2023 Q3 Form 10-Q Financial Statement

#000173112223001540 Filed on August 17, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2022 Q2
Revenue $131.4K $345.0K
YoY Change -61.91% 666.62%
Cost Of Revenue $148.8K $179.5K
YoY Change -17.07%
Gross Profit -$17.41K $165.5K
YoY Change -110.52%
Gross Profit Margin -13.25% 47.98%
Selling, General & Admin $127.7K $190.6K $926.3K
YoY Change -49.99% -79.42% 32.29%
% of Gross Profit 559.69%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $317.4K $334.5K $926.3K
YoY Change -49.9% -63.89% 32.29%
Operating Profit -$317.4K -$351.9K -$760.8K
YoY Change -39.95% -53.75%
Interest Expense $156.5K $359.3K -$2.737M
YoY Change -40.24% -113.13% -210.19%
% of Operating Profit
Other Income/Expense, Net $283.4K -$9.564M $56.83K
YoY Change -87.67% -16928.88% -81.06%
Pretax Income -$33.98K -$9.916M -$3.441M
YoY Change -101.92% 188.15% -87.28%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$72.56K -$9.909M -$3.441M
YoY Change -104.1% 187.96% -87.28%
Net Earnings / Revenue -7540.02% -997.49%
Basic Earnings Per Share $0.00 $0.00 -$0.01
Diluted Earnings Per Share $0.00 $0.00 -$9.715K
COMMON SHARES
Basic Shares Outstanding 6.704B shares 2.930B shares 354.2M shares
Diluted Shares Outstanding 28.67B shares 28.49B shares 4.526B shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2022 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $39.10K $56.57K $161.3K
YoY Change -70.13% -64.92% -46.39%
Cash & Equivalents $592.00 $44.07K $464.4K
Short-Term Investments $38.51K $12.51K $87.16K
Other Short-Term Assets $0.00 $452.00 $434.2K
YoY Change -100.0% -99.9%
Inventory $12.86K $17.05K
Prepaid Expenses
Receivables $35.54K $102.2K
Other Receivables $197.2K $0.00
Total Short-Term Assets $239.9K $354.6K $714.7K
YoY Change -72.15% -50.38% -52.38%
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 -100.0%
TOTAL ASSETS
Total Short-Term Assets $239.9K $354.6K $714.7K
Total Long-Term Assets $0.00 $0.00 $0.00
Total Assets $239.9K $354.6K $714.7K
YoY Change -72.15% -50.38% -76.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.144M $1.029M $1.526M
YoY Change 4.99% -32.54% 74.78%
Accrued Expenses $1.300M $1.182M $7.736M
YoY Change 96.81% -84.72% 19.97%
Deferred Revenue $0.00 $36.44K
YoY Change -100.0%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $6.808M $6.935M $9.621M
YoY Change -0.54% -27.91% 161.42%
Total Short-Term Liabilities $30.55M $31.05M $25.09M
YoY Change 33.31% 23.79% 0.31%
LONG-TERM LIABILITIES
Long-Term Debt $312.2K $310.8K $352.0K
YoY Change 0.13% -11.72% -96.15%
Other Long-Term Liabilities $0.00
YoY Change
Total Long-Term Liabilities $312.2K $310.7K $352.0K
YoY Change 0.13% -11.72% -96.15%
TOTAL LIABILITIES
Total Short-Term Liabilities $30.55M $31.05M $25.09M
Total Long-Term Liabilities $312.2K $310.7K $352.0K
Total Liabilities $30.86M $31.36M $25.44M
YoY Change 32.87% 23.3% -25.53%
SHAREHOLDERS EQUITY
Retained Earnings -$314.8M -$314.8M
YoY Change 4.14%
Common Stock $69.04K $55.51K
YoY Change 483.19%
Preferred Stock
YoY Change
Treasury Stock (at cost) $643.1K $643.1K
YoY Change 0.0%
Treasury Stock Shares
Shareholders Equity -$30.67M -$31.05M -$24.72M
YoY Change
Total Liabilities & Shareholders Equity $239.9K $354.6K $714.7K
YoY Change -72.15% -50.38% -76.18%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2022 Q2
OPERATING ACTIVITIES
Net Income -$72.56K -$9.909M -$3.441M
YoY Change -104.1% 187.96% -87.28%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities $147.5K -$104.6K -$8.900K
YoY Change 50.39% 1074.83% -98.18%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 -$150.0K
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00 -$150.0K
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $163.6K
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -89.97K 89.57K 126.6K
YoY Change 141.98% -29.24% -68.85%
NET CHANGE
Cash From Operating Activities 147.5K -104.6K -8.900K
Cash From Investing Activities 0.000 0.000 -150.0K
Cash From Financing Activities -89.97K 89.57K 126.6K
Net Change In Cash 57.53K -14.99K -32.32K
YoY Change -5.53% -53.62% -61.11%
FREE CASH FLOW
Cash From Operating Activities $147.5K -$104.6K -$8.900K
Capital Expenditures
Free Cash Flow
YoY Change

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<p id="xdx_84F_eus-gaap--UseOfEstimates_zJh9eeFjsnTf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_86C_zDB1aSUKt1P9">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 style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
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<p id="xdx_849_eus-gaap--DerivativesReportingOfDerivativeActivity_zUsx5diY1nQi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><span id="xdx_866_znc0wkad3IQg">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 June 30, 2023 and December 31, 2022, 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>
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gtch Convertible Note Payable Description
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gtch Schedule Of Note Payable Related Parties Table Textblock
ScheduleOfNotePayableRelatedPartiesTableTextblock
<table cellpadding="0" cellspacing="0" id="xdx_890_ecustom--ScheduleOfNotePayableRelatedPartiesTableTextblock_z7tA1a8iXdL1" style="font: 10pt 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"> <td style="text-align: left"><span id="xdx_8B4_zlRGo93iZiTc" style="display: none">Schedule of notes payable related parties</span></td> <td> </td> <td colspan="3" style="text-align: center"> </td> <td> </td> <td colspan="3" style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">June 30,</span></td> <td><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">December 31,</span></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">2023</span></td> <td style="padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">2022</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Alpha Eda note payable</span></td> <td style="width: 8%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td> <td id="xdx_987_ecustom--TotalNotesPayableRelatedParty_iI_pp0p0_c20230630__us-gaap--BusinessAcquisitionAxis__custom--AlphaEdaMember_zs78rJOZzKxb" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Total notes payable"><span style="font: 10pt Times New Roman, Times, Serif">140,000</span></td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="width: 8%; padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td> <td id="xdx_986_ecustom--TotalNotesPayableRelatedParty_c20221231__us-gaap--BusinessAcquisitionAxis__custom--AlphaEdaMember_pp0p0" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Total notes payable"><span style="font: 10pt Times New Roman, Times, Serif">140,000</span></td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Total notes payable, related party</span></td> <td><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_981_ecustom--TotalNotesPayableRelatedParties_iI_pp0p0_c20230630_zTqiETHU95za" style="text-align: right" title="Total notes payable"><span style="font: 10pt Times New Roman, Times, Serif">140,000</span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_98A_ecustom--TotalNotesPayableRelatedParties_c20221231_pp0p0" style="text-align: right" title="Total notes payable"><span style="font: 10pt Times New Roman, Times, Serif">140,000</span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Unamortized debt discount</span></td> <td style="padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_98C_ecustom--DebtInstrumentsUnamortizedDiscountCurrents_iI_pdp0_c20230630_zi0cLm4R2RQf" style="border-bottom: Black 1pt solid; text-align: right" title="Unamortized debt discount"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1450">—</span></span></td> <td style="padding-bottom: 1pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_98E_ecustom--DebtInstrumentsUnamortizedDiscountCurrents_c20221231_pdp0" style="border-bottom: Black 1pt solid; text-align: right" title="Unamortized debt discount"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1452">—</span></span></td> <td style="padding-bottom: 1pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Notes payable, net, related party</span></td> <td><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_98F_ecustom--NotesPayableRelatedParties_iI_pp0p0_c20230630_zxoacfERY5k2" style="text-align: right" title="Notes payable"><span style="font: 10pt Times New Roman, Times, Serif">140,000</span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_98C_ecustom--NotesPayableRelatedParties_c20221231_pp0p0" style="text-align: right" title="Notes payable"><span style="font: 10pt Times New Roman, Times, Serif">140,000</span></td> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Less current portion</span></td> <td style="padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_981_ecustom--CurrentPortionOfNotePayableRelatedParties_iI_pp0p0_c20230630_zeX9mz5JIW3d" style="border-bottom: Black 1pt solid; text-align: right" title="Less current portion"><span style="font: 10pt Times New Roman, Times, Serif">(140,000</span></td> <td style="padding-bottom: 1pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td> <td style="padding-bottom: 1pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 1pt solid; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td id="xdx_981_ecustom--CurrentPortionOfNotePayableRelatedParties_c20221231_pp0p0" style="border-bottom: Black 1pt solid; text-align: right" title="Less current portion"><span style="font: 10pt Times New Roman, Times, Serif">(140,000</span></td> <td style="padding-bottom: 1pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">)</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">Notes payable, net, related party, long-term portion</span></td> <td style="padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td> <td id="xdx_989_ecustom--NotesPayableNetRelatedPartyLongtermPortion_iI_pdp0_c20230630_ziPFb7D7sQ8k" style="border-bottom: Black 2.5pt double; text-align: right" title="Notes payable, net, related party, long-term portion"><span style="font: 10pt Times New Roman, Times, Serif"><span style="-sec-ix-hidden: xdx2ixbrl1462">—</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="padding-bottom: 2.5pt"><span style="font: 10pt Times New Roman, Times, Serif"> </span></td> <td style="border-bottom: Black 2.5pt double; text-align: left"><span style="font: 10pt Times New Roman, Times, Serif">$</span></td> <td id="xdx_983_ecustom--NotesPayableNetRelatedPartyLongtermPortion_c20221231_pdp0" style="border-bottom: Black 2.5pt double; text-align: right" title="Notes payable, net, related party, long-term portion"><span style="font: 10pt Times New Roman, Times, Serif"></span><span style="-sec-ix-hidden: xdx2ixbrl1464">—</span></td> <td style="padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif"> </span></td></tr> </table>
CY2023Q2 gtch Total Notes Payable Related Parties
TotalNotesPayableRelatedParties
140000 usd
CY2022Q4 gtch Total Notes Payable Related Parties
TotalNotesPayableRelatedParties
140000 usd
CY2023Q2 gtch Notes Payable Related Parties
NotesPayableRelatedParties
140000 usd
CY2022Q4 gtch Notes Payable Related Parties
NotesPayableRelatedParties
140000 usd
CY2023Q2 gtch Current Portion Of Note Payable Related Parties
CurrentPortionOfNotePayableRelatedParties
-140000 usd
CY2022Q4 gtch Current Portion Of Note Payable Related Parties
CurrentPortionOfNotePayableRelatedParties
-140000 usd
CY2023Q2 gtch Accrued Settlement
AccruedSettlement
4090057 usd
CY2022Q4 gtch Accrued Settlement
AccruedSettlement
4090057 usd
CY2023Q2 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
0.00042
CY2022Q4 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
0.001
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2022Q4 us-gaap Derivative Liabilities
DerivativeLiabilities
1714142 usd
us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Issues
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputsReconciliationIssues
1369920 usd
gtch Fair Value Of Beneficial Conversion Feature Of Debt Converted
FairValueOfBeneficialConversionFeatureOfDebtConverted
2002684 usd
gtch Fair Value Net Derivative Asset Liability Measured On Recurring Basis Change In Unrealized Gain Los
FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisChangeInUnrealizedGainLos
13028486 usd
CY2023Q2 us-gaap Derivative Liabilities
DerivativeLiabilities
14109864 usd
CY2022Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001
us-gaap Debt Conversion Converted Instrument Shares Issued1
DebtConversionConvertedInstrumentSharesIssued1
3915160446 shares
us-gaap Debt Conversion Converted Instrument Amount1
DebtConversionConvertedInstrumentAmount1
1232709 usd
gtch Debt Conversion Converted Instrument Accrued Interest
DebtConversionConvertedInstrumentAccruedInterest
52211 usd
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
70770 shares
gtch Weighted Average Exercise Price Warrants Outstanding Beginning
WeightedAverageExercisePriceWarrantsOutstandingBeginning
205.07
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Remaining Contractual Terms
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms
P0Y3M18D
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod
60100 shares
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
10670 shares
gtch Weighted Average Exercise Price Warrants Outstanding End
WeightedAverageExercisePriceWarrantsOutstandingEnd
729.90
gtch Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Remaining Contractual Terms1
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms1
P0Y7D
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
10670 shares
gtch Weighted Average Exercise Price Warrants Exercisable At End
WeightedAverageExercisePriceWarrantsExercisableAtEnd
729.90
gtch Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercisable Weighted Average Remaining Contractual Terms
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsExercisableWeightedAverageRemainingContractualTerms
P0Y7D
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
10670 shares
CY2023Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
10670 shares
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p id="xdx_80C_eus-gaap--LossContingencyDisclosures_zMk5IMyDLWT6" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 15 - <span id="xdx_825_zqnIygpKqsf8">Contingencies</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </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_907_eus-gaap--Revenues_pp0p0_c20180101__20181231__dei--LegalEntityAxis__custom--GBTTechnologiesMember_zpUQaAJuJj2h" 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_905_ecustom--PaymentForExpenses_pp0p0_c20180101__20181231__dei--LegalEntityAxis__custom--GBTTechnologiesMember_zkL6lRaEXvfl" 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,</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">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_90A_eus-gaap--DeferredRevenue_iI_pp0p0_c20230630__dei--LegalEntityAxis__custom--GBTTechnologiesMember_zkHomrE5uBT6" 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"></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 <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20190107__20190108_zghQWnb80mCc" title="Restricted shares">4,006</span> restricted shares of its common stock valued at $<span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures_c20190107__20190108_zsooOEprjTZf" title="Value of restricted shares">7,610,147</span> (based on the closing price on the grant date) for three years for an annual payment of $<span id="xdx_900_ecustom--AnnualPayment_iI_c20190108_zf1hziwtlqu7" title="Annual payment">375,000</span> paid in quarterly installments of $<span id="xdx_90B_eus-gaap--DebtInstrumentPeriodicPayment_c20190107__20190108_zxjsP8jtv5vf" title="Instalment paid">93,750</span>. 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 $<span id="xdx_905_ecustom--DecreaseInCapital_c20190107__20190108_z0ShDIxoeMRh" title="Decrease in capital">5,000,000</span>, 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 <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20230101__20230630_zxajeMtD9duf" title="Restricted shares">4,006</span> restricted shares have not yet been returned to the Company as of June 30, 2023.</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"><i>Investment in Surge</i> Holdings<i>, Inc.</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">On September 30, 2019, GBT Technologies Inc. (the “Company”) entered into an Asset Purchase Agreement (“APA”) with Surge Holdings, Inc., a Nevada corporation (“SURG”) pursuant to which the Company agreed to sell and assign to SURG, all the assets and certain specified liabilities, of its ECS Prepaid, Electronic Check Services and the Central State Legal Services businesses for $<span id="xdx_90D_eus-gaap--BusinessCombinationConsiderationTransferred1_pp0p0_c20190929__20190930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SurgeHoldingsMember__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zVQkzyuyXbD1" title="Business consideration values">5,000,000</span> to be paid through the issuance of <span id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20190929__20190930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SurgeHoldingsMember__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zle3gIdhtnP5" title="Sale of common stock">3,333,333</span> shares of SURG’s common stock (the “SURG Common Stock”) and a convertible promissory note in favor of the Company in the principal amount of $<span id="xdx_909_eus-gaap--DebtInstrumentPeriodicPaymentPrincipal_c20190929__20190930__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SurgeHoldingsMember__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_pp0p0" title="Payment of principal">4,000,000</span> (the “SURG Note”), convertible into SURG’s shares of common stock. On January 7, 2022, the Company received payments from Surgepays Inc. (formerly known as Surge Holdings, Inc.) in total of $<span id="xdx_901_ecustom--SettlementPursuantsAmount_pp0p0_c20220106__20220107__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SurgeHoldingsMember__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zcpfPmHmgqO3" title="Settlement pursuant amount">3,750,000</span> pursuant to the terms of the Settlement Agreement dated December 22, 2021.</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">On June 23, 2020, SURG entered into an Exchange Agreement (the “AltCorp Exchange Agreement”) with AltCorp Trading LLC (“AltCorp”) with such AltCorp Exchange Agreement being consented and agreed to by the Company, the parent of AltCorp. At the expiration of the lock-up period, in the event the VWAP for the SURG Common Stock was, during the preceding twenty-day trading period, less than $<span id="xdx_900_eus-gaap--SaleOfStockPricePerShare_iI_c20200623__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SurgeHoldingsMember__us-gaap--TypeOfArrangementAxis__custom--AltCorpExchangeAgreementMember_zMm4x5yV8IY" title="Price per share">0.50</span> per share, AltCorp retained the right to reserve additional shares of SURG Common Stock equal to the True-Up Value as defined in the AltCorp Exchange Agreement.</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">On March 8, 2020, SURG filed a lawsuit against its transfer agent from transferring millions of SURG stock that is currently in possession by the Company and assigned to Stanley Hills, LLC. On January 1, 2021, SURG, AltCorp and Stanley Hills, LLC (“Stanley”) entered into a Mutual Release and Settlement Agreement (“Settlement Agreement”). Pursuant to the terms of the Settlement Agreement, SURG agreed to amend the AltCorp Exchange Agreement where SURG acknowledged a debt of $<span id="xdx_90B_eus-gaap--DebtCurrent_iI_pp0p0_c20210102__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StanleyHillsLLCMember_zd2Nod0Ji18a" title="Debt">3,300,000</span> (the “Debt”) to be paid in 33 monthly payments of $<span id="xdx_906_eus-gaap--DebtCurrent_c20210102__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StanleyHillsLLCMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_pp0p0" title="Debt">100,000</span> payable in shares of common stock of SURG at a per share price equal the volume weighted average price of Surg’s common stock during the 10 trading days immediately preceding the issuance. SURG paid $<span id="xdx_904_eus-gaap--Cash_c20210102__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StanleyHillsLLCMember_pp0p0" title="Cash">400,000</span> in cash and $<span id="xdx_90E_eus-gaap--Cash_c20210102__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--StanleyHillsLLCMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_pp0p0" title="Cash">800,000</span> by shares. The SURG common stock issued to Altcorp have been pledged since August 12, 2020 for the benefit of Stanley to secure Stanley’s note payable by the Company. Accordingly, the SURG Common Stock issued to AltCorp as a result of the Settlement Agreement were pledged to Stanley. As of December 31, 2021 there were no surge shares pledges after the final settlement signed on December 22, 2021 and that replaced all prior settlement agreement. The final settlement SURG agreed to make total payments of $<span id="xdx_902_eus-gaap--RepaymentsOfDebt_pp0p0_c20220106__20220107__dei--LegalEntityAxis__custom--SurgeHoldingsIncMember_zOi6Ih601bd8" title="Repayment of debt">4,200,000</span> to the Company’s trust account on or prior to January 7, 2022. <span id="xdx_903_eus-gaap--RelatedPartyTransactionDescriptionOfTransaction_c20230101__20230630__dei--LegalEntityAxis__custom--SurgeHoldingsIncMember_zxloN2iRi44a" title="Related party, description">This $4.2 million amount consists of $450,000 paid by SURG 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 $3,750,000 was recorded as other receivable as of December 31, 2021. As of December 31, 2021, the Company recorded an outstanding payable to Stanley amounted $1,862,928 recorded under accrued expenses.</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">Subsequently, SURG was a party to two lawsuits in state District Court, the Eighth Judicial District Court for Clark County, Nevada involving AltCorp, Stanley and Glen Eagles Acquisition LP (the “AltCorp Parties.”). Each of these lawsuits were ultimately disputes relating to the total consideration SURG was to pay the Company under the APA.</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">On October 18, 2021, the AltCorp Parties, the Company, and SURG entered into a Memorandum of Understanding (the “MOU”) to set up a framework for an attempt to settle the two lawsuits.</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">On December 22, 2021 (the “Effective Date”), pursuant to the framework in the MOU, the AltCorp Parties (and an additional third party), the Company, ECS, and SURG, Kevin Brian Cox (SURG’s Chief Executive Office–) - in his individual capacity, entered into a Resolution of Purchase, Mutual Release, and Settlement Agreement (the “Final Settlement Agreement”) to settle the two lawsuits and resolve all disputes related to the consideration paid by SURG to the Company in connection with the APA.</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"><span style="font-size: 10pt">The Final Settlement Agreement, among other resolutions, essentially provides the following: i) From the total consideration of the Final Settlement Agreement, the amount of $<span id="xdx_90E_eus-gaap--EscrowDeposit_iI_pp0p0_c20230630__dei--LegalEntityAxis__custom--SurgeHoldingsIncMember_z5OW2dXB2j62" title="Escrow deposit amount">375,000</span> (“Escrow Amount”) will be deposited by SURG in escrow. SURG has acquired the Company’s rights to a certain Master Distribution and Service Agreement (“MDA”). Under certain circumstances, if the result of the Company’s lawsuit against a third party (the “GBT Lawsuit”) is a monetary judgment without the assignment or legal decree of ownership of the MDA, the Company shall be entitled to receive the Escrow Amount and shall assign to SURG the first $<span id="xdx_900_ecustom--EscrowAmountReceived_pp0p0_c20230101__20230630_zxu8SGcIsFZ1" title="Escrow amount received">1,000,000</span> the Company recovers from the defendants in the GBT Lawsuit. In the event that the Company does not prevail in the GBT Lawsuit then it shall be entitled to release of the Escrow Amount but shall be responsible for any fees and costs obligation sought by the defendants in the GBT Lawsuit.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">(ii) <span id="xdx_904_ecustom--FinalSettlementAgreementDescription_c20230101__20230630_zshmrjE61WVh" title="Final settlement agreement, description">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.</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">(iii) Potential payments to third parties.</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 Final Settlement Agreement replaces all prior agreements between the parties. In addition, within three (3) trading days of the last payment of $<span id="xdx_906_eus-gaap--ProceedsFromRepaymentsOfRelatedPartyDebt_pn3n3_dm_c20230101__20230630_zyobFEVOIFld" title="Related party payment">4.2</span> million payment to Stanley being made, the parties shall make filings with the state District Court in Clark County, Nevada to dismiss both lawsuits, including, regarding the lawsuit filed by AltCorp Trading, LLC, the dismissal of the lawsuit as to VStock Transfer, LLC. The parties agreed to a full mutual release of any disputes or claims between the parties.</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 final settlement of $<span id="xdx_906_ecustom--SettlementAmount_iI_pp0p0_c20220131_zdIbRtAPvRK1" title="Settlement amount">3,750,000</span> was received by the Company in January 2022 and paid out $<span id="xdx_909_eus-gaap--ProceedsFromShortTermDebt_pp0p0_c20220101__20221231_zHmrcIbZBI72" title="Payments for debt">3,750,000</span> to the third parties before December 31, 2022.</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">As the Company committed to assign certain revenue share agreement to SURG as part of the Company’s settlement with RWJ Agreement, on October 5, 2022 and as cumulation of all settlement agreements the Company issued a request to the SURG regarding release of certain escrow funds and the execution of an assignment of rights as contemplated in the aforereferenced agreement.</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">As of June 30, 2023 and as of December, 31 2022 there is no balances with regard to this transactions.</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"><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 $<span id="xdx_90B_eus-gaap--LeaseAndRentalExpense_c20220516__20220517_zcWm0xtknRai" title="Payment of base rent">4,100</span> per month and share of common area operating expense shall equal $<span id="xdx_903_eus-gaap--OperatingExpenses_c20220516__20220517_zFzdXBfpevY9" 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> <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"><i>Metaverse Agreements</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 10, 2022, the Company, entered into a Joint Venture and Territorial License Agreement (the “Metaverse Agreement”) with Ildar Gainulin and Maria Belova (collectively, the “Licensor”).</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 5.2pt 0 0; text-align: justify; background-color: white">Under the Metaverse Agreement, the parties formed Metaverse Kit Corp., a Nevada corporation (“Metaverse Kit”). The purpose of Metaverse Kit was to develop, maintain and support source codes for its proprietary technologies and comprehensive platform that combines a core virtual reality platform and an extended set of real-world functions to provide a metaverse experience initially within the area of sports and then expanding into virtual worlds of entertainment, live events, gaming, communications and other cross over product opportunities (the “Meta Portfolio”). Under the Metaverse Agreement, Licensor agreed to provide Metaverse Kit with the licensed technology and expertise. In connection therewith, the parties entered an Asset Purchase Agreement (the “Metaverse APA”) concurrently with the Metaverse Agreement whereby Licensor sold Metaverse Kit all source codes pertaining to the Meta Portfolio. Further, Licensor provided an exclusive license to Metaverse Kit throughout the world for the invented product/service and the related platforms relating to the Meta Portfolio and to use the know how to develop, manufacture, sell, market and distribute the Meta Portfolio throughout the world. The Company was required to contribute <span id="xdx_905_eus-gaap--SharesIssued_iI_c20230630__dei--LegalEntityAxis__custom--GBTMember_z1JMxuuyWKx2" title="Share issued">500,000,000</span> shares of common stock of the Company (“GBT Shares”) to Metaverse Kit. Licensor and the Company were to each own 50% of Metaverse Kit. The Company pledged its 50% ownership in Metaverse Kit to Igor 1 Corp. to secure a convertible note held by Igor 1 Corp. The Company was to appoint two directors and Licensor was allowed to appoint one director of Metaverse Kit.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 5.2pt 0 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">In addition, Metaverse Kit, Licensor and Elentina Group, LLC (“Elentina”) entered into a Consulting Agreements in which IGBM and Elentina, each were engaged to provide services for $25,000 per month payable quarterly which Metaverse Kit has the option to pay in shares of common stock calculated by the amount owed divided by the Company’s 10-day VWAP. Licensor and Elentina were to provide services in connection with the development of the business as well as Metaverse Kit’s capital raising efforts. The term of the Consulting Agreement was two years.</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">The closing of the Metaverse Agreement occurred on June 13, 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">On March 14, 2023, the Company received a counter signed Settlement Agreement and Release by Licensor dated March 2, 2023 (“Settlement Agreement”). Pursuant to the Settlement Agreement, the parties agreed that Metaverse Agreement, the Metaverse APA and the Consulting Agreement are void and cancelled. Licensor agreed to pay $5,000 to the Company as settlement payment and surrender their shares in Metaverse Kit.</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 February 1, 2023, the Company engaged AlKhatib Consulting Group to provide exclusive representation services in connect with managing market partners, effective on February 1, 2012 for 24 consecutive months.</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"><i>Assets Sale - TREN</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 3, 2023, GBT Tokenize Corp. (“Seller”), a subsidiary that is owned <span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_dp_c20230403__srt--OwnershipAxis__custom--GBTechnologiesIncMember_zZyomYiiiljc" title="Ownership percentage">50</span>% by the Company, entered into an agreement to sell certain assets relating to a proprietary system and method named Avant-Ai to TREN. Avant-Ai is a text-generation, deep learning self-training model. In exchange for the assets, TREN is required to issue <span id="xdx_907_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20230402__20230403__dei--LegalEntityAxis__custom--GBTechnologiesIncMember_zKWDi4CYc7a4" title="Number of shares sold">26,000,000</span> common shares (“Shares”) to Seller. The Shares will be restricted under Rule 144 of the Securities Act of 1933, as amended, and Seller agreed to a lock-up period of nine months following closing. If TREN is unable to up-list to Nasdaq either through a business combination or otherwise within nine months of the closing, Seller may request that all transactions contemplated by the agreement be unwound.</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">On July 18, 2023, TREN changed its name to Avant Technologies, Inc. and its ticker symbol on OTC Markets was changed to AVAI.</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"><i>Potential IP’s Sale</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="color: black">On April 17, 2023, the Company, Bannix Acquisition Corp. (“Bannix”) and EVIE Autonomous Ltd. (“EVIE”) pursuant to which Bannix agreed to acquire EVIE. In addition, Bannix </span>agreed to acquire from the Company the Apollo System which is intellectual property covered by patent application (publication number 2022/0405966) filed with the US Patent and Trademark Office. This patent application describes a machine learning driven technology that controls radio wave transmissions, analyzes their reflections data, and constructs 2D/3D images of stationary and moving objects. The Apollo system is based on radio waves and can detect an entity’s moving and stationary positions, enabling imaging technology to show these movements and positions on a screen in real time. This includes an AI technology that controls the radio waves transmission and analyzes the reflections. The goal is to integrate the Apollo System as an efficient driver monitoring system, detecting impaired or distracted drivers, providing audible and visual alerts. Consummation of the above transactions are subject to the execution of a mutually satisfactory definitive agreement by the Company, Bannix and EVIE (the “Definitive Agreement”).</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"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Service Agreement</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 24, 2023 the Company entered into service agreement with Pacific Capital Markets LLC , where <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230223__20230224__dei--LegalEntityAxis__custom--PacificCaptitalMarketsLLCMember_zQK2SYMyV52d" title="Number of shares issued, shares">100,000,000</span> Shares issued to it for certain for service agreement between Pacific Captital Markets LLC. and the Company. The value of the shares of $<span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20230223__20230224__dei--LegalEntityAxis__custom--PacificCaptitalMarketsLLCMember_zi6qV3xmWFbe" title="Number of shares issued, value">80,000</span> was determined based on the FV of the Company’s common stock. Pacific Capital Markets never granted the contracted services, and been notified accordingly by the Company. Specifically, GBT, as a Nevada Corporation, ”may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the corporation, including, but not limited to, cash, promissory notes, services performed, [or] contracts for services to be performed...” NRS 78.211(1). As such on or Friday, July 14, 2023 the Company’s Board adopted a resolution to immediately cancel the transfer of Shares in its entirety, and commence action on it.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2019Q1 us-gaap Stock Issued During Period Shares Restricted Stock Award Gross
StockIssuedDuringPeriodSharesRestrictedStockAwardGross
4006 shares
CY2019Q1 us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
7610147 usd
CY2019Q1 gtch Annual Payment
AnnualPayment
375000 usd
CY2019Q1 us-gaap Debt Instrument Periodic Payment
DebtInstrumentPeriodicPayment
93750 usd
CY2019Q1 gtch Decrease In Capital
DecreaseInCapital
5000000 usd
us-gaap Stock Issued During Period Shares Restricted Stock Award Gross
StockIssuedDuringPeriodSharesRestrictedStockAwardGross
4006 shares
gtch Escrow Amount Received
EscrowAmountReceived
1000000 usd
gtch Final Settlement Agreement Description
FinalSettlementAgreementDescription
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.
us-gaap Proceeds From Repayments Of Related Party Debt
ProceedsFromRepaymentsOfRelatedPartyDebt
4200000 usd
CY2022Q1 gtch Settlement Amount
SettlementAmount
3750000 usd
CY2022 us-gaap Proceeds From Short Term Debt
ProceedsFromShortTermDebt
3750000 usd
CY2022Q2 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
4100 usd
CY2022Q2 us-gaap Operating Expenses
OperatingExpenses
200 usd
CY2023Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001

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