> <td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; width: 56%; font-size: 10pt; text-align: left; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alpha Eda note payable</span></td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_986_ecustom--TotalNotesPayableRelatedParty_c20221231__us-gaap--BusinessAcquisitionAxis__custom--AlphaEdaMember_pp0p0" style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right" title="Total notes payable"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,000</span></td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="width: 8%; font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; width: 1%; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_986_ecustom--TotalNotesPayableRelatedParty_c20211231__us-gaap--BusinessAcquisitionAxis__custom--AlphaEdaMember_pp0p0" style="border-bottom: Black 1pt solid; width: 12%; font-size: 10pt; text-align: right" title="Total notes payable"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,000</span></td><td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; font-size: 10pt; text-align: left; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total notes payable, related party</span></td><td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_98A_ecustom--TotalNotesPayableRelatedParties_c20221231_pp0p0" style="font-size: 10pt; text-align: right" title="Total notes payable"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,000</span></td><td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_98B_ecustom--TotalNotesPayableRelatedParties_c20211231_pp0p0" style="font-size: 10pt; text-align: right" title="Total notes payable"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,000</span></td><td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; font-size: 10pt; text-align: left; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unamortized debt discount</span></td><td style="font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_98A_ecustom--DebtInstrumentsUnamortizedDiscountCurrent_iI_pp0p0_c20221231_z2WeupVlCiYj" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Unamortized debt discount"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1461">—</span></span></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_98F_ecustom--DebtInstrumentsUnamortizedDiscountCurrent_iI_pp0p0_c20211231_z18vS4c7SUW7" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Unamortized debt discount"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1463">—</span></span></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; font-size: 10pt; text-align: left; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes payable, net, related party</span></td><td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_98C_ecustom--NotesPayableRelatedParties_c20221231_pp0p0" style="font-size: 10pt; text-align: right" title="Notes payable"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,000</span></td><td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_98D_ecustom--NotesPayableRelatedParties_c20211231_pp0p0" style="font-size: 10pt; text-align: right" title="Notes payable"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">140,000</span></td><td style="font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding: 0pt 0pt 0pt 10pt; font-size: 10pt; text-align: left; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less current portion</span></td><td style="font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_981_ecustom--CurrentPortionOfNotePayableRelatedParties_c20221231_pp0p0" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Less current portion"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(140,000</span></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font-size: 10pt; padding-bottom: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td id="xdx_980_ecustom--CurrentPortionOfNotePayableRelatedParties_c20211231_pp0p0" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right" title="Less current portion"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(140,000</span></td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0pt 0pt 0pt 10pt; font-size: 10pt; text-align: left; text-indent: -10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes payable, net, related party, long-term portion</span></td><td style="font-size: 10pt; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_98B_ecustom--NotesPayableNetRelatedPartyLongtermPortion_c20221231_pp0p0" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Notes payable, net, related party, long-term portion"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1473">—</span></span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td><td style="font-size: 10pt; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td id="xdx_98A_ecustom--NotesPayableNetRelatedPartyLongtermPortion_c20211231_pp0p0" style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right" title="Notes payable, net, related party, long-term portion"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl1475">—</span></span></td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> </table>
CY2022Q4 GTCH Total Notes Payable Related Parties
TotalNotesPayableRelatedParties
140000 usd
CY2021Q4 GTCH Total Notes Payable Related Parties
TotalNotesPayableRelatedParties
140000 usd
CY2022Q4 GTCH Notes Payable Related Parties
NotesPayableRelatedParties
140000 usd
CY2021Q4 GTCH Notes Payable Related Parties
NotesPayableRelatedParties
140000 usd
CY2022Q4 GTCH Current Portion Of Note Payable Related Parties
CurrentPortionOfNotePayableRelatedParties
-140000 usd
CY2021Q4 GTCH Current Portion Of Note Payable Related Parties
CurrentPortionOfNotePayableRelatedParties
-140000 usd
CY2022Q4 GTCH Accrued Settlement
AccruedSettlement
4090057 usd
CY2021Q4 GTCH Accrued Settlement
AccruedSettlement
4090057 usd
CY2022Q4 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
0.001
CY2021Q4 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
0.17
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0476 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2020 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Issues
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues
5767230 usd
CY2020 GTCH Fair Value Of Beneficial Conversion Feature Of Debt Converted
FairValueOfBeneficialConversionFeatureOfDebtConverted
-2038392 usd
CY2020 GTCH Fair Value Net Derivative Asset Liability Measured On Recurring Basis Change In Unrealized Gain Los
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisChangeInUnrealizedGainLos
1533610 usd
CY2020Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
5262448 usd
CY2021 GTCH Debt Modification
DebtModification
13777480 usd
CY2021 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Issues
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues
1480439 usd
CY2021 GTCH Fair Value Of Beneficial Conversion Feature Of Debt Converted
FairValueOfBeneficialConversionFeatureOfDebtConverted
-116669 usd
CY2021 GTCH Fair Value Net Derivative Asset Liability Measured On Recurring Basis Change In Unrealized Gain Los
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisChangeInUnrealizedGainLos
1339117 usd
CY2021Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
10192485 usd
CY2022 us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Issues
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues
325915 usd
CY2022 GTCH Fair Value Of Beneficial Conversion Feature Of Debt Converted
FairValueOfBeneficialConversionFeatureOfDebtConverted
-2209887 usd
CY2022 GTCH Fair Value Net Derivative Asset Liability Measured On Recurring Basis Change In Unrealized Gain Los
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisChangeInUnrealizedGainLos
-6594370 usd
CY2022Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
1714143 usd
CY2022Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001
CY2022Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
2000000000 shares
CY2022Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
2000000000 shares
CY2022 us-gaap Debt Conversion Converted Instrument Shares Issued1
DebtConversionConvertedInstrumentSharesIssued1
847133242 shares
CY2022 us-gaap Debt Conversion Converted Instrument Amount1
DebtConversionConvertedInstrumentAmount1
2158969 usd
CY2022 GTCH Debt Conversion Converted Instrument Accrued Interest
DebtConversionConvertedInstrumentAccruedInterest
6491 usd
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Forfeitures
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures
240000 shares
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
392870 shares
CY2022 GTCH Weighted Average Exercise Price Warrants Outstanding Beginning
WeightedAverageExercisePriceWarrantsOutstandingBeginning
74.97
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Remaining Contractual Terms
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms
P0Y9M3D
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
70770 shares
CY2022 GTCH Weighted Average Exercise Price Warrants Outstanding End
WeightedAverageExercisePriceWarrantsOutstandingEnd
205.07
CY2022 GTCH Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Remaining Contractual Terms1
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms1
P0Y3M18D
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
70770 shares
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
9182327 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
8945238 usd
CY2022Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
9182327 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
8945238 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
9182327 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
8945238 usd
CY2022Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
237089 usd
CY2021Q4 us-gaap Operating Loss Carryforwards Valuation Allowance
OperatingLossCarryforwardsValuationAllowance
712442 usd
CY2022Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
31663196 usd
CY2022 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
1118010 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.210 pure
CY2021 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-7125391 usd
CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.210 pure
CY2022 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
425908 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.080 pure
CY2021 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
-2714435 usd
CY2021 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.080 pure
CY2022 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
-1784116 usd
CY2022 GTCH Income Tax Reconciliation Permanent Differences
IncomeTaxReconciliationPermanentDifferences
-0.335 pure
CY2021 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
9127383 usd
CY2021 GTCH Income Tax Reconciliation Permanent Differences
IncomeTaxReconciliationPermanentDifferences
-0.269 pure
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
237089 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
0.045 pure
CY2021 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
712442 usd
CY2021 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
-0.021 pure
CY2022Q4 GTCH Note Payable Related Parties Classified Current
NotePayableRelatedPartiesClassifiedCurrent
140000 usd
CY2021Q4 GTCH Note Payable Related Parties Classified Current
NotePayableRelatedPartiesClassifiedCurrent
140000 usd
CY2020Q3 us-gaap Loss Contingency Damages Sought Value
LossContingencyDamagesSoughtValue
48844 usd
CY2020Q3 GTCH Legal Cost
LegalCost
716 usd
CY2020Q4 us-gaap Loss Contingency Damages Sought Value
LossContingencyDamagesSoughtValue
48844 usd
CY2020Q4 GTCH Legal Cost
LegalCost
716 usd
CY2022 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p id="xdx_80C_eus-gaap--LossContingencyDisclosures_zD2gPYOeJc4c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt; text-align: left"><b>Note 18 - <span id="xdx_820_zAvGRkwbSyY4">Contingencies</span> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>GBT Technologies, S.A.</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On September 14, 2018, the Company entered into an Exclusive Intellectual Property License and Royalty Agreement (the “GBT License Agreement”) with GBT-CR, a fully compliant and regulated crypto currency exchange platform that currently operates in Costa Rica as a decentralized crypto currency platform, pursuant to which, among other things, the Company granted to GBT-CR an exclusive, royalty-bearing right and license relating intellectual property relating to systems and methods of converting electronic transmissions into digital currency as reflected in that certain patent filed with the United Stated Patent and Trademark Office on or about June 14, 2018 (EFS ID: 32893586; Application Number: 16008069; Type: Utility under 35 USC 111(a); Confirmation Number: 6787)(collectively, the “Digital Currently Technology”). Pursuant to the GBT License Agreement, the Company granted GBT-CR an exclusive worldwide license to use the Digital Currency Technology to make, use, sell, lease or otherwise commercialize and dispose of products and devices utilizing the Digital Currently Technology. Under the terms of the GBT License Agreement, the Company is entitled to receive a royalty payment of 2% of gross revenue of each licensed product sold by GBT-CR during the period starting in which revenue is first generated using the licensed products and continuing for five years thereafter. Upon signing the GBT-CR License Agreement, GBT-CR paid the Company $<span id="xdx_90C_eus-gaap--Revenues_pp0p0_c20180101__20181231__dei--LegalEntityAxis__custom--GBTTechnologiesMember_zYaU9elNITya" title="Revenues">300,000 </span>which is nonrefundable. The Company recognized the $300,000 as revenue during the years ended December 31, 2018. Upon GBT-CR making available for sale (the “Commercial Event”) an ICO (Initial Coin Offering) (the “Coin”), GBT-CR will make a payment to the Company of $<span id="xdx_908_ecustom--PaymentForExpenses_pp0p0_c20180101__20181231__dei--LegalEntityAxis__custom--GBTTechnologiesMember_zVgMmn8NZpGc" title="Payment for expenses">5,000,000</span>. Further, upon the Commercial Event, GBT-CR will grant the Company the ability to acquire 30% of the Coin at a 30% discount of such offering price of the Coin. The GBT License Agreement commenced as of the signing date and, unless terminated in accordance with the termination provisions of the GBT License Agreement, shall remain in force until the expiration of the patent pertaining to the Digital Currency Technology; provided that the right to use trade secrets shall survive the expiration of the GBT License Agreement provided the Company has not terminated. Prior to the signing of the GBT License Agreement, GBT-CR advanced $<span id="xdx_907_eus-gaap--DeferredRevenue_iI_pp0p0_c20221231__dei--LegalEntityAxis__custom--GBTTechnologiesMember_zfTg9oenR5n1" title="Unearned revenue">200,000</span> to the Company, which the parties have agreed will be applied toward the $5,000,000 fee when it becomes due. On February 27, 2020 GBT Technologies, S.A., as successor in interest to Hermes Roll, LLC had notified the Company that it was in default on its Amended and Restated Territorial License Agreement (“ARTLA”) dated June 15, 2015 and that the ARTLA had been cancelled and rescinded.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><i>Stock Loan Receivable</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On January 8, 2019, the Company entered into a Stock Pledge Agreement with Latin American Exchange Latinex Casa de Cambio, S.A., a Costa Rica corporation (“Latinex”), to provide that Latinex may maintain its required regulatory capital as required by various regulators. The Company pledged 4,006 restricted shares of its common stock valued at $7,610,147 (based on the closing price on the grant date) for three years for an annual payment of $375,000 paid in quarterly installments of $93,750. In lieu of cash payment, Latinex may pay the Company in virtual currency of WISE Network S.A. valued at a 50% discount of its offering price of $10 per token. In the event that Latinex’s required capital has decreased below $5,000,000, Latinex is permitted to sell the pledged shares of common stock only in an amount to ensure that Latinex can satisfy the required capital levels. The Company must consent to such sale of the shares of common stock, which may not be unreasonably withheld. Upon expiration of the agreement, the remaining shares of common stock shall be returned to the Company free and clear of all liens. The Company recorded the value of these shares of common stock as a stock loan receivable which is presented as a contra-equity account in the accompanying consolidated balance sheets. At December 31, 2019, the Company wrote off the accrued interest income as Latinex did not perform any payment and the Company has no mean to enforce this payment. Latinex agreed in principle to return the pledged 4,006 restricted shares to the Company for cancellation. The 4,006 restricted shares have not yet been returned to the Company as of December 31, 2022.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><i><span style="text-decoration: underline">Assignment of lease agreement</span></i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On May 17, 2022, Mahaser LLC (“Assignee”) entered into an assignment and assumption of lease agreement by and between 2819 Coldwater LLC (“Assignor”), Sunset Place Holdings LLC (“Lessor”) and Yossi Attia (“Guarantor”). Pursuant to the agreement, Lessor agreed to lease to Assignor certain Standard Industrial/Commercial Multi-Tenant Lease – Gross agreement dated February 7, 2022 (the “Lease”) and expiring on January 31, 2024, which premises commonly known as 8265 Sunset Boulevard, Suite #107, West Hollywood, CA 90046. The base rent payment shall equal $4,100 per month and share of common area operating expense shall equal $<span id="xdx_90D_eus-gaap--OperatingExpenses_pp0p0_c20220501__20220517_zuDLkM9LBRv5" title="Operating expense">200</span> per month. Guarantor has guaranteed payment of Assignor’s obligations under the Lease and Assignor assigned all of its right, title and interest in the Lease to Assignee and Assignee assumed Assignor’s obligations under the Lease.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
CY2022Q2 us-gaap Operating Expenses
OperatingExpenses
200 usd

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