2023 Q1 Form 10-K Financial Statement

#000126493123000006 Filed on March 31, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $0.00
YoY Change
Cost Of Revenue $0.00
YoY Change
Gross Profit $0.00
YoY Change
Gross Profit Margin
Selling, General & Admin $25.72K $924.8K $1.298M
YoY Change -91.02% 649.79% -26.07%
% of Gross Profit
Research & Development $0.00
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $11.57K $924.8K $1.298M
YoY Change -95.96% 649.79% -26.07%
Operating Profit -$79.83K -$924.8K -$1.504M
YoY Change -72.14% 649.79% -14.34%
Interest Expense $18.71K $843.0K $75.88K
YoY Change -104.13% -5520.9% -90.82%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$29.51K -$331.1K -$1.035M
YoY Change -96.01% 138.38% 68.59%
Income Tax
% Of Pretax Income
Net Earnings -$29.51K -$331.1K -$1.035M
YoY Change -96.01% 138.38% 68.59%
Net Earnings / Revenue
Basic Earnings Per Share $0.00 -$0.02
Diluted Earnings Per Share $0.00 -$0.01 -$0.02
COMMON SHARES
Basic Shares Outstanding 57.11M shares 57.11M shares 57.11M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $80.68K $7.780K $7.780K
YoY Change 25.65% -82.49% -82.49%
Cash & Equivalents $80.68K $7.778K $7.780K
Short-Term Investments
Other Short-Term Assets $0.00
YoY Change -100.0%
Inventory
Prepaid Expenses $0.00
Receivables
Other Receivables
Total Short-Term Assets $80.68K $7.778K $7.780K
YoY Change 11.38% -85.23% -85.22%
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% -100.0% -100.0%
TOTAL ASSETS
Total Short-Term Assets $80.68K $7.778K $7.780K
Total Long-Term Assets $0.00 $0.00 $0.00
Total Assets $80.68K $7.778K $7.780K
YoY Change -73.75% -97.26% -97.26%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $800.4K $797.9K $797.9K
YoY Change -11.48% -18.18% -18.18%
Accrued Expenses $1.716M $1.661M $1.661M
YoY Change 10.24% 7.4% 7.4%
Deferred Revenue
YoY Change
Short-Term Debt $773.3K $773.3K $773.3K
YoY Change 0.0% 0.0% 0.0%
Long-Term Debt Due $45.00K
YoY Change
Total Short-Term Liabilities $3.335M $3.232M $3.232M
YoY Change 3.11% -1.91% -1.91%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $3.335M $3.232M $3.232M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $3.335M $3.232M $3.232M
YoY Change 3.11% -1.91% -1.91%
SHAREHOLDERS EQUITY
Retained Earnings $46.85M $46.82M
YoY Change -202.26%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$3.254M -$3.224M -$3.224M
YoY Change
Total Liabilities & Shareholders Equity $80.68K $7.778K $7.780K
YoY Change -73.75% -97.26% -97.26%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$29.51K -$331.1K -$1.035M
YoY Change -96.01% 138.38% 68.59%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$41.14K -$111.5K -$830.0K
YoY Change -88.04% -62.1% -41.65%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $69.04K $793.4K $793.4K
YoY Change -81.03% -20.05% -20.05%
Cash From Investing Activities $69.04K $793.4K $793.4K
YoY Change -81.03% -20.05% -20.05%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $45.00K
YoY Change
NET CHANGE
Cash From Operating Activities -$41.14K -111.5K -$830.0K
Cash From Investing Activities $69.04K 793.4K $793.4K
Cash From Financing Activities $45.00K
Net Change In Cash $72.90K 681.9K -$36.64K
YoY Change 268.35% -2.33% -91.48%
FREE CASH FLOW
Cash From Operating Activities -$41.14K -$111.5K -$830.0K
Capital Expenditures
Free Cash Flow
YoY Change

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<p id="xdx_842_eus-gaap--DerivativesEmbeddedDerivatives_zWIGy4EgWyJ5" style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Embedded Conversion Features</b></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial conversion feature. </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>  </b></p>
CY2022 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<p id="xdx_846_eus-gaap--DerivativesReportingOfDerivativeActivity_zAERPGXLs0ei" style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Derivative Financial Instruments</b></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including stock purchase warrants, to determine if such instruments are 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 fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income.</p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.  </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
CY2022 us-gaap Debt Instrument Increase Accrued Interest
DebtInstrumentIncreaseAccruedInterest
75883 usd
CY2022 WDDD Stock Split Terms
StockSplitTerms
All common stock numbers and exercise prices in this Note are reflected on a post reverse split (5 to 1) basis. As a result of the reverse split on February 9, 2018
CY2018Q1 us-gaap Stock Issued During Period Shares Stock Splits
StockIssuedDuringPeriodSharesStockSplits
167 shares
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Other Increases Decreases In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOtherIncreasesDecreasesInPeriod
15900000 shares
CY2022Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
300000 shares
CY2022 WDDD Stock Option Plan Expense1
StockOptionPlanExpense1
31807 usd
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0137 pure
CY2022 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 Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.42 pure
CY2022 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0.05
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Per Share Weighted Average Price Of Shares Purchased
ShareBasedCompensationArrangementByShareBasedPaymentAwardPerShareWeightedAveragePriceOfSharesPurchased
0.05
CY2022 WDDD Directors Options Expected Life
DirectorsOptionsExpectedLife
P5Y
CY2022Q1 WDDD Options Repriced
OptionsRepriced
900000 shares
CY2021 us-gaap Stock Issued During Period Shares Other
StockIssuedDuringPeriodSharesOther
297673 shares
CY2021 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
70810 usd
CY2021 WDDD Loss On Shares Issued
LossOnSharesIssued
8685 usd
CY2021 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
109874 usd
CY2022 us-gaap Stock Option Plan Expense
StockOptionPlanExpense
821995 usd
CY2022Q4 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
25800000 shares
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
25800000 shares
CY2022Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
45000000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
17317788 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
17317788 usd
CY2022 us-gaap Valuation Allowance For Impairment Of Recognized Servicing Assets Period Increase Decrease
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsPeriodIncreaseDecrease
198580 usd
CY2021 us-gaap Valuation Allowance For Impairment Of Recognized Servicing Assets Period Increase Decrease
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsPeriodIncreaseDecrease
161009 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
17317788 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
17292188 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
17317788 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
17292188 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2021 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.05 pure
CY2021 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
0.05 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
-0.26 pure
CY2021 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
-0.26 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation Deductions
EffectiveIncomeTaxRateReconciliationDeductions
0.21 pure
CY2018Q3 WDDD Terms Of Employment Agreement
TermsOfEmploymentAgreement
5
CY2018Q3 WDDD Terms Of Employment Agreement Renewal Option
TermsOfEmploymentAgreementRenewalOption
1
CY2018Q3 WDDD Officer Base Salary
OfficerBaseSalary
200000 usd
CY2018Q3 us-gaap Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Rate Of Compensation Increase
DefinedBenefitPlanAssumptionsUsedCalculatingBenefitObligationRateOfCompensationIncrease
0.10 pure
CY2018Q3 WDDD Car Allowance
CarAllowance
500 usd
CY2018Q3 WDDD Annua Bonus
AnnuaBonus
0.025 pure
CY2018Q3 WDDD Additional Bonus
AdditionalBonus
75000 usd
CY2018Q3 WDDD Pretax Income Range Lower
PretaxIncomeRangeLower
1.50 pure
CY2018Q3 WDDD Pretax Income Range Higher
PretaxIncomeRangeHigher
2 pure
CY2018Q3 WDDD Additional Bonus Exceed
AdditionalBonusExceed
0.05 pure
CY2018Q3 us-gaap Life Settlement Contracts Investment Method Five Year Disclosure Premiums To Be Paid
LifeSettlementContractsInvestmentMethodFiveYearDisclosurePremiumsToBePaid
10000 usd
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Maximum Number Of Shares Per Employee
ShareBasedCompensationArrangementByShareBasedPaymentAwardMaximumNumberOfSharesPerEmployee
5000000 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice
0.25
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
2000000 shares
CY2019Q3 WDDD Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number1
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber1
1500000 shares
CY2020Q3 WDDD Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number1
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber1
1500000 shares
CY2018Q3 us-gaap Life Settlement Contracts Fair Value Method Face Value
LifeSettlementContractsFairValueMethodFaceValue
2000000 usd
CY2018Q3 WDDD Payment Amount Based
PaymentAmountBased
2.99 pure
CY2018Q3 WDDD Restrictive Convenants Amount
RestrictiveConvenantsAmount
12 interger
CY2022Q1 us-gaap Legal Fees
LegalFees
17780 usd
CY2021 us-gaap Stock Issued During Period Shares Other
StockIssuedDuringPeriodSharesOther
297673 shares
CY2021 us-gaap Stock Issued During Period Value Other
StockIssuedDuringPeriodValueOther
70810 usd
CY2021 WDDD Loss On Shares Issued
LossOnSharesIssued
8685 usd
CY2021 us-gaap Adjustments To Additional Paid In Capital Equity Component Of Convertible Debt
AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebt
16401 usd
CY2021 us-gaap Repayment Of Notes Receivable From Related Parties
RepaymentOfNotesReceivableFromRelatedParties
9000 usd
CY2022 us-gaap Repayment Of Notes Receivable From Related Parties
RepaymentOfNotesReceivableFromRelatedParties
0 usd
CY2022Q4 us-gaap Accounts Payable And Accrued Liabilities Fair Value Disclosure
AccountsPayableAndAccruedLiabilitiesFairValueDisclosure
53688 usd
CY2021Q4 us-gaap Accounts Payable And Accrued Liabilities Fair Value Disclosure
AccountsPayableAndAccruedLiabilitiesFairValueDisclosure
33899 usd
CY2022 us-gaap Revenue Recognition Services Licensing Fees
RevenueRecognitionServicesLicensingFees
<p id="xdx_80C_eus-gaap--RevenueRecognitionServicesLicensingFees_zfq1ukM03z6i" style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 8 - <span id="xdx_829_zcgsv3dSFKS7">PATENTS</span></b></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Worlds Inc. currently has <span id="xdx_909_ecustom--NumberOfPatents_dc_uInterger_c20220101__20221231_zGo8BzHnXBf2" title="Current patents">nine</span> patents, <span id="xdx_90F_ecustom--PatentNumberOne_uInterger_c20220101__20221231_z7L8k88qbjN8" title="Patent number one">6,219,045</span> - <span id="xdx_909_ecustom--PatentNumberTwo_uInterger_c20220101__20221231_zByIQx08xPCe" title="Patent number two">7,181,690</span> - <span id="xdx_90C_ecustom--PatentNumberThree_uInterger_c20220101__20221231_zOMcEAs3VnFl" title="Patent number three">7,493,558</span> – <span id="xdx_90E_ecustom--PatentNumberFour_uInterger_c20220101__20221231_z8SIIPH5Mk56" title="Patent number four">7,945,856</span>, - <span id="xdx_90E_ecustom--PatentNumberFive_uInterger_c20220101__20221231_ztunt1m5AsDl" title="Patent number five">8,082,501</span>, – <span id="xdx_905_ecustom--PatentNumberSix_uInterger_c20220101__20221231_zx5liHySoi6a" title="Patent number six">8,145,998</span></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">– <span id="xdx_907_ecustom--PatentNumberSeven_uInterger_c20220101__20221231_z5O0Gjf5745i" title="Patent number seven">8,161,383</span>, – <span id="xdx_908_ecustom--PatentNumberEight_uInterger_c20220101__20221231_zk2oRZKnU4j1" title="Patent number eight">8,407,592</span> and <span id="xdx_902_ecustom--PatentNumberNine_uInterger_c20220101__20221231_zKeUA5r5Ifg4" title="Patent number nine"><span style="-sec-ix-hidden: xdx2ixbrl0675">8,640,028. </span></span>All of the patents have expired.</p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Legal Proceedings section for more information on the patent infringement lawsuits.</p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
CY2022 WDDD Number Of Patents
NumberOfPatents
9 interger
CY2022 WDDD Patent Number One
PatentNumberOne
6219045 interger
CY2022 WDDD Patent Number Two
PatentNumberTwo
7181690 interger
CY2022 WDDD Patent Number Three
PatentNumberThree
7493558 interger
CY2022 WDDD Patent Number Four
PatentNumberFour
7945856 interger
CY2022 WDDD Patent Number Five
PatentNumberFive
8082501 interger
CY2022 WDDD Patent Number Six
PatentNumberSix
8145998 interger
CY2022 WDDD Patent Number Seven
PatentNumberSeven
8161383 interger
CY2022 WDDD Patent Number Eight
PatentNumberEight
8407592 interger
CY2011Q1 WDDD Retained Shares
RetainedShares
5936115 shares
CY2022 WDDD Realized Gain Loss On Marketable Securities Cost Method Investments And Other Investments1
RealizedGainLossOnMarketableSecuritiesCostMethodInvestmentsAndOtherInvestments1
793391 usd
CY2022 us-gaap Sale Of Stock Number Of Shares Issued In Transaction
SaleOfStockNumberOfSharesIssuedInTransaction
1200000 shares
CY2022Q4 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
0.66
CY2021 WDDD Realized Gain Loss On Marketable Securities Cost Method Investments And Other Investments1
RealizedGainLossOnMarketableSecuritiesCostMethodInvestmentsAndOtherInvestments1
1006588 usd
CY2021 us-gaap Sale Of Stock Number Of Shares Issued In Transaction
SaleOfStockNumberOfSharesIssuedInTransaction
1245000 shares
CY2020 us-gaap Sale Of Stock Number Of Shares Issued In Transaction
SaleOfStockNumberOfSharesIssuedInTransaction
100000 shares
CY2021Q4 us-gaap Sale Of Stock Price Per Share
SaleOfStockPricePerShare
0.79
CY2022Q4 WDDD Retained Shares Own
RetainedSharesOwn
550000 shares
CY2022 WDDD Retained Shares Own Value
RetainedSharesOwnValue
0 usd
CY2001Q2 WDDD Accounts Payable And Accrued Liabilities Fair Value Disclosur1e
AccountsPayableAndAccruedLiabilitiesFairValueDisclosur1e
53688 usd
CY2001Q2 us-gaap Litigation Reserve Noncurrent
LitigationReserveNoncurrent
205000 usd
CY2022Q4 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
1305009 usd
CY2022Q1 us-gaap Legal Fees
LegalFees
17780 usd
CY2022Q4 us-gaap Other Accrued Liabilities Noncurrent
OtherAccruedLiabilitiesNoncurrent
3572 usd
CY2022 WDDD Convertible Note Receivable Related Party
ConvertibleNoteReceivableRelatedParty
<p id="xdx_808_ecustom--ConvertibleNoteReceivableRelatedParty_zd4LgUOHjIRl" style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NOTE 11 – <span id="xdx_820_zYkM9ZAugpK5">CONVERTIBLE NOTE RECEIVABLE – RELATED PARTY</span></b></p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company made an investment in the form of a convertible note in the amount of $<span id="xdx_900_eus-gaap--DebtInstrumentCarryingAmount_iI_c20221231_zMOlceHPXIlg" title="Convertible note amount">200,000</span> to Canadian American Standard Hemp (CASH). The convertible note has a <span id="xdx_90B_eus-gaap--InvestmentInterestRate_iI_c20221231_zpHKAagbaKWc" title="Convertible note interest rate">7% </span>annual interest rate and matures in <span id="xdx_908_ecustom--MaturityTerms_uYears_c20220101__20221231_zz2YD3YFzYw" title="Convertible note maturity">2</span> years. Interest and principle is payable at maturity. The note can be converted at any time, either all or part of the amount due can be converted into the borrower’s equity. During the year ended December 31, 2020, CASH merged with Real Brands, Inc. The note was amended with a new maturity date of October 15, 2023. All other terms remained the same. As consideration for the extension, the Company received <span id="xdx_903_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_dc_c20221231_zXe6NBn0o1De" title="Warrants for extension on note">one </span>million warrants to purchase Real Brands, Inc. common stock at <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20221231_zEiurMu4pco" title="Price per share">$0.05 </span>per share. The convertible note and accrued interest of <span id="xdx_90E_eus-gaap--InterestReceivableNoncurrent_iI_c20221231_zeCiy2L4WVEd" title="Convertible note and interest converted">$31,461 </span>can be converted into <span id="xdx_905_eus-gaap--ConversionOfStockSharesConverted1_c20220101__20221231_z1rnHB0fkZah" title="Number of shares per conversion">28,438,561 </span>shares of Real Brands common stock at a conversion price of <span id="xdx_902_eus-gaap--CommonStockConvertibleConversionPriceDecrease_c20220101__20221231_zTbiNeDEn1T5" title="Conversion price per share note conversion">$0.008139</span>. If converted into common stock, the Company would own approximately <span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_c20221231_zDCcoewacitc">1% </span>of Real Brands Inc. Messrs. Kidrin, Toboroff and Christos are Directors of Real Brands and Mr. Kidrin is the CEO and Mr. Ryan is the CFO of Real Brands.<b>  </b>Due to doubts about the collectability and the declining stock price of Real Brands Inc., the Company elected to impair the asset and recognize a loss on impairment of <span id="xdx_90F_eus-gaap--CertainLoansAcquiredInTransferAccountedForAsDebtSecuritiesOtherthanTemporaryImpairmentChargesCreditLoss_c20220101__20221231_zrd1yBmAkaNa" title="Loss on impairment">$231,462</span>.</p> <p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
CY2022Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
200000 usd
CY2022Q4 us-gaap Investment Interest Rate
InvestmentInterestRate
0.07 pure
CY2022 WDDD Maturity Terms
MaturityTerms
2
CY2022Q4 us-gaap Class Of Warrant Or Right Number Of Securities Called By Warrants Or Rights
ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights
1 shares
CY2022Q4 us-gaap Class Of Warrant Or Right Exercise Price Of Warrants Or Rights1
ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1
0.05
CY2022Q4 us-gaap Interest Receivable Noncurrent
InterestReceivableNoncurrent
31461 usd
CY2022 us-gaap Conversion Of Stock Shares Converted1
ConversionOfStockSharesConverted1
28438561 shares
CY2022 us-gaap Common Stock Convertible Conversion Price Decrease
CommonStockConvertibleConversionPriceDecrease
0.008139
CY2022Q4 us-gaap Minority Interest Ownership Percentage By Noncontrolling Owners
MinorityInterestOwnershipPercentageByNoncontrollingOwners
0.01 pure
CY2022 us-gaap Certain Loans Acquired In Transfer Accounted For As Debt Securities Otherthan Temporary Impairment Charges Credit Loss
CertainLoansAcquiredInTransferAccountedForAsDebtSecuritiesOtherthanTemporaryImpairmentChargesCreditLoss
231462 usd
CY2022 us-gaap Nondebtor Reorganization Items Legal And Advisory Professional Fees
NondebtorReorganizationItemsLegalAndAdvisoryProfessionalFees
8222 usd

Files In Submission

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