CMGR Clubhouse Media Group Inc (PK)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended June 30, 2024

 

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

 

For the transition period from ______________ to _____________

 

Commission file number: 333-140645

 

Clubhouse Media Group, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada		99-0364697
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
3651 Lindell Road, D517 Las Vegas, Nevada		89103
(Address of principal executive offices)		(Zip Code)

 

(702) 479-3016

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

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

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

 

Indicate by check mark whether the registrant (1) has filed reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

 

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

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

As of August 10, 2024, there were 16,372,179,486 shares of common stock, par value $0.000001 per share, of the registrant issued and outstanding.

 

 

 

FORM 10-Q

CLUBHOUSE MEDIA GROUP, INC.

INDEX

 

	Page
PART I. Financial Information	3
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023	3
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)	4
Consolidated Statement of Stockholders’ Equity (Deficit) for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)	5
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited)	6
Consolidated Notes to Unaudited Financial Statements as of June 30, 2024	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3. Quantitative and Qualitative Disclosures About Market Risk	46
Item 4. Controls and Procedures	46
PART II. Other Information	47
Item 1. Legal Proceedings	47
Item 1A. Risk Factors	47
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3. Defaults Upon Senior Securities	47
Item 4. Mine Safety Disclosures	47
Item 5. Other Information	47
Item 6. Exhibits	48

 

 

PART I. FINANCIAL INFORMATION

 

Clubhouse Media Group, Inc.

Consolidated Balance Sheets

 

		As of June 30, 2024				As of December 31, 2023
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	89,417			$	125,207
Accounts receivable, net			1,960				14,848
Discontinued operations - current			81,307				199,619
Total current assets			172,684				339,674
Intangibles			404,761				445,582
Discontinued operations - long term			12,861				16,707
Total assets		$	590,306			$	801,963
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable and accrued liabilities		$	2,629,474			$	2,127,857
Convertible notes payable, net			4,162,778				4,162,778
Shares to be issued			468,042				318,042
Derivative liability			2,175,018				873,913
Discontinued operations - current			570,789				510,173
Total current liabilities			10,006,101				7,992,763
Total liabilities			10,006,101				7,992,763
Commitments and contingencies			-				-
Stockholders’ equity (deficit):
Preferred stock, par value $0.001, authorized 50,000,000 shares; 1 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively			-				-
Common stock, par value $0.000001, authorized 25,000,000,000 shares; 16,372,179,486 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively			16,373				16,373
Additional paid-in capital			27,662,827				27,662,827
Accumulated deficit			(37,410,841	)			(35,184,891	)
Total Clubhouse Media stockholders’ equity (deficit)			(9,731,641	)			(7,505,691	)
Non-controlling interest			315,846				314,891
Total stockholders’ deficit			(9,415,795	)			(7,190,800	)
Total liabilities and stockholders’ equity (deficit)		$	590,306			$	801,963

 

See Accompanying Notes to Consolidated Financial Statements.

 

 

Clubhouse Media Group, Inc.

Consolidated Statements of Operations

 

		For the Three Months Ended June 30, 2024				For the Three Months Ended June 30, 2023				For the Six Months Ended June 30, 2024				For the Six Months Ended June 30, 2023
										(Unaudited)				(Unaudited)
Total revenue, net		$	417,403			$	347,474			$	818,949			$	699,251
Cost of sales			315,079				218,004				588,325				436,892
Gross profit			102,324				129,470				230,624				262,359
Operating expenses:
Advertising expenses			1,196				9,131				3,887				24,174
Selling, general, and administrative			110,201				117,049				198,238				273,799
Salaries & wages			230,712				339,233				462,345				461,130
Professional and consultant fees			10,095				44,005				92,837				73,931
Total operating expenses			352,204				509,418				757,307				833,034
Operating Income (Loss)			(249,880	)			(379,948	)			(526,683	)			(570,675	)
Other (income) expenses:
Interest expense, net			114,920				200,026				301,732				371,762
Amortization of debt discounts, net			-				13,153				-				140,144
Other (income) expense, net			-				(1,731	)			-				(15,268	)
Gain related to debt activities			71,772				-				(77	)			-
Change in fair value of derivative liability			(56,279	)			(245,343	)			1,301,105				1,137,479
Total other (income) expenses			130,413				(33,895	)			1,602,760				1,634,117
Income (Loss) before income taxes			(380,293	)			(346,053	)			(2,129,443	)			(2,204,792	)
Income tax (benefit) expense			-				-				-				-
Net income (loss) from continuing operations			(380,293	)			(346,053	)			(2,129,443	)			(2,204,792	)
Net income (loss) from discontinued operations - non-controlling interest			(278	)			(12,158	)			955				(156,277	)
Net income (loss) from discontinued operations			(86,314	)			(13,711	)			(96,507	)			(233,172	)
Net Income (Loss) from shareholders		$	(466,607	)		$	(359,764	)		$	(2,225,950	)		$	(2,437,964	)
Basic weighted average shares outstanding			16,372,179,486				8,480,503,383				16,372,179,486				8,109,652,138
Diluted weighted average shares outstanding			16,372,179,486				8,480,503,383				16,372,179,486				8,109,652,138
Basic - net loss from continuing operations per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Diluted - net loss from continuing operations per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Basic - net loss from discontinued operations per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Diluted - net loss from discontinued operations per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Basic - net loss per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Diluted - net loss per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)

 

See Accompanying Notes to Consolidated Financial Statements.

 

 

Clubhouse Media Group, Inc.

Consolidated Statements of Stockholders’ Equity (Deficit)

 

		Preferred Stock								Common Stock																Total
		50,000,000 shares authorized								25,000,000,000 shares authorized																Clubhouse Media
		Shares				Par Value $0.001				Shares				Par Value $0.000001				Additional Paid in				Accumulated				Stockholders’ Equity				Non-controlling				Total Equity
		Issued				per share				Issued				per share				Capital				Deficit				(Deficit)				Interest				(Deficit)
Balance, December 31, 2022			1			$	-				6,830,378,163			$	6,831			$	24,744,738			$	(32,814,971	)		$	(8,063,402	)		$	385,166			$	(7,678,236	)
Reclass of derivative liability on conversion			-				-				-				-				189,352				-				189,352				-				189,352
Conversion of convertible debt			-				-				1,431,944,776				1,432				182,822				-				184,254				-				184,254
Net Income (Loss)							-				-				-				-				(2,078,200	)			(2,078,200	)			(144,119	)			(2,222,319	)
Balance, March 31, 2023 (Unaudited)			1			$	-				8,262,322,939			$	8,263			$	25,116,912			$	(34,893,171	)		$	(9,767,996	)		$	241,047				(9,526,949	)
Shares issued for debt conversions			-				-				377,620,000				378				33,904				-				34,282				-				34,282
Net Income (Loss)			-				-				-				-								(359,764	)			(359,764	)			(12,158	)			(371,922	)
Balance, June 30, 2023			1			$	-				8,639,942,939			$	8,641			$	25,150,816			$	(35,252,935	)		$	(10,093,478	)		$	228,889			$	(9,864,589	)
Balance, December 31, 2023			1			$	-				16,372,179,486			$	16,373			$	27,662,827			$	(35,184,891	)		$	(7,505,691	)		$	314,891			$	(7,190,800	)
Net Income (Loss)							-				-				-				-				(1,759,343	)			(1,759,343	)			1,233				(1,758,110	)
Balance, March 31, 2024 (Unaudited)			1			$	-				16,372,179,486			$	16,373			$	27,662,827			$	(36,944,234	)		$	(9,265,034	)		$	316,124				(8,948,910	)
Balance			1			$	-				16,372,179,486			$	16,373			$	27,662,827			$	(36,944,234	)		$	(9,265,034	)		$	316,124				(8,948,910	)
Net Income (Loss)			-				-				-				-				-				(466,607	)			(466,607	)			(278	)			(466,885	)
Balance, June 30, 2024			1			$	-				16,372,179,486			$	16,373			$	27,662,827			$	(37,410,841	)		$	(9,731,641	)		$	315,846			$	(9,415,795	)
Balance			1			$	-				16,372,179,486			$	16,373			$	27,662,827			$	(37,410,841	)		$	(9,731,641	)		$	315,846			$	(9,415,795	)

 

See Accompanying Notes to Consolidated Financial Statements.

 

 

Clubhouse Media Group, Inc.

Consolidated Statements of Cash Flow

 

		For the Six Months Ended June 30, 2024				For the Six Months Ended June 30, 2023
		(Unaudited)				(Unaudited)
Cash flows from operating activities:
Net income (loss) from continuing operations		$	(2,129,443	)		$	(2,204,792	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization			65,981				61,644
Interest expense - amortization of debt discounts			-				140,114
Stock compensation expense			150,000				150,000
Change in fair value of derivative liability			1,301,105				1,137,479
Gain related to debt activities			(77	)			(15,268	)
Net changes in operating assets & liabilities:
Accounts receivable			4,889				11,707
Accounts payable, accrued liabilities, due to affiliates, and other long-term liabilities			503,926				720,325
Net cash used in operating activities from continuing operations			(103,619	)			1,209
Net cash (used in ) and provided by operating activities from discontinued operations			(26,011	)			(258,074	)
Net cash used in operating activities			(129,630	)			(256,865	)
Cash flows from investing activities:
Purchases of intangible assets			(25,160	)			(62,825	)
Net cash used in investing activities from continuing operations			(25,160	)			(62,825	)
Net cash used in investing activities from discontinued operations			-				-
Net cash used in investing activities			(25,160	)			(62,825	)
Cash flows from financing activities:
Borrowings from related parties			119,000				1,060,000
Repayment to related party convertible notes payable			-				(396,667	)
Repayment to convertible notes payable			-				(266,938	)
Net cash provided by financing activities from continuing operations			119,000				396,395
Net cash provided by financing activities from discontinued operations-RP			-				-
Net cash provided by financing			119,000				396,395
Net increase in cash and cash equivalents			(35,790	)			76,705
Cash and cash equivalents at beginning of period			125,207				57,713
Cash and cash equivalents at end of period		$	89,417			$	134,418
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest		$	-			$	-
Income taxes		$	-			$	-
Supplemental disclosure of non-cash investing and financing Activities:
Shares issued for conversion from convertible note payable		$	-			$	204,649
Reclass of derivative liability to additional paid in capital		$	-			$	203,239

 

See Accompanying Notes to Consolidated Financial Statements.

 

 

Clubhouse Media Group, Inc.

Notes to the Consolidated Financial Statements

June 30, 2024 and 2023

 

NOTE 1 - ORGANIZATION AND OPERATIONS

 

Clubhouse Media Group, Inc. (formerly known as Tongji Healthcare Group, Inc. or the “Company”) was incorporated under the laws of the State of Nevada on December 19, 2006 by Nanning Tongji Hospital, Inc. (“NTH”). On December 20, 2006, Tongji, Inc., a wholly owned subsidiary of the Company, was incorporated in the State of Colorado. Tongji, Inc. was later dissolved on March 25, 2011.

 

NTH was established in Nanning in the province of Guangxi of the People’s Republic of China (“PRC” or “China”) by Nanning Tongji Medical Co. Ltd. and an individual on October 30, 2003.

 

NTH is a designated hospital for medical insurance in the city of Nanning and Guangxi province. NTH specializes in the areas of internal medicine, surgery, gynecology, pediatrics, emergency medicine, ophthalmology, medical cosmetology, rehabilitation, dermatology, otolaryngology, traditional Chinese medicine, medical imaging, anesthesia, acupuncture, physical therapy, health examination, and prevention.

 

On December 27, 2006, Tongji, Inc. acquired 100% of the equity in NTH pursuant to an Agreement and Plan of Merger, pursuant to which NTH became a wholly owned subsidiary of Tongji, Inc. Pursuant to the Agreement and Plan of Merger, the Company issued 15,652,557 shares of common stock to the stockholders of NTH in exchange for 100% of the issued and outstanding shares of common stock of NTH. The acquisition of NTH was accounted for as a reverse acquisition under the purchase method of accounting since the stockholders of NTH obtained control of the entity. Accordingly, the reorganization of the two companies was recorded as a recapitalization of NTH, with NTH being treated as the continuing operating entity. The Company, through NTH, thereafter operated the hospital until the Company eventually sold NTH, as described below.

 

Effective December 31, 2017, under the terms of a Bill of Sale, the Company agreed to sell, transfer convey and assign forever all of its rights, title and interest in its equity ownership interest in NTH to Placer Petroleum Co., LLC. Pursuant to the Bill of Sale, consideration for this sale, transfer conveyance and assignment is Placer Petroleum Co., LLC assuming all assets and liabilities of NTH as of December 31, 2017. Thereafter, the Company had minimal operations.

 

On May 20, 2019, pursuant to Case Number A-19-793075-P, Nevada’s 8th Judicial District, Business Court entered an Order Granting Application of Joseph Arcaro as Custodian of Tongji Healthcare Group, Inc. pursuant to Nevada Revised Statutes (“NRS”) 78.347(1)(b), pursuant to which Mr. Arcaro was appointed custodian of the Company and given authority to reinstate the Company with the State of Nevada under NRS 78.347.

 

On May 23, 2019, Mr. Arcaro filed a Certificate of Reinstatement of the Company with the Secretary of State of the State of Nevada. In addition, on May 23, 2019, Mr. Arcaro filed an Annual List of the Company with the Secretary of State of the State of Nevada, designating himself as President, Secretary, Treasurer and Director of the Company for the filing period of 2017 to 2019.

 

On May 29, 2020, Mr. Arcaro, through his ownership of Algonquin Partners Inc. (“Algonquin”), owner 65% of the Company’s common stock, entered into a Stock Purchase Agreement by and among West of Hudson Group, Inc. (“WOHG”), the Company, Algonquin, and Mr. Arcaro. The Stock Purchase Agreement, as subsequently amended, is referred to herein as the “SPA.” Pursuant to the terms of the SPA, WOHG agreed to purchase, and Algonquin agreed to sell 30,000,000 shares of the Company’s common stock in exchange for payment by WOHG to Algonquin of $240,000 (the “Stock Purchase”). The Stock Purchase closed on June 18, 2020, resulting in a change of control of the Company. Mr. Arcaro resigned from any and all officer and director positions with the Company.

 

On July 7, 2020, the Company increased the authorized capital stock of the Company to 550,000,000, comprised of 500,000,000 shares of common stock, par value $0.001, and 50,000,000 shares of preferred stock, par value $0.001.

 

The Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada on June 13, 2022 for the purpose of amending the Articles of Incorporation of the Company to reduce the par value of the common stock of the Company, par value $0.001 per share, from $0.001 to $0.000001.

 

7

 

West of Hudson Group, Inc. (“WOHG”) was incorporated in the State of Delaware on May 19, 2020 and owned 100% of WOH Brands, LLC (“WOH”), Oopsie Daisy Swimwear, LLC (“Oopsie”), and DAK Brands, LLC (“DAK”), which were incorporated in the State of Delaware on May 13, 2020.

 

Doiyen LLC (“Doiyen”), formerly known as WHP Entertainment LLC was incorporated in the State of California on January 2, 2020 and renamed to Doiyen LLC in July 7, 2020 and Doiyen is 100% owned by WOHG.

 

The Company is an entertainment company engaged in the sale of own brand products, e-commerce platform advertising, and promotion for other companies on their social media accounts. As of December 31, 2023, the Company changed focuses from brand deal to e-commerce platform as such Doiyen LLC is included within discontinued operations.

 

On November 12, 2020, the Company and WOHG entered into the Merger Agreement, and WOHG thereafter became a wholly owned subsidiary of the Company. WOHG was determined to be the accounting acquirer in the Merger based upon the terms of other factors, including: (1) the security holders owned approximately 50.54% of the Company’s issued and outstanding common stock as of immediately after the closing of the Merger. Following the completion of the Merger, the Company changed its name from Tongji Healthcare Group, Inc. to Clubhouse Media Group, Inc. The Merger was accounted for as a reverse-merger and recapitalization in accordance with accounting principles generally accepted in the United States of America (“GAAP”). WOHG was the acquirer for financial reporting purposes and Clubhouse Media Group, Inc. was the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements prior to the Merger will be those of WOHG and will be recorded at the historical cost basis of WOHG. The consolidated financial statements after completion of the Merger include the assets and liabilities of the Company and WOHG, historical operations of WOHG and operations of the Company from the closing date of the Merger. Common stock and the corresponding capital amounts of the Company pre-merger have been retroactively restated as capital stock shares reflecting the exchange ratio in the Merger. This was a common control transaction, so all amounts were based on historical cost and no goodwill was recorded.

 

Since September 2022, the Company launched its own subscription-based site HoneyDrip.com, which provides a digital space for creators to share unique content with their subscribers.

 

The Company has changed focuses from brand deal to focus efforts on Honeydrip platform since December 31, 2023.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented.

 

Principles of Consolidation

 

The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The Company includes within the consolidated financial statements the joint venture, see Note 11, due to ability to exert control over the financial and operating polices which includes ownership of equal to or greater than 50% of the joint venture.

 

Use of Estimates

 

In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, useful life of fixed assets, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, and assumptions used in assessing impairment of long-lived assets. Actual results could differ from those estimates.

 

8

 

Reclassification

 

Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. These reclassifications had no effect on our previously reported results of operations or accumulated deficit.

 

Business Combination

 

The Company applies the provisions of the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date, fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations.

 

Cash and Cash Equivalents

 

Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents are on deposit with financial institutions without any restrictions. The Company maintains its cash with high credit quality financial institutions; at times, such balances with any one financial institution may exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits.

 

Advertising

 

Advertising costs are expensed when incurred and are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations. We incurred advertising expenses of $3,887 and $24,174 for the six months ended June 30, 2024, and 2023, respectively.

 

Accounts Receivable

 

The Company’s accounts receivable arises from providing services. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale.

 

The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Amounts determined to be uncollectible are charged or written-off against the reserve. As of June 30, 2024, and December 31, 2023, there were $0 and $79, respectively, for bad debt allowance for accounts receivable.

 

As of June 30, 2024, and December 31, 2023, there were $2,085 and $2,956, respectively, for bad debt allowance for accounts receivable included with discontinued operations on balance sheets.

 

9

 

Property and equipment, net

 

Plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of property, plant and equipment and are calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:

 

SCHEDULE OF PROPERTY AND EQUIPMENT, NET ESTIMATED USEFUL LIVES

Classification		Useful Life
Equipment		3 years

 

Lease

 

The Company elected to use the short-term exception and does not record assets/liabilities for short term leases as of June 30, 2024 and December 31, 2023.

 

Revenue Recognition

 

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).

 

Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company recognized revenue from providing temporary and permanent staffing solutions and sale of consumer products.

 

Managed Services Revenue

 

The Company generates revenue from its managed services when a marketer (typically a brand, agency, or partner) pays the Company to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).

 

The Company maintains separate arrangements with each marketer and content creator either in the form of a master agreement or terms of service, which specify the terms of the relationship and access to its platforms, or by statement of work, which specifies the price and the services to be performed, along with other terms. The transaction price is determined based on the fixed fee stated in the statement of work and does not contain variable consideration. Marketers who contract with the Company to manage their advertising campaigns or custom content requests may prepay for services or request credit terms. The agreement typically provides for either a non-refundable deposit, or a cancellation fee if the agreement is canceled by the customer prior to completion of services. Billings in advance of completed services are recorded as a contract liability until earned. The Company assesses collectability based on a number of factors, including the creditworthiness of the customer and payment and transaction history.

 

For Managed Services Revenue, the Company enters into an agreement to provide services that may include multiple distinct performance obligations in the form of: (i) an integrated marketing campaign to provide influencer marketing services, which may include the provision of blogs, tweets, photos or videos shared through social network offerings and content promotion, such as click-through advertisements appearing in websites and social media channels; and (ii) custom content items, such as a research or news article, informational material or videos. Marketers typically purchase influencer marketing services for the purpose of providing public awareness or advertising buzz regarding the marketer’s brand and they purchase custom content for internal and external use. The Company may provide one type or a combination of all types of these performance obligations on a statement of work for a lump sum fee. Revenue is accounted for when the performance obligation has been satisfied depending on the type of service provided. The Company views its obligation to deliver influencer marketing services, including management services, as a single performance obligation that is satisfied at the time the customer receives the benefits from the services.

 

10

 

Based on the Company’s evaluations, revenue from Managed Services is reported on a gross basis because the Company has the primary obligation to fulfill the performance obligations and it creates, reviews and controls the services. The Company takes on the risk of payment to any third-party creators and it establishes the contract price directly with its customers based on the services requested in the statement of work. The deferred revenue as of June 30, 2024, and December 31, 2023, was $0 and included with discontinued operations on balance sheets. As of December 31, 2023, the Company has shifted focus from managed services to HoneyDrip.com platform as such managed services is included in discontinued operations on statement of operations.

 

Subscription-Based Revenue

 

The Company recognizes subscription-based revenue through Honeydrip.com, its social media website, which allows customers to visit the creator’s personal page over the contract period without taking possession of the products or deliverables. Customers incur costs on either a subscription or consumption basis. Revenue provided on a subscription basis is recognized ratably over the contract period and revenue provided on a consumption basis is recognized when the subscriber paid and received their access to the content. The Company reported the subscription-based revenue at net basis since the Company is acting as an agent solely arranging for the third-party creator or influencer to provide the services directly to the self-service customer through the platform or by posting the requested content. In April 2022, the Company has determined it will be recognized at gross because they have control of the services before it is transferred to the end customer. The Company provided services like online chat and other services directly with the end customers by their internal team. Also, the Company will establish the price on behalf of the content creators as disclosed in the agreement. The Company has sole power to change the price based on the market. These are good indicators that the Company controls the specified goods or services before it is transferred to the customer.

 

Software Development Costs

 

We apply ASC 350-40, Intangibles—Goodwill and Other—Internal Use Software, in review of certain system projects. These system projects generally relate to software we do not intend to sell or otherwise market. In addition, we apply this guidance to our review of development projects related to software used exclusively for our SaaS subscription offerings. In these reviews, all costs incurred during the preliminary project stages are expensed as incurred. Once the projects have been committed to and it is probable that the projects will meet functional requirements, costs are capitalized. These capitalized software costs are amortized on a project-by-project basis over the expected economic life of the underlying product on a straight-line basis, which is five years. Amortization commences when the software is available for its intended use. Amounts capitalized related to development of internal use software are included in property and equipment, net, on our Consolidated Balance sheets and related depreciation is recorded as a component of amortization of intangible assets and depreciation in our consolidated statements of operations. For the six months ended June 30, 2024, and 2023, we capitalized $21,335 and $62,825, respectively, related to internal use software and recorded $66,247 and $61,644 in related amortization expense, respectively. Unamortized costs of capitalized internal use software totaled $404,495 and $445,582 as of June 30, 2024, and December 31, 2023, respectively. As of December 31, 2023, the Company fully impaired developed technology-magiclytics.

 

Goodwill Impairment

 

We test goodwill at least annually for impairment at the reporting unit level. We recognize an impairment charge if the carrying amount of a reporting unit exceeds its fair value. When a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained.

 

For other intangible assets that are not deemed indefinite-lived, cost is generally amortized on a straight-line basis over the asset’s estimated economic life, except for individually significant customer-related intangible assets that are amortized in relation to total related sales. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to estimated fair value based on either discounted cash flows or appraised values. The Company impaired $0 and $0 of goodwill for the six months ended June 30, 2024 and 2023, respectively.

 

11

 

Impairment of Long-Lived Assets

 

Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of and for the six months ended June 30, 2024, and 2023, there were no impairment loss of its long-lived assets.

 

Income Taxes

 

The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized.

 

The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold is recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold is derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense.

 

Commitments and Contingencies

 

The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.

 

In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

 

If the assessment of a contingency indicates it is probable a material loss was incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

 

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

 

12

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to credit risk consist primarily of accounts receivable. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

 

Basic Income (Loss) Per Share

 

Under the provisions of ASC 260, “Earnings per Share,” basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. Potential common shares consist of the convertible promissory notes payable as of June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, there were 7,435,097,663 and 8,865,097,663 potential shares issuable upon conversion of convertible notes payable. As of June 30, 2024 and 2023, there were approximately 165,077 potential shares issuable upon conversion of warrants. All potential shares from convertible notes payable and warrants were considered anti-dilutive as of June 30, 2024 and December 31, 2023.

 

The table below presents the computation of basic and diluted earnings per share for the three months ended June 30, 2024 and 2023:

 

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNING PER SHARE

		For the three months ended June 30, 2024				For the three months ended June 30, 2023
		(Unaudited)				(Unaudited)
Numerator:
Net income (loss) from continuing operations		$	(380,293	)		$	(346,053	)
Denominator:
Weighted average common shares outstanding—basic			16,372,179,486				8,480,503,383
Dilutive common stock equivalents			-				-
Weighted average common shares outstanding—diluted			16,372,179,486				8,480,503,383
Net loss per share:
Basic		$	(0.00	)		$	(0.00	)
Diluted		$	(0.00	)		$	(0.00	)

 

The table below presents the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:

 

		For the six months ended June 30, 2024				For the six months ended June 30, 2023
		(Unaudited)				(Unaudited)
Numerator:
Net income (loss) from continuing operations		$	(2,129,443	)		$	(2,204,792	)
Denominator:
Weighted average common shares outstanding—basic			16,372,179,486				8,109,652,138
Dilutive common stock equivalents			-				-
Weighted average common shares outstanding—diluted			16,372,179,486				8,109,652,138
Net loss per share:
Basic		$	(0.00	)		$	(0.00	)
Diluted		$	(0.00	)		$	(0.00	)

 

13

 

Stock based Compensation

 

Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award) under ASC 718. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.

 

Fair Value of Financial Instruments

 

FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.

 

Fair Value Measurements

 

The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:

 

	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Cash, accounts receivable, accounts payable, and accrued expenses and deferred revenue – The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.

 

Convertible notes payable – Convertible promissory notes payable are recorded at amortized cost. The carrying amount approximates their fair value.

 

The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities as their fair values were determined by using the binomial option-pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.

 

The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2024 and December 31, 2023.

 

SCHEDULE OF ASSETS AND LIABILITIES UNDER FAIR VALUE HIERARCHY

		Fair Value				Fair Value Measurements at
		As of				June 30, 2024
Description		June 30, 2024				Using Fair Value Hierarchy
						Level 1				Level 2				Level 3
Derivative liability		$	2,175,018			$	-			$	-			$	2,175,018
Total		$	2,175,018			$	-			$	-			$	2,175,018

 

14

 

		Fair Value				Fair Value Measurements at
		As of				December 31, 2023
Description		December 31, 2023				Using Fair Value Hierarchy
						Level 1				Level 2				Level 3
Derivative liability		$	873,913			$	-			$	-			$	873,913
Total		$	873,913			$	-			$	-			$	873,913

 

Derivative instruments

 

The fair value of derivative instruments is recorded and shown separately under liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under other (income) expense.

 

Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives under ASC 815. 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 in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses binomial 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.

 

In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Topic 815): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 requires companies to measure conversion of debt into equity that contain derivatives with difference as a gain or loss. ASU 2020-06 is effective for fiscal years beginning after December 15, 2022, including those interim periods within those fiscal years. The Company adopted and follows ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity as of December 31, 2023.

 

Beneficial Conversion Features

 

If a conversion features did not meet the definition of derivative liability under ASC 815, the Company evaluates the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the note. If the effective conversion price was less than the market value of underlying common stock at the inception of the convertible promissory note, the Company recorded the difference as debt discounts and amortized over the life of the notes using the effective interest method.

 

Related Parties

 

The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 related parties include:

 

a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825– 10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

15

 

New Accounting Pronouncements

 

Management does not believe that any recently issued and not adopted and/or effective, accounting pronouncements would have a material effect on the accompanying financial statements.

 

NOTE 3 – GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

 

As reflected in the accompanying financial statements, the Company had a net loss of $(2,225,950) for the six months ended June 30, 2024, negative working capital of $(9,833,417) as of June 30, 2024, and stockholder’s deficit of $(9,415,795). These factors among others raise substantial doubt about the Company’s ability to continue as a going concern.

 

While the Company is attempting to generate additional revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues.

 

The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

NOTE 4 – PROPERTY AND EQUIPMENT

 

Fixed assets, net consisted of the following:

 

SCHEDULE OF FIXED ASSET, NET

		June 30, 2024				December 31, 2023				Estimated Useful Life
Equipment		$	118,638			$	118,638			3 years
Less: accumulated depreciation and amortization			(105,777	)			(101,931	)
Property, plant, and equipment, net,		$	12,861			$	16,707

 

The above fixed assets are included in discontinued operations on the balance sheets. Depreciation expenses were $3,701 and $5,991 for the three months ended June 30, 2024 and 2023, respectively, and included with discontinued operations on the statement of operations. Depreciation expenses were $3,847 and $14,921 for the six months ended June 30, 2024 and 2023, respectively, and included with discontinued operations on the statement of operations.

 

NOTE 5 – INTANGIBLES

 

As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $404,761 and $445,582 from and after the acquisition of Magiclytics in February 2021. It is a platform that is internally developed for revenue prediction from influencer collaboration and our digital platform Honeydrip.com.

 

16

 

The following table sets forth the Company’s infinite and finite-lived intangible assets resulting from business acquisitions and other purchases, which continue to be amortized:

 

SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS ACQUIRED AS PART OF BUSINESS COMBINATION

		Weighted				June 30, 2024												December 31, 2023
		Average Useful Life (in Years)				Gross Carrying Amount				Accumulated Amortization				Net Carrying Amount				Gross Carrying Value				Accumulated Amortization				Net Carrying Amount
Developed technology - Magiclytics			5			$	672,903			$	268,142			$	404,761			$	647,743			$	202,161			$	445,582
Developed technology - Magiclytics			-				-				-				-				-				-				-
						$	672,903			$	268,142			$	404,761			$	647,743			$	202,161			$	445,582

 

Amortization expenses were $33,391 and $31,502 for the three months ended June 30, 2024 and 2023, respectively. Amortization expenses were $65,981 and $61,643 for the three months ended June 30, 2024 and 2023, respectively.

 

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LIABILITES

 

Accrued liabilities at June 30, 2024 and 2022 consist of the following:

 

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

		June 30, 2024				December 31, 2023
Accounts payable		$	10,051			$	9,747
Accrued payroll			570,000				370,000
Accrued interest			1,928,323				1,626,590
Other			121,100				121,520
Accounts payable and accrued liabilities		$	2,629,474			$	2,127,857

 

NOTE 7 – CONVERTIBLE NOTES PAYABLE

 

Convertible Promissory Note – GS Capital Partners #2

 

On February 19, 2021, the Company entered into another securities purchase agreement with GS Capital (the “GS Capital #2”), pursuant to which, on same date, the Company issued a convertible promissory note (the “GS Capital #2 Note”) to GS Capital the aggregate principal amount of $577,778 for a purchase price of $520,000, reflecting a $57,778 original issue discount, and in connection therewith, sold to GS Capital 100,000 shares of Company’s common stock, par value $0.001 per share at a purchase price of $100, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $10,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.

 

The GS Capital #2 Note has a maturity date of February 19, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital #2 Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

17

 

The GS Capital #2 Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the Securities and Exchange Commission (“SEC”) qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act of 1933, as amended (the “Regulation A Offering”). At such time, the GS Capital #2 Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

The $57,778 original issue discounts, the fair value of 100,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discounts at the inception date of this convertible promissory note were $577,778.

 

Convertible Promissory Note – New GS Note #2

 

On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to cancel the conversion exercised in the quarter ended June 30, 2021.

 

On June 29, 2022, the “Company entered into an Exchange Agreement (the “Exchange Note”) with GS Capital. The Exchange Note amended and restated in its entirety the previous Note Purchase Agreement between the same parties.

The Exchange Note replaces the Note Purchase Agreement in its entirety, which was a promissory note carrying an outstanding amount of $577,778. The Exchange Note is thus a new note in the amount of $635,563.48, with a conversion price equal to 85% of the closing per share trading price of the Company’s shares of common stock, $0.000001 par value per share (“Common Stock”) on the last trading day prior to the delivery of the notice of conversion, as reported on the National Quotations Bureau OTC Market exchange which the Company’s shares are traded.

 

The change in conversion features were recorded as loss on debt extinguishment of $188,771 and recognition of derivative liability of $416,588 as of June 30, 2022.

 

GS Capital converted $20,000 of principal amount and $4,662 accrued interest to 296,380,352 common shares in the quarter ended December 31, 2023. It further converted $421,063 of the principal amount and $4,690 accrued interest to 378,633,891 common shares in the quarter ended September 30, 2022. It further converted $65,000 of principal to 481,221,646 common shares in the first quarter of 2023. The balance of the GS Capital #2 Note as of June 30, 2024, was $0.

 

Convertible Promissory Note – GS Capital Partners #3

 

On March 16, 2022, the Company entered into another securities purchase agreement with GS Capital (the “GS Capital #3”), pursuant to which, on same date, the Company issued a convertible promissory note (the “GS Capital #3 Note”) to GS Capital the aggregate principal amount of $577,778 for a purchase price of $520,000, reflecting a $57,778 original issue discount, and in connection therewith, sold to GS Capital 100,000 shares of Company’s common stock, par value $0.000001 per share at a purchase price of $100, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $10,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.

 

The GS Capital #3 Note has a maturity date of March 22, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital #3 Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

The GS Capital #3 Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned Regulation A Offering. At such time, the GS Capital #3 Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

18

 

The $57,778 original issue discounts, the fair value of 100,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discounts at the inception date of this convertible promissory note were $577,778.

 

On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to September 22, 2022.

 

The balance of the GS Capital #3 Note as of June 30, 2024 and December 31, 2023 was $577,778 and $577,778, respectively. The Company is currently in default of the GS Capital #3 Note.

 

Convertible Promissory Note – GS Capital Partners #4

 

On April 1, 2021, the Company entered into another securities purchase agreement with GS Capital (the “GS Capital #4”), pursuant to which, on same date, the Company issued a convertible promissory note to GS Capital the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount, and in connection therewith, sold to GS Capital 45,000 shares of Company’s common stock, par value $0.001 per share at a purchase price of $45, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $10,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.

 

The GS Capital Note #4 has a maturity date of April 1, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

The GS Capital Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

The $50,000 original issue discounts, the fair value of 45,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000.

 

On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to October 1, 2022.

 

The balance of the GS Capital Note #4 as of June 30, 2024 and December 31, 2023 was $550,000 and $550,000, respectively. The Company is currently in default of the GS Capital #4 Note.

 

Convertible Promissory Note – GS Capital Partners #5

 

On April 29, 2021, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with GS Capital, pursuant to which, on same date, the Company issued a convertible promissory note to GS Capital in the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount (the “GS Capital Note #5”) and, in connection therewith, sold to GS Capital 125,000 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at a purchase price of $125, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $5,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.

 

19

 

The April 2021 GS Capital Note #5 has a maturity date of April 29, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital Note #5, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

The GS Capital Note #5 (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note #5 (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

The $50,000 original issue discounts, the fair value of 125,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000.

 

On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to October 29, 2022.

 

The balance of the GS Capital Note #5 as of June 30, 2024 and December 31, 2023 was $550,000 and $550,000, respectively.

 

Convertible Promissory Note – GS Capital Partners #6

 

On June 3, 2021, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with GS Capital, pursuant to which, on same date, the Company issued a convertible promissory note to GS Capital in the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount (the “GS Capital Note #6”) and, in connection therewith, sold to GS Capital 85,000 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at a purchase price of $85, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $5,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.

 

The GS Capital Note #6 has a maturity date of June 3, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital Note #6, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

The GS Capital Note #6 (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note #6 (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

The $50,000 original issue discounts, the fair value of 85,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000.

 

On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to December 3, 2022.

 

20

 

The balance of the GS Capital Note #6 as of June 30, 2024 and December 31, 2023 was $550,000 and $550,000, respectively. The Company is currently in default of the GS Capital #6 Note.

 

Convertible Promissory Note – Eagle Equities LLC

 

On April 13, 2021, the Company entered into a securities purchase agreement (the “Eagle SPA”) with Eagle Equities LLC (“Eagle Equities”), pursuant to which, on same date, the Company issued a convertible promissory note to Eagle Equities in the aggregate principal amount of $1,100,000 for a purchase price of $1,000,000, reflecting a $100,000 original issue discount (the “Eagle Equities Note”), and, in connection therewith, sold to Eagle Equities 165,000 shares of Company’s common stock, par value of $0.001 per share (the “Company Common Stock”) at a purchase price of $165.00, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed Eagle Equities the sum of $10,000 for Eagle Equities’ costs in completing the transaction, which amount Eagle Equities withheld from the total purchase price paid to the Company.

 

The Eagle Equities Note has a maturity date of April 13, 2022 and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than upon the circumstances set forth in the Eagle Equities Note – specifically, if (i) the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act; and (ii) the Company receives $3,500,000 in net proceeds from such Regulation A Offering, then Company must repay the principal amount and any accrued and unpaid interest on the Eagle Equities Note within three (3) business days from the date of such occurrence. The Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

The Eagle Equities Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at Eagle Equities’ election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the Eagle Equities Note (and the principal amount and any accrued and unpaid interest) will be convertible in restricted shares of Company Common Stock at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by Eagle Equities on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price. Alternatively, if the SEC has not qualified the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act by October 10, 2021, and Eagle Equities Note has not yet been fully repaid, then Eagle Equities will have the right to convert the Eagle Equities Note (and the principal amount and any accrued and unpaid interest) into restricted shares of Company Common Stock at a conversion price of $6.50 per share (subject to customary adjustments for any stock splits, etc., which occur following April 13, 2021).

 

The $100,000 original issue discounts, the fair value of 165,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $1,100,000.

 

The balance of the Eagle Equities Note as of June 30, 2024 and December 31, 2023 was $1,100,000, respectively. The Company is currently in default of the Eagle Equities Note.

 

Convertible Promissory Note – Chris Etherington

 

On August 27, 2021, the Company entered into a note purchase agreement (the “Chris Etherington Note Purchase Agreement”) with Chris Etherington, with an effective date of August 26, 2021, pursuant to which, on same date, the Company issued a convertible promissory note to Mr. Etherington in the aggregate principal amount of $165,000 for a purchase price of $150,000, reflecting a $15,000 original issue discount (the “Chris Etherington Note”) and, in connection therewith, issued to Mr. Etherington a Warrant to purchase 37,500 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at an exercise price of $2.00 per share, subject to adjustment (the “Chris Etherington Warrant”). In addition, in connection with the Chris Etherington Note Purchase Agreement, the Company entered into a Security Agreement on same date with Mr. Etherington, pursuant to which the Company’s obligations under the Chris Etherington Note were secured by a first priority lien and security interest on all of the assets of the Company (the “Chris Etherington Security Agreement”). While each of the Chris Etherington Warrant, Security Agreement, Note, and Note Purchase Agreement have an effective date and/or effective issue date of August 26, 2021, each was entered into and/or issued on August 27, 2021.

 

21

 

The Chris Etherington Note has a maturity date of August 26, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the Chris Etherington Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

The Chris Etherington Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of Company Common Stock at any time following August 26, 2021, until the note is repaid. The conversion price per share of Common Stock shall initially mean the lesser of (i) $1.00 or (ii) 75% of the lowest daily volume weighted average price of the Common Stock during the 20 Trading Days (as defined in the Chris Etherington Note) immediately preceding the date of the respective conversion. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

The Chris Etherington Note contains customary events of default, including, but not limited to:

 

	●	if the Company fails to pay the then-outstanding principal amount and accrued interest on the Chris Etherington Note on any date any such amounts become due and payable, and any such failure is not cured within three business days of written notice thereof by Mr. Etherington: or
	●	the Company fails to remain compliant with the Depository Trust Company (“DTC”), thus incurring a “chilled” status with DTC; or
	●	any trading suspension is imposed by the SEC under Section 12(j) or Section 12(k) of the Exchange Act; or
	●	the occurrence of any delisting of the Company Common Stock from any securities exchange on which the Company Common Stock is listed or suspension of trading of the Company Common Stock on the OTC Markets.

 

If an event of default has occurred and is continuing, Mr. Etherington may declare all or any portion of the then-outstanding principal amount of the Chris Etherington Note, together with all accrued and unpaid interest thereon, due and payable, and the Chris Etherington Note shall thereupon become immediately due and payable in cash and Mr. Etherington will also have the right to pursue any other remedies that Mr. Etherington may have under applicable law. In the event that any amount due under the Chris Etherington Note is not paid as and when due, such amounts shall accrue interest at the rate of 18% per year, simple interest, non-compounding, until paid.

 

The $15,000 original issue discounts, the fair value of 37,500 warrants issued, and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $165,000. For the excess amount of derivative liability, the Company recorded accretion expense of $160,538 at the inception date of this note.

 

The balance of the Chris Etherington Note as of June 30, 2024 and December 31, 2023 was $165,000, respectively. The Company is currently in default of the Chris Etherington Note.

 

Convertible Promissory Note – Rui Wu

 

On August 27, 2021, the Company entered into a note purchase agreement (the “Rui Wu Note Purchase Agreement”) with Rui Wu, an individual (“Rui Wu”), with an effective date of August 26, 2021, pursuant to which, on same date, the Company issued a convertible promissory note to Rui Wu in the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount (the “Rui Wu Note”) and, in connection therewith, issued to Rui Wu a Warrant to purchase 125,000 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at an exercise price of $2.00 per share, subject to adjustment (the “Rui Wu Warrant”). In addition, in connection with the Rui Wu Note Purchase Agreement, the Company entered into a Security Agreement on same date with Rui Wu, pursuant to which the Company’s obligations under the Rui Wu Note were secured by a first priority lien and security interest on all of the assets of the Company (the “Rui Wu Security Agreement”). While each of the Rui Wu Warrant, Security Agreement, Note, and Note Purchase Agreement have an effective date and/or effective issue date of August 26, 2021, each was entered into and/or issued on August 27, 2021.

 

The Rui Wu Note has a maturity date of August 26, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the Rui Wu Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.

 

22

 

The Rui Wu Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of Company Common Stock at any time following August 26, 2021, until the note is repaid. The conversion price per share of Common Stock shall initially mean the lesser of (i) $1.00 or (ii) 75% of the lowest daily volume weighted average price of the Common Stock during the 20 Trading Days (as defined in the Rui Wu Note) immediately preceding the date of the respective conversion. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.

 

The Rui Wu Note contains customary events of default, including, but not limited to:

 

	●	if the Company fails to pay the then-outstanding principal amount and accrued interest on the Rui Wu Note on any date any such amounts become due and payable, and any such failure is not cured within three business days of written notice thereof by Rui Wu: or
	●	the Company fails to remain compliant with the Depository Trust Company (“DTC”), thus incurring a “chilled” status with DTC; or
	●	any trading suspension is imposed by the SEC under Section 12(j) or Section 12(k) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); or
	●	the occurrence of any delisting of the Company Common Stock from any securities exchange on which the Company Common Stock is listed or suspension of trading of the Company Common Stock on the OTC Markets.

 

If an event of default has occurred and is continuing, Rui Wu may declare all or any portion of the then-outstanding principal amount of the Rui Wu Note, together with all accrued and unpaid interest thereon, due and payable, and the Rui Wu Note shall thereupon become immediately due and payable in cash and Rui Wu will also have the right to pursue any other remedies that Rui Wu may have under applicable law. In the event that any amount due under the Rui Wu Note is not paid as and when due, such amounts shall accrue interest at the rate of 18% per year, simple interest, non-compounding, until paid.

 

The $50,000 original issue discounts, the fair value of 125,000 warrants issued, and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000. For the excess amount of derivative liability, the Company recorded accretion expense of $514,850 at the inception date of this note.

 

The balance of the Riu Wu Note as of June 30, 2024 and December 31, 2023 was $550,000, respectively. The Company is currently in default of the Rui Wu Note.

 

Convertible Note – Fast Capital, LLC

 

On January 13, 2022, the Company entered into a Securities Purchase Agreement, (the “SPA”) dated as of January 10, 2022, by and between the Company and Fast Capital, LLC (the “Buyer”). Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase (the “Purchase”), a 10% convertible note in the aggregate principal amount of $120,000 (the “Note”). The Note has an original issue discount of $10,000, resulting in gross proceeds to the Company of $110,000.

 

The Note bears interest at a rate of 10% per annum and reached maturity on January 10, 2023. The Note may be prepaid or assigned with the following penalties/premiums:

 

SCHEDULE OF PREPAID CONVERTIBLE NOTES PAYABLE

Prepay Date		Prepay Amount
On or before 30 days		115% of principal plus accrued interest
31 – 60 days		120% of principal plus accrued interest
61 – 90 days		125% of principal plus accrued interest
91 – 120 days		130% of principal plus accrued interest
121 – 150 days		135% of principal plus accrued interest
151 – 180 days		140% of principal plus accrued interest

 

The Note may not be prepaid after the 180^th day.

 

23

 

The Buyer has the right from time to time, and at any time after 180 days to convert all or any part of the outstanding and unpaid principal amount of the Note into common stock, subject to a 4.99% equity blocker.

 

The conversion price of the Note equals 70% of the lowest trading price of the Company’s common stock for the 20 prior trading days, including the day upon which a notice of conversion is delivered.

 

The balance of the Fast Capital note as of June 30, 2024 and December 31, 2023 was $120,000 and $120,000, respectively. The Company is currently in default of the Fast Capital Note.

 

Convertible Promissory Note – ONE44 Capital LLC

 

On February 16, 2022, the Company entered into a Securities Purchase Agreement, (the “ONE44 Capital purchase agreement”) dated February 15, 2022, by and between the Company and ONE44 Capital LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $175,500 (the “ONE44 Capital Note”). The ONE44 Capital Note has an original issue discount of $17,500, resulting in gross proceeds to the Company of $158,000.

 

The ONE44 Capital Note bears interest at a rate of 4% per annum and matures on February 16, 2023. Any amount of principal or interest on the Note which is not paid when due will bear interest at a rate of 24% per annum. The Note may not be prepaid in whole or in part except as provided in the Note by way of conversion at the option of the Buyer.

 

The Buyer has the right from time to time, and at any time during the period beginning on the date that is 180 days following February 16, 2022 and ending on the later of (i) February 16, 2023, and (ii) the date of payment of the Default Amount (as defined in the Note), to convert all or any part of the outstanding and unpaid principal amount of the Note into common stock, subject to a 4.99% equity blocker.

 

The conversion price of the ONE44 Capital Note equals the lesser of the Variable Conversion Price (as hereinafter defined) and $1.00. The “Variable Conversion Price” means 65% multiplied by the lowest VWAP (as defined in the Note) for the Company’s common stock during the 3 trading date period ending on the latest complete trading day prior to the conversion date.

 

Since the conversion price is based on 65% of the VWAP during the 3-trading day period immediately prior to the option conversion date, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.

 

The $17,500 original issue discounts, the $8,000 reimbursement and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $148,306.

 

ONE44 Capital LLC converted $45,000 principal to common shares in the quarter ended March 31, 2023.

 

On March 7, 2023, the Company entered into a Debt Repayment and Release Agreement by and between the Company and ONE44 Capital LLC. Pursuant to the terms of the Agreement, the Company agreed to pay to ONE44 $88,738 as full and complete payment of certain debt owed by the Company to ONE44 pursuant to a 4% convertible redeemable note due February 16, 2023, dated February 16, 2022 (the “Note”), in the principal sum of $90,000, plus accrued interest. On March 7, 2023, pursuant to the terms of the Agreement, the Company paid ONE44 $88,738, the debt was settled, and the ONE44 Capital Note was terminated.

 

The balance of the ONE44 Capital note as of June 30, 2024 and December 31, 2023 was $0, respectively.

 

Convertible Promissory Note – ONE44 Capital LLC #2

 

On May 20, 2022, the Company entered into a Securities Purchase Agreement, (the “ONE44 Capital purchase agreement #2”) by and between the Company and ONE44 Capital LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $115,000 (the “ONE44 Capital Note”). The ONE44 Capital Note has an original issue discount of $10,000 and reimbursement of $5,000, resulting in gross proceeds to the Company of $100,000.

 

24

 

The ONE44 Capital Note bears interest at a rate of 4% per annum and matures on May 20, 2023. Any amount of principal or interest on the Note which is not paid when due will bear interest at a rate of 24% per annum. The Note may not be prepaid in whole or in part except as provided in the Note by way of conversion at the option of the Buyer.

 

ONE44 is entitled, at its option, at any time after the sixth monthly anniversary of cash payment, to convert all or any amount then outstanding under the May 2022 ONE44 Note into shares of common stock at a price per share equal to 55% of the lowest daily trading VWAP of the Company’s common stock for the 20 prior trading days, subject to a 4.99% equity blocker and subject to the terms of the May 2022 ONE44 Note.

 

Since the conversion price is based on 55% of the lowest daily trading VWAP of the Company’s common stock for the 20 prior trading days, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.

 

The $10,000 original issue discounts, the $5,000 reimbursement and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $95,000.

 

ONE44 Capital LLC converted $20,000 principal to common shares in the quarter ended March 31, 2023 and converted $20,000 principal and $770 interest to common shares in the quarter ended June 30, 2023.

 

On May 10, 2023, the Company entered into debt repayment and release agreement with ONE44 Capital LLC. Pursuant to the terms of the Agreement, the Company agreed to pay to ONE44 $77,893 as full and complete payment of certain debt owed by the Company to ONE44 pursuant to a 4% convertible redeemable note due May 20, 2023 (the “Note”), in principal sum of $75,000, plus accrued interest. On May 11, 2023, pursuant to the terms of the Agreement, the Company paid ONE44 $77,893, the debt was settled, and the ONE44 Capital Note was terminated.

 

The balance of the ONE44 Capital note as of June 30, 2024 and December 31, 2023 was $0, respectively.

 

Convertible Promissory Note – 1800 Diagonal Lending LLC

 

On June 23, 2022, the Company entered into a Securities Purchase Agreement, (the “Sixth Street #4 purchase agreement”), by and between the Company and Diagonal Lending LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $86,625 (the “Diagonal Note”). The Diagonal Note has an original issue discount of $7,875, $3,000.00 paid to legal counsel for the Company, and $750.00 which amount was retained by the Investor as a due diligence fee resulting in gross proceeds to the Company of $75,000.

 

The Note has a maturity date of June 23, 2023 and bears interest at 10% per annum. No payments of the principal amount or interest are due prior to the maturity date, other than as specifically set forth in the Note. The Company may not prepay the Note prior to the maturity date, other than by way of a conversion initiated by Investor.

 

The Note provides Investor with conversion rights to convert all or any part of the outstanding and unpaid principal amount of the Note at any time, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Note and ending on the later of: (i) the Maturity Date; and (ii) the date of payment of the Default Amount (as defined in the Note). Notwithstanding the foregoing, the Investor shall not be entitled to a conversion under the Note upon which the sum of (1) the number of shares of common stock, $0.000001 par value per share (“Common Stock”) beneficially owned by the Investor and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised or unconverted portion of any other security of the Company subject to a similar limitation on conversion or exercise) and (2) the number of shares of Common Stock issuable upon the conversion would result in beneficial ownership by the Investor and its affiliates of more than 4.99% of the outstanding shares of Common Stock.

 

25

 

The conversion price is equal to the lesser of the variable conversion price and fixed conversion price which is $1.00. The variable conversion price is defined in the Note as 75% multiplied by the lowest VWAP for shares of Common Stock during the 20 trading days immediately preceding the Conversion Date.

 

Since the conversion price is based on the lesser of (i) $1.00 or (ii) 75% of the VWAP during the 20-trading day period immediately prior to the option conversion date, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.

 

The $11,625 original issue discounts and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $86,625.

 

Three conversions occurred during the period ending March 31, 2023, resulting in a principal reduction of $46,500 and remaining balance was settled on February 17, 2023 as disclosed below.

 

On February 17, 2023, the Company entered into a Settlement and Release Agreement by and between the Company and 1800 Diagonal Lending LLC. Pursuant to the terms of the Agreement, in full and final settlement of the Diagonal lending LLC notes, the Company agreed to (i) pay to the Lender $105,000; and (ii) issue to the Lender shares of the Company’s common stock with respect to the Lender’s notice of conversion dated February 16, 2023 relating to a partial conversion of Note #1 (with a then-current balance of $45,479).

 

As a result, as of February 17, 2023, pursuant to the terms of the Agreement, the Debt was settled and all the 1800 Diagonal Lending LLC notes were terminated.

 

The balance of the Diagonal note as of June 30, 2024 and December 31, 2023 was $0, respectively.

 

Convertible Promissory Note – Diagonal Lending LLC

 

On July 8, 2022, the Company entered into a Securities Purchase Agreement, (the “1800 Diagonal Lending LLC purchase agreement”), by and between the Company and Diagonal Lending LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $61,812 (the “Diagonal Note”). The Diagonal Note has an original issue discount of $5,375 and $3,750 paid to legal counsel for the Company, resulting in gross proceeds to the Company of $52,688.

 

The Note has a maturity date of July 8, 2023 and bears interest at 10% per annum. No payments of the principal amount or interest are due prior to the maturity date, other than as specifically set forth in the Note. The Company may not prepay the Note prior to the maturity date, other than by way of a conversion initiated by Investor.

 

The Note provides Investor with conversion rights to convert all or any part of the outstanding and unpaid principal amount of the Note at any time, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Note and ending on the later of: (i) the Maturity Date; and (ii) the date of payment of the Default Amount (as defined in the Note). Notwithstanding the foregoing, the Investor shall not be entitled to a conversion under the Note upon which the sum of (1) the number of shares of common stock, $0.000001 par value per share (“Common Stock”) beneficially owned by the Investor and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised or unconverted portion of any other security of the Company subject to a similar limitation on conversion or exercise) and (2) the number of shares of Common Stock issuable upon the conversion would result in beneficial ownership by the Investor and its affiliates of more than 4.99% of the outstanding shares of Common Stock.

 

The conversion price is equal to the lesser of the variable conversion price and fixed conversion price which is $1.00. The variable conversion price is defined in the Note as 75% multiplied by the lowest VWAP for shares of Common Stock during the 20 trading days immediately preceding the Conversion Date.

 

Since the conversion price is based on the lesser of (i) $1.00 or (ii) 75% of the VWAP during the 20-trading day period immediately prior to the option conversion date, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.

 

26

 

The $5,375 original issue discounts and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $61,812.

 

On February 17, 2023, the Company entered into a Settlement and Release Agreement by and between the Company and 1800 Diagonal Lending LLC. Pursuant to the terms of the Agreement, in full and final settlement of the Diagonal lending LLC notes, the Company agreed to (i) pay to the Lender $105,000; and (ii) issue to the Lender shares of the Company’s common stock with respect to the Lender’s notice of conversion dated February 16, 2023 relating to a partial conversion of Note #1 (with a then-current balance of $45,479).

 

As a result, as of February 17, 2023, pursuant to the terms of the Agreement, the Debt was settled and all the 1800 Diagonal Lending LLC notes were terminated.

 

The balance of the Diagonal note as of June 30, 2024 and December 31, 2023 was $0, respectively.

 

Below is the summary of the principal balance and debt discounts as of June 30, 2024 and December 31, 2023.

 

SCHEDULE OF CONVERTIBLE PROMISSORY NOTE

Convertible Promissory Note Holder		Start Date		End Date		Initial Note Principal Balance				Current Note Principal Balance				Debt Discounts As of Issuance				Amortization				Debt Discounts As of June 30, 2024
GS Capital #2		2/16/2022		2/16/2022			577,778				-				577,778				(577,778	)			-
GS Capital #2 - replacement		6/29/2022		8/16/2022			635,563				-				-				-				-
GS Capital #3		3/16/2022		3/16/2022			577,778				577,778				577,778				(577,778	)			-
GS Capital #4		4/1/2022		4/1/2022			550,000				550,000				550,000				(550,000	)			-
Eagle Equities LLC		4/13/2022		4/13/2022			1,100,000				1,100,000				1,100,000				(1,100,000	)			-
GS Capital #5		4/29/2022		4/29/2022			550,000				550,000				550,000				(550,000	)			-
GS Capital #6		6/3/2022		6/3/2022			550,000				550,000				550,000				(550,000	)			-
Chris Etherington		8/26/2022		8/26/2022			165,000				165,000				165,000				(165,000	)			-
Rui Wu		8/26/2022		8/26/2022			550,000				550,000				550,000				(550,000	)			-
Sixth Street Lending #1		11/28/2022		11/28/2022			224,000				-				173,894				(173,894	)			-
Sixth Street Lending #2		12/9/2022		12/9/2022			93,500				-				79,118				(79,118	)			-
Fast Capital LLC		1/10/2022		1/10/2023			120,000				120,000				120,000				(120,000	)			-
Sixth Street Lending #3		1/12/2022		1/12/2023			70,125				-				50,748				(50,748	)			-
One 44 Capital		2/16/2022		2/16/2023			175,500				-				148,306				(135,000	)			-
Coventry Enterprise		3/3/2022		3/3/2023			150,000				-				150,000				(150,000	)			-
One 44 Capital #2		5/20/2022		5/20/2023			115,000				-				115,000				(115,000	)			-
1800 Diagonal Lending LLC		6/23/2022		6/23/2023			86,625				-				86,625				(86,625	)			-
1800 Diagonal Lending LLC		7/8/2022		7/8/2023			61,813				-				61,813				(61,813	)			-
Total																			Total			$	-
																			Remaining note principal balance				4,162,778
																			Total convertible promissory notes, net			$	4,162,778

 

27

 

Future payments of principal of convertible notes payable at June 30, 2024 are as follows:

 

SCHEDULE OF FUTURE MATURITIES OF CONVERTIBLE NOTES PAYABLE

Years ending December 31,
2024		$	(4,162,778	)
2025			-
2026			-
Thereafter			-
Total		$	(4,162,778	)

 

Interest expenses recorded related to the convertible notes payable for the six months ended June 30, 2024 and 2023 were $301,732 and $371,762, respectively.

 

The Company amortized $0 and $140,144 of the discount on the convertible notes payable to interest expense for the six months ended June 30, 2024 and 2023, respectively.

 

NOTE 8 – SHARES ISSUED - LIABILITY

 

As of June 30, 2024 and December 31, 2023, the Company entered into various consulting agreements with consultants, directors, and convertible debt. The balances of shares to be issued – liability was $468,042 and $318,042, respectively. The Company recorded these consultant and director shares under liability based on the shares will be issued at a fixed monetary amount known at inception under ASC 480.

 

Shares to be issued - liability is summarized as below:

 SCHEDULE OF SHARES TO BE ISSUED LIABILITY

Beginning Balance, January 1, 2023		$	573,333
Shares to be issued			300,000
Shares issued			(555,291	)
Ending Balance, December 31, 2023		$	318,042

 

Shares to be issued - liability is summarized as below:

 

Beginning Balance, January 1, 2024		$	318,042
Shares to be issued			150,000
Shares issued			0
Ending Balance, June 30, 2024		$	468,042

 

28

 

NOTE 9 – DERIVATIVE LIABILITY

 

The derivative liability is derived from the conversion features in note 8 signed for the period ended December 31, 2023. All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of June 30, 2024 and December 31, 2023, the derivative liability was $2,175,018 and $873,913, respectively. The Company recorded $56,279 gain and $245,343 gain from changes in derivative liability during the three months ended June 30, 2024 and 2023, respectively. The Company recorded $1,301,105 loss and $1,137,479 loss from changes in derivative liability during the six months ended June 30, 2024 and 2023, respectively.

 

The Binomial model with the following assumption inputs:

 SCHEDULE OF DERIVATIVE LIABILITY ASSUMPTIONS INPUT

		December 31, 2023
Annual Dividend Yield			—
Expected Life (Years)			0.1 – 0.7 years
Risk-Free Interest Rate			5.26% - 5.53	%
Expected Volatility			570-703	%

 

Fair value of the derivative is summarized as below:

 SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY

Beginning Balance, December 31, 2022		$	799,988
Additions			-
Mark to Market			335,722
Cancellation of Derivative Liabilities Due to Conversions			-
Reclassification to APIC Due to Conversions			(261,797	)
Ending Balance, December 31, 2023		$	873,913

 

 

		June 30, 2024
Annual Dividend Yield			—
Expected Life (Years)			0.1 – 0.7 years
Risk-Free Interest Rate			5.33	%
Expected Volatility			593	%

 

 

Fair value of the derivative is summarized as below:

 

Beginning Balance, December 31, 2023		$	873,913
Additions			-
Mark to Market			1,301,105
Cancellation of Derivative Liabilities Due to Conversions			-
Reclassification to Other Income (Loss) Due to Conversions			-
Ending Balance, June 30, 2024		$	2,175,018

 

NOTE 10 – NOTE PAYABLE, RELATED PARTY

 

Note payable – Mr. Ben-Yohanan without interest

 

For the six months ended June 30, 2024 and 2023, the Company borrowed $119,000 and $1,060,000, respectively, from Mr. Ben-Yohanan. The Company, also, made payments of $396,667 and settled of $1,197,501 with issuance in common stock shares towards the note payable as of December 31, 2023. The note is due on demand and has no interest. The balance of the related party note payable as of June 30, 2024 and December 31, 2023 was $369,093 and $250,093, respectively, and included in discontinued operations on the balance sheets.

 

Effective March 4, 2021, the Company entered into three (3) separate director agreements with Amir Ben-Yohanan, Christopher Young, and Simon Yu. The Director Agreements set out terms and conditions of each of Mr. Ben-Yohanan’s, Mr. Young’s, and Mr. Yu’s role as a director of the Company. Mr. Young and Yu resigned from their officer and director positions with the Company on October 8, 2022.

 

29

 

Pursuant to the Director Agreements, the Company agreed to compensate each of the Directors as follows:

 

	●	An issuance of 31,821 shares of the Company’s common stock, par value par value $0.000001 (“Common Stock”), to be issued on the Effective Date, as compensation for services provided by each of the Directors to the Company prior to the Effective Date; and
	●	An issuance of a number of shares of Common Stock having a fair market value (as defined in each of the Director Agreements) of $25,000 at the end of each calendar quarter that the Director serves as a director.

 

As of June 30, 2024 and December 31, 2023, the Company has a payable balance owed to the sellers of Magiclytics of $97,761 and $97,761 from the acquisition of Magiclytics on February 3, 2021.

 

During the year ended December 31, 2023, Mr. Young and Mr. Yu prior accrued and unpaid wages amounting $80,000 a piece for total of $160,000 as of September 30, 2023 were forgiven per consulting agreement section 3(c) by the Company. The forgiven accrued and unpaid wages were recorded as a charge to additional paid in capital.

 

On October 7, 2021, the Board of Directors of the Company appointed Dmitry Kaplun as the Company’s Chief Financial Officer. Pursuant to the terms of the Employment Agreement, the Board entered into a restricted stock award agreement (the “Restricted Stock Agreement”) dated October 7, 2022. Pursuant to the terms of the Restricted Stock Agreement, the Board granted Mr. Kaplun 58,824 shares of restricted common stock on October 7, 2022. 25% of the shares vest on each of the three-month, six-month, nine-month and 12-month anniversaries of the grant date.

 

On October 12, 2021, the Board appointed Massimiliano Musina to serve as a member of the Company’s Board of Directors. In connection with Mr. Musina’s appointment, the Company and Mr. Musina entered into an Independent Director Agreement dated October 12, 2021 (the “Director Agreement”). Pursuant to the terms of the Director Agreement, the Company agreed to issue to Mr. Musina each quarter a number of shares of common stock having a fair market value of $25,000, in exchange for Mr. Musina’s service as a member of the Company’s Board of Directors.

 

On April 1, 2022, Clubhouse Media Group, Inc. (the “Company”) entered into an employment agreement with Amir Ben-Yohanan, the Company’s Chief Executive Officer, effective April 11, 2022. The terms of the employment agreement are substantially similar to the terms of Mr. Ben-Yohanan’s prior employment agreement with the Company. Accordingly, pursuant to the terms of the employment agreement, Mr. Ben-Yohanan will continue to serve as Chief Executive Officer of the Company, reporting to the Board of Directors (the “Board”). As compensation for Mr. Ben-Yohanan’s services, the Company agreed to pay Mr. Mr. Ben-Yohanan an annual base salary of $400,000 (the “Base Salary”) comprised of two parts a “Cash Portion”, and an “Optional Portion”. The Cash Portion is a monthly cash payment of $15,000. The remaining $220,000 per year – the Optional Portion – is payable as follows:

 

	(i)	If the Company’s Board determines that the Company has sufficient cash on hand to pay all or a portion of the Optional Portion in cash, such amount shall be paid in cash.
	(ii)	If the Board determines that the Company does not have sufficient cash on hand to pay all of the Optional Portion in cash, then the portion of the Optional Portion which the Board determines that the Company has sufficient cash on hand to pay in cash will be paid in cash, and the remainder (the “Deferred Portion”) will either:

 

	a.	be paid at a later date, when the Board determines that the Company has sufficient cash on hand to enable the Company to pay the Deferred Portion; or
	b.	will not be paid in cash – and instead, the Company will issue shares of Company Common Stock equal to

 

	(A)	the Deferred Portion, divided by (B) the VWAP (as defined in the employment agreement) as of the
	(B)	date of issuance of such shares of Company Common Stock.

 

In addition, pursuant to the employment agreement, Mr. Ben-Yohanan is entitled to be paid discretionary annual bonuses as determined by the Board, and is also entitled to receive fringe benefits, such as, but not limited to, reimbursement for reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel, vacation days, and certain insurances.

 

The initial term of the employment agreement was for one year from April 11, 2022, unless earlier terminated. Thereafter, the term is automatically extended on an annual basis for terms of one year each, unless either the Company or Mr. Ben-Yohanan provides notice to the other party of their desire to not so renew the term of the agreement (as applicable) at least 30 days prior to the expiration of the then-current term.

 

30

 

Mr. Ben-Yohanan’s employment with the Company is “at will,” meaning that either Mr. Ben-Yohanan or the Company may terminate Mr. Ben-Yohanan’s employment at any time and for any reason, subject to certain terms and conditions.

 

The Company may terminate the employment agreement at any time, with or without “cause,” as defined in the employment agreement and Mr. Ben-Yohanan may terminate the employment agreement at any time, with or without “good reason,” as defined in the employment agreement. If the Company terminates the employment agreement for cause or Mr. Ben-Yohanan terminates the employment agreement without good reason, Mr. Ben-Yohanan will be entitled to be paid any unpaid salary owed or accrued, including the issuance of any shares of Company Common Stock owed or accrued (as compensation) as of the termination date. In the event that there was any Deferred Portion which had been agreed to be paid in cash, such Deferred Portion instead will be paid in shares of Company Common Stock as though such amount had been agreed to be paid via the issuance of shares of Company Common Stock. Mr. Ben-Yohanan will also be entitled to payment for any unreimbursed expenses as of the termination date. However, any unvested portion of any equity granted to Mr. Ben-Yohanan will be immediately forfeited as of the termination date.

 

During the year ended December 31, 2023, Mr. Ben-Yohanan entered into an agreement with the Company to forgive all prior accrued and unpaid wages amounting to $785,000 as of September 30, 2023 and agreed to forego any wages until further notification to the Company. The forgiven accrued and unpaid wages were recorded as a charge to additional paid in capital.

 

As of June 30, 2024, the Company had accrued unpaid wages amounting to $300,000 to Mr. Ben-Yohanan and included in accounts payable and accrued liabilities on the balance sheets.

 

On April 19, 2022, the board of directors (the “Board”) of Clubhouse Media Group, Inc. (the “Company”) and stockholders holding a majority of the Company’s voting power approved the Clubhouse Media Group, Inc. 2022 Equity Incentive Plan (the “2022 Plan”).

 

On July 11, 2022, the Board and stockholders holding a majority of the voting power of the Company approved and adopted the Clubhouse Media Group, Inc. 2023 Equity Incentive Plan (the “2023 Plan”).

 

NOTE 11 - JOINT VENTURE AGREEMENT- CONSOLIDATED SUBSIDIARY

 

On July 31, 2022, the Company entered into a joint venture deal memo with Alden Henri Reiman (“Mr. Reiman”), pursuant to which the parties agreed to enter into a more permanent joint venture arrangement, involving the creation of a Nevada limited liability company, The Reiman Agency LLC (the “Agency”), of which the Company shall own 51% of the membership units, and Mr. Reiman shall own 49% of the membership units. Mr. Reiman is to serve as President of the Agency, pursuant to the terms of an Executive Employment Agreement. The parties’ respective membership interests shall be non-transferrable, and the Agency shall not issue additional membership interests, unless the parties mutually consent in each instance. The Company consolidated this joint venture since we owned 51% and has control in this entity.

 

Mr. Reiman shall oversee the day-to-day operations of the Agency, but shall consult with the Company on a regular basis and regularly update the Company on the status of deals and the operations of the business. All material business and financial decisions shall be subject to the Company’s final approval. The Company shall not exercise its approval rights in an arbitrary or capricious manner.

 

In the event that Mr. Reiman determines that office space is required to properly carry on the business of the Agency, Mr. Reiman shall have the authority to lease a reasonable office space on behalf of the Agency, subject to the Company’s prior review and approval. The Company has agreed and approved an office leasing budget of up to $200,000 USD annually. Expenses in excess of $400 must be pre-approved by the Company.

 

On the Effective Date, the parties closed the Agreement by executing an Operating Agreement for the Agency, dated the Effective Date, which encapsulates the essential terms and conditions contained in the Agreement.

 

In connection with Mr. Reiman’s appointment as President of the Agency, on the Effective Date, the Company and the Agency, a majority owned subsidiary of the Company, entered into a written Executive Employment Agreement (the “Employment Agreement”) with Mr. Reiman for a term of two (2) years following the Effective Date (the “Initial Term”). The Initial Term and any renewal term shall automatically be extended for up to two (2) more additional terms of two (2) years (each a “Renewal Term”), for an aggregate of up to six (6) years.

 

31

 

The Employment Agreement provides Mr. Reiman with a monthly base salary of $37,500 per month, payable on a weekly basis in accordance with the Company’s own payroll policies for the initial term, provided however, that if within the three (3) month period following full execution of the Employment Agreement the Agency is profitable, the Base Salary shall increase to $42,500 per month, beginning the week following the end of the Period. On December 14, 2023, the Company terminated employment of Mr. Reiman.

 

Additionally, on the last day of each month of the term, Mr. Reiman shall be entitled to an amount of shares equal to seven and one half percent (7.5%) of the net receipts for the applicable month (“Additional Shares”), divided by the twenty (20) day VWAP of such shares from the last day of the applicable month. All Additional Shares issued to Mr. Reiman pursuant to the Employment Agreement shall be issued to Mr. Reiman within seven (7) business days of the date such shares vest.

Mr. Reiman shall also be entitled to Twenty-Five Percent (25%) of the net receipts generated by the Agency during each month (the “Commission Bonus”). The Commission Bonus shall be calculated monthly and paid to Reiman within seven (7) business days of the last business day of the applicable month.

 

The Company allocates the net income or loss of this joint venture to non-controlling interest based on the ownership of this joint venture. The non-controlling interest for the three months ended June 30, 2024 and 2023, was $(278) and $(12,158), respectively, included with discontinued operations in statement of operations. The non-controlling interest for the six months ended June 30, 2024 and 2023, was $955 and $(156,277), respectively, included with discontinued operations in statement of operations. During December 2023, the Company terminated the joint venture agreement with Mr. Reiman due to switching focus away from brand deals. However, the controlling ownership percentage of the Company did not change and will continue until the contracts entered into before termination of agreement are completed.

 

NOTE 12 – STOCKHOLDERS’ EQUITY (DEFICIT)

 

On July 7, 2020, the Company increased the authorized capital stock of the Company to 550,000,000, comprised of 500,000,000 shares of common stock, par value $0.001, and 50,000,000 shares of preferred stock, par value $0.001.

 

On April 19, 2022, the Company filed Articles of Amendment to the Company’s Articles of Incorporation with the Nevada Secretary of State that had the effect of increasing the authorized shares of common stock from 500,000,000 to 2,000,000,000.

 

The Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada on June 13, 2022 for the purpose of amending the Articles of Incorporation of the Company to reduce the par value of the common stock of the Company, par value $0.001 per share, from $0.001 to $0.000001.

 

On June 23, 2022, the Company filed Articles of Amendment to the Company’s Articles of Incorporation with the Nevada Secretary of State that had the effect of increasing the authorized shares of common stock from 2,000,000,000 to 8,000,000,000. The Company’s Preferred Stock was unchanged by the Amendment.

 

On November 15, 2022, the Company filed a certificate of amendment to its Articles of Incorporation to increase the Company’s authorized shares of common stock, par value $0.000001 per share, from 8,000,000,000 to 25,000,000,000. Accordingly, following the filing of the Amendment, the Company has 25,050,000,000 authorized shares of capital stock, consisting of 25,000,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.001 per share.

 

One share of Series X Preferred Stock is outstanding as of December 31, 2022. The single share of Series X Preferred Stock outstanding is held by Amir Ben-Yohanan, the Company’s Chief Executive Officer, who also holds 56,958,396 shares of Common Stock as of December 31, 2023.

 

32

 

Preferred Stock

 

As of June 30, 2024 there was 1 preferred share issued and outstanding.

 

On November 12, 2020, the Company filed a Certificate of Designations with the Secretary of State of Nevada to designate one share of the preferred stock of the Company as the Series X Preferred Stock of the Company.

 

In November 2020, the Company issued and sold to the Company’s Chief Executive Officer 1 share of Series X Preferred Stock, at a purchase price of $1.00. The share of Series X Preferred Stock shall have a number of votes at any time equal to (i) the number of votes then held or entitled to be made by all other equity securities of the Company, debt securities of the Company or pursuant to any other agreement, contract or understanding of the Company, plus (ii) one (1). The Series X Preferred Stock shall vote on any matter submitted to the holders of the Common Stock, or any class thereof, for a vote, and shall vote together with the Common Stock, or any class thereof, as applicable, on such matter for as long as the share of Series X Preferred Stock is issued and outstanding. The Series X Preferred Stock shall not have the right to vote on any matter as to which solely another class of Preferred Stock of the Company is entitled to vote pursuant to the certificate of designations of such other class of Preferred Stock of the Company.

 

The Series X Preferred Stock shall not be convertible into shares of any other class of stock of the Company and entitled to receive any dividends paid on any other class of stock of the Company.

 

In the event of any liquidation, dissolution or winding up of the Company, either voluntarily or involuntarily, a merger or consolidation of the Company wherein the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, the Series X Preferred Stock shall not be entitled to receive any distribution of any of the assets or surplus funds of the Company and shall not participate with the Common Stock or any other class of stock of the Company therein.

 

Common Stock

 

As of June 30, 2024 and December 31, 2023, the Company had 25,000,000,000 shares of common stock authorized with a par value of $0.000001. There were 16,372,179,486 shares issued and outstanding at June 30, 2024 and December 31, 2023.

 

For the year ended December 31, 2023, the Company issued 2,105,949,128 shares to settle conversions of $229,840 of convertible promissory notes principal and accrued interest.

 

For the year ended December 31, 2023, the Company issued 5,987,500,000 shares for debt exchange in amount of $1,197,501 to Amir Ben-Yohanan non-interest loan to the Company.

 

For the year ended December 31, 2023, the Company issued 1,448,352,195 shares for services provided by directors.

 

Warrants

 

A summary of the Company’s stock warrants activity is as follows:

 

SUMMARY OF WARRANTS ACTIVITY

		Number of Options (in thousands)				Weighted- Average Exercise Price				Weighted- Average Contractual Term (in years)				Aggregate Intrinsic Value
Outstanding at December 31, 2023			165,077			$	2.05				2.65				-
Issued			-				-				-				-
Exercised			-				-				-				-
Canceled			-				-				-				-
Outstanding at June 30, 2024			165,077			$	2.05				2.15			$	-
Vested and expected to vest at June 30, 2024			165,077			$	2.05				2.15			$	-
Exercisable at June 30, 2024			165,077			$	2.05				2.15			$	-

 

No stock options were granted by the Company during the six months ended June 30, 2024.

 

33

 

The fair values of warrants granted in 2021 were estimated using the Black-Scholes option pricing model on the grant date using the following assumptions:

 

SCHEDULE OF FAIR VALUE OF STOCK OPTIONS GRANTED ASSUMPTIONS

Dividend yield		—		%
Expected term (in years)			5
Volatility			368 - 369	%

 

Equity Purchase Agreement and Registration Rights Agreement

 

On November 2, 2021, Clubhouse Media Group, Inc (the “Company”) entered into an Equity Purchase Agreement (the “Agreement”) and Registration Rights Agreement (the “Registration Rights Agreement”) with Peak One Opportunity Fund, L.P., a Delaware limited Partnership (“Investor”), dated as of October 29, 2021, pursuant to which the Company shall have the right, but not the obligation, to direct Investor, to purchase up to $15,000,000.00 (the “Maximum Commitment Amount”) in shares of the Company’s common stock, par value $0.000001 per share (“Common Stock”) in multiple tranches. Further, under the Agreement and subject to the Maximum Commitment Amount, the Company has the right, but not the obligation, to submit a Put Notice (as defined in the Agreement) from time to time to Investor (i) in a minimum amount not less than $20,000.00 and (ii) in a maximum amount up to the lesser of (a) $400,000.00 or (b) 250% of the Average Daily Trading Value (as defined in the Agreement).

 

In exchange for Investor entering into the Agreement, the Company agreed, among other things, to (A) issue Investor and Peak One Investments, LLC, an aggregate of 70,000 shares of Common Stock (the “the Commitment Shares”), and (B) file a registration statement registering the Common Stock issued as Commitment Shares or issuable to Investor under the Agreement for resale (the “Registration Statement”) with the Securities and Exchange Commission within 60 calendar days of the Agreement, as more specifically set forth in the Registration Rights Agreement.

 

The obligation of Investor to purchase the Company’s Common Stock shall begin on the date of the Agreement, and ending on the earlier of (i) the date on which Investor shall have purchased Common Stock pursuant to this Agreement equal to the Maximum Commitment Amount, (ii) twenty four (24) months after the date of the Agreement, (iii) written notice of termination by the Company to Investor (which shall not occur during any Valuation Period or at any time that Investor holds any of the Put Shares), (iv) the Registration Statement is no longer effective after the initial effective date of the Registration Statement, or (v) the date that the Company commences a voluntary case or any person commences a proceeding against the Company, a custodian is appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefit of its creditors (the “Commitment Period”).

 

During the Commitment Period, the purchase price to be paid by Investor for the Common Stock under the Agreement shall be 95% of the Market Price, which is defined as the lesser of the (i) closing bid price of the Common Stock on the trading day immediately preceding the respective Put Date (as defined in the Agreement), or (ii) lowest closing bid price of the Common Stock during the Valuation Period (as defined in the Agreement), in each case as reported by Bloomberg Finance L.P or other reputable source designated by Investor.

 

The Agreement and the Registration Rights Agreement contain customary representations, warranties, agreements, and conditions to completing future sale transactions, indemnification rights and obligations of the parties. Among other things, Investor represented to the Company, that it is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”)), and the Company sold the securities in reliance upon an exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

 

2023 Equity Incentive Plan

 

On July 11, 2022, the Board and stockholders holding a majority of the voting power of the Company approved and adopted the Clubhouse Media Group, Inc. 2023 Equity Incentive Plan (the “2023 Plan”).

 

A total of 75,000,000 shares of the Company’s common stock are authorized for issuance pursuant to the 2023 Plan.

 

34

 

Additionally, if any award issued pursuant to the 2023 Plan expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an exchange program, as provided in the 2023 Plan, or, with respect to restricted stock, restricted stock units (“RSUs”), performance units or performance shares, is forfeited to or repurchased by the Company due to the failure to vest, the unpurchased shares (or for awards other than stock options or stock appreciation rights the forfeited or repurchased shares) which were subject thereto will become available for future grant or sale under the 2023 Plan (unless the 2023 Plan has terminated). With respect to stock appreciation rights, only shares actually issued pursuant to a stock appreciation right will cease to be available under the 2023 Plan; all remaining shares under stock appreciation rights will remain available for future grant or sale under the 2023 Plan (unless the 2023 Plan has terminated). Shares that have actually been issued under the 2023 Plan under any award will not be returned to the 2023 Plan and will not become available for future distribution under the 2023 Plan; provided, however, that if shares issued pursuant to awards of restricted stock, restricted stock units, performance shares or performance units are repurchased by the Company or are forfeited to the Company due to the failure to vest, such shares will become available for future grant under the 2023 Plan. Shares used to pay the exercise price of an award or to satisfy the tax withholdings related to an award will become available for future grant or sale under the 2023 Plan. To the extent an award under the 2023 Plan is paid out in cash rather than shares, such cash payment will not result in reducing the number of shares available for issuance under the 2023 Plan.

 

Notwithstanding the foregoing and, subject to adjustment as provided in the 2023 Plan, the maximum number of shares that may be issued upon the exercise of incentive stock options will equal the aggregate share number stated above, plus, to the extent allowable under Section 422 of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, any shares that become available for issuance under the 2023 Plan in accordance with the foregoing.

 

Plan Administration

 

The Board or one or more committees appointed by the Board will administer the 2023 Plan. In addition, if the Company determines it is desirable to qualify transactions under the 2023 Plan as exempt under Rule 16b-3 of the Securities Exchange Act of 1934, as amended, such transactions will be structured with the intent that they satisfy the requirements for exemption under Rule 16b-3. Subject to the provisions of the 2023 Plan, the administrator has the power to administer the 2023 Plan and make all determinations deemed necessary or advisable for administering the 2023 Plan, including the power to determine the fair market value of the Company’s common stock, select the service providers to whom awards may be granted, determine the number of shares covered by each award, approve forms of award agreements for use under the 2023 Plan, determine the terms and conditions of awards (including the exercise price, the time or times at which the awards may be exercised, any vesting acceleration or waiver or forfeiture restrictions and any restriction or limitation regarding any award or the shares relating thereto), construe and interpret the terms of the 2023 Plan and awards granted under it, prescribe, amend and rescind rules relating to the 2023 Plan, including creating sub-plans and modify or amend each award, including the discretionary authority to extend the post-termination exercisability period of awards (provided that no option or stock appreciation right will be extended past its original maximum term), and to allow a participant to defer the receipt of payment of cash or the delivery of shares that would otherwise be due to such participant under an award. The administrator also has the authority to allow participants the opportunity to transfer outstanding awards to a financial institution or other person or entity selected by the administrator and to institute an exchange program by which outstanding awards may be surrendered or cancelled in exchange for awards of the same type which may have a higher or lower exercise price or different terms, awards of a different type or cash, or by which the exercise price of an outstanding award is increased or reduced. The administrator’s decisions, interpretations and other actions are final and binding on all participants.

 

Eligibility

 

Awards under the 2023 Plan, other than incentive stock options, may be granted to employees (including officers) of the Company or a subsidiary, members of the Company’s Board, or consultants engaged to render bona fide services to the Company or a subsidiary. Incentive stock options may be granted only to employees of the Company or a subsidiary.

 

35

 

Stock Options

 

Stock options may be granted under the 2023 Plan. The exercise price of options granted under the 2023 Plan generally must at least be equal to the fair market value of the Company’s common stock on the date of grant. The term of each option will be as stated in the applicable award agreement; provided, however, that the term may be no more than 10 years from the date of grant. The administrator will determine the methods of payment of the exercise price of an option, which may include cash, shares or other property acceptable to the administrator, as well as other types of consideration permitted by applicable law. After the termination of service of an employee, director, or consultant, they may exercise their option for the period of time stated in their option agreement. In the absence of a specified time in an award agreement, if termination is due to death or disability, the option will remain exercisable for 12 months. In all other cases, in the absence of a specified time in an award agreement, the option will remain exercisable for three months following the termination of service. An option may not be exercised later than the expiration of its term. Subject to the provisions of the 2023 Plan, the administrator determines the other terms of options.

 

Notwithstanding any other provision of the 2023 Plan to the contrary, the aggregate grant date fair value of all awards granted, under the 2023 Plan, to any director who is not an employee, during any fiscal year of the Company, taken together with any cash compensation paid to such director during such fiscal year, shall not exceed $300,000.

 

Stock Appreciation Rights

 

Stock appreciation rights may be granted under the 2023 Plan. Stock appreciation rights allow the recipient to receive the appreciation in the fair market value of the Company’s common stock between the exercise date and the date of grant. Stock appreciation rights may not have a term exceeding 10 years. After the termination of service of an employee, director or consultant, they may exercise their stock appreciation right for the period of time stated in their stock appreciation right agreement. In the absence of a specified time in an award agreement, if termination is due to death or disability, the stock appreciation rights will remain exercisable for 12 months. In all other cases, in the absence of a specified time in an award agreement, the stock appreciation rights will remain exercisable for three months following the termination of service. However, in no event may a stock appreciation right be exercised later than the expiration of its term. Subject to the provisions of the 2023 Plan, the administrator determines the other terms of stock appreciation rights, including when such rights become exercisable and whether to pay any increased appreciation in cash or with shares of the Company’s common stock, or a combination thereof, except that the per share exercise price for the shares to be issued pursuant to the exercise of a stock appreciation right will be no less than 100% of the fair market value per share on the date of grant.

 

Restricted Stock

 

Restricted stock may be granted under the 2023 Plan. Restricted stock awards are grants of shares of the Company’s common stock that vest in accordance with terms and conditions established by the administrator. The administrator will determine the number of shares of restricted stock granted to any employee, director, or consultant and, subject to the provisions of the 2023 Plan, will determine the terms and conditions of such awards. The administrator may impose whatever conditions to vesting it determines to be appropriate (for example, the administrator may set restrictions based on the achievement of specific performance goals or continued service to the Company); provided, however, that the administrator, in its sole discretion, may accelerate the time at which any restrictions will lapse or be removed. Recipients of restricted stock awards generally will have voting and dividend rights with respect to such shares upon grant without regard to vesting, unless the administrator provides otherwise. Shares of restricted stock that do not vest are subject to the Company’s right of repurchase or forfeiture.

 

Restricted Stock Units

 

RSUs may be granted under the 2023 Plan. RSUs are bookkeeping entries representing an amount equal to the fair market value of one share of the Company’s common stock. Subject to the provisions of the 2023 Plan, the administrator determines the terms and conditions of RSUs, including the vesting criteria and the form and timing of payment. The administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit or individual goals (including continued employment or service), applicable federal or state securities laws or any other basis determined by the administrator in its discretion. The administrator, in its sole discretion, may pay earned RSUs in the form of cash, in shares of the Company’s common stock or in some combination thereof. Notwithstanding the foregoing, the administrator, in its sole discretion, may accelerate the time at which any vesting requirements will be deemed satisfied.

 

36

 

Performance Units and Performance Shares

 

Performance units and performance shares may be granted under the 2023 Plan. Performance units and performance shares are awards that will result in a payment to a participant only if performance goals established by the administrator are achieved or the awards otherwise vest. The administrator will establish performance objectives or other vesting criteria in its discretion, which, depending on the extent to which they are met, will determine the number or the value of performance units and performance shares to be paid out to participants. The administrator may set performance objectives based on the achievement of Company-wide, divisional, business unit or individual goals (including continued employment or service), applicable federal or state securities laws or any other basis determined by the administrator in its discretion. After the grant of a performance unit or performance share, the administrator, in its sole discretion, may reduce or waive any performance criteria or other vesting provisions for such performance units or performance shares. Performance units shall have an initial dollar value established by the administrator on or prior to the grant date. Performance shares shall have an initial value equal to the fair market value of the Company’s common stock on the grant date. The administrator, in its sole discretion, may pay earned performance units or performance shares in the form of cash, in shares or in some combination thereof.

 

Non-Employee Directors

 

The 2023 Plan provides that all non-employee directors will be eligible to receive all types of awards (except for incentive stock options) under the 2023 Plan. The 2023 Plan includes a maximum limit of $300,000 of equity awards that may be granted to a non-employee director in any fiscal year. Any equity awards granted to a person for their services as an employee, or for their services as a consultant (other than as a non-employee director), will not count for purposes of the limitation. The maximum limit does not reflect the intended size of any potential compensation or equity awards to the Company’s non-employee directors.

 

NOTE 13 – COMMITMENTS AND CONTINGENCIES

 

On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”), and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The Company’s suppliers may decrease production levels based on factory closures and reduced operating hours in those facilities. Likewise, the Company is dependent on its workforce to deliver its products. Developments such as social distancing and shelter-in-place directives may impact the Company’s ability to deploy its workforce effectively. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report.

 

Management is actively monitoring the impact of the global situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. The Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time. If the pandemic continues, it may have a material effect on the Company’s results of future operations, financial position, and liquidity in the next 12 months.

 

NOTE 14 – SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events through August 10, 2024, the date these financial statements were available to be issued and noted no material subsequent events for disclosure.

 

 

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

 

Special Note Regarding Forward-Looking Statements

 

All statements other than statements of historical fact included in this quarterly report, including, without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. When used in this annual report, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or the Company’s management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the SEC.

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited financial statements and the notes thereto contained elsewhere in this quarterly report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

 

Overview

 

We are a social media firm. Our Company has recently ceased its operations in the agency and brand deal business to instead focus our efforts and resources on growing our wholly owned, creator monetization platform, HoneyDrip.com.

 

Through our subsidiary, West of Hudson Group, Inc. (“WOHG”), we currently generate revenues primarily through WOH Brands, LLC (“WOH Brands”), a 100% wholly owned subsidiary of WOHG, which operates Honeydrip.com, a new digital platform with a focus on the empowerment of creators. The site allows creators to connect with fans and sell exclusive photo and video content. The company previously generated revenue through The Reiman Agency, a 51% majority held joint venture which brokered brand promotional deals between brands and talent, but has since discontinued these operations.

 

Recent Developments

 

None

 

Results of Operations

 

For the Three and Six Months Ended June 30, 2024 Compared to the Three and Six Months Ended June 30, 2023

 

Net Revenue

 

Net revenue was $417,403 for the three months ended June 30, 2024, compared to net revenue of $347,474 for the three months ended June 30, 2023. The increase of $69,929 was the result of increase in brand promotional business platform Honeydrip.com.

 

Net revenue was $818,949 for the six months ended June 30, 2024, compared to net revenue of $699,251 for the six months ended June 30, 2023. The increase of $119,698 was the result of increase in brand promotional business platform Honeydrip.com.

 

Cost of Goods Sold

 

Cost of goods sold was $315,079 for three months ended June 30, 2024, compared to cost of goods sold of $218,004 for the three months ended June 30, 2023. The increase of $97,075 was due to higher sales volume from platform Honeydrip.com which in turn resulted in more commission due to content creators.

 

Cost of goods sold was $588,325 for six months ended June 30, 2024, compared to cost of goods sold of $436,892 for the six months ended June 30, 2023. The increase of $151,433 was due to higher sales volume from platform Honeydrip.com which in turn resulted in more commission due to content creators.

 

Gross Profit

 

Gross profit was $102,324 for the three months ended June 30, 2024, compared to gross profit of $129,470 for the three months ended June 30, 2023. The gross profit percentage was 25% for the three months ended June 30, 2024, compared to 37% for the three months ended June 30, 2023. The decrease is because the Company has higher commission due to content creators from platform Honeydrip.com.

 

Gross profit was $230,624 for the six months ended June 30, 2024, compared to gross profit of $262,359 for the six months ended June 30, 2023. The gross profit percentage was 28% for the six months ended June 30, 2024, compared to 38% for the six months ended June 30, 2023. The decrease is because the Company has higher commission due to content creators from platform Honeydrip.com.

 

 

Operating Expenses

 

Operating expenses for the three months ended June 30, 2024, were $352,204, compared to $509,418 for the three months ended June 30, 2023. The variances were as follows: (i) decrease in professional and consultant fees of $33,910; (ii) a decrease in advertising expenses of $7,935; (iii) decrease of payroll of $108,521; (iv) a decrease in other selling, general, and administrative expense of $6,850. The overall decrease in total operating expenses resulted from decrease in the salaries and wages and decrease in professional and consulting expenses to the Company.

 

Operating expenses for the six months ended June 30, 2024, were $757,307, compared to $833,034 for the six months ended June 30, 2023. The variances were as follows: (i) increase in professional and consultant fees of $18,906; (ii) a decrease in advertising expenses of $20,287; (iii) a increase of payroll of $1,215; (iv) a decrease in other selling, general, and administrative expense of $75,561. The overall decrease in total operating expenses resulted from decrease in the selling, general, and administrative and decrease in advertising expenses to the Company.

 

Other (Income) Expenses

 

Other (income) expenses for the three months ended June 30, 2024, were $130,413, as compared to $(33,895) for the three months ended June 30, 2023. Other (income) expenses for the three months ended June 30, 2024, included (i) change in fair value derivative liability of $(56,279); (ii) interest expense of $114,920; and (iii) gain related to debt of $71,772. Other expenses for the three months ended June 30, 2023 included (i) change in fair value derivative liability of $(245,343)); (ii) interest expense of $200,026; (iii) noncash amortization of debt discounts of $13,153; and (iv) other income of $1,731.

 

Other (income) expenses for the six months ended June 30, 2024, were $1,602760, as compared to $1,634,117 for the six months ended June 30, 2023. Other (income) expenses for the six months ended June 30, 2024, included (i) change in fair value derivative liability of $1,301,105; (ii) interest expense of $301,732; and (iii)loss related to debt of $77. Other expenses for the six months ended June 30, 2023 included (i) change in fair value derivative liability of $1,137,479; (ii) interest expense of $371,762; (iii) noncash amortization of debt discounts of $140,144; and (iv) other income of $15,268.

 

Net Loss from Continuing Operations

 

Net loss for the three months ended June 30, 2024 was $380,293, compared to $346,053, for the three ended June 30, 2023.

 

Net loss for the six months ended June 30, 2024 was $2,129,443 compared to $2,204,792, for the six ended June 30, 2023.

 

Net Loss from Discontinued Operations

 

Net loss for the three months ended June 30, 2024 was $86,314, compared to $13,711, for the three months ended June 30, 2023.

 

Net loss for the six months ended June 30, 2024 was $10,193, compared to $219,463, for the six months ended June 30, 2023.

 

 

Liquidity and Capital Resources

 

Operating Activities

 

Net cash used in operating activities for the six months ended June 30, 2024, was $129,630. This amount was primarily related to a net loss from operations of $(2,129,443), offset by (i) a net working capital increase of $231,482; (ii) non-cash expenses of $1,517,009 including (a) amortization of $65,9810; (b) stock-based compensation of $150,000; (c) change in fair value of derivative liability of $1,301,105; (d) discontinued operations of $(26,011), and offset by gain in debt settlement of $77.

 

Net cash used in operating activities for the six months ended June 30, 2023, was $256,865. This amount was primarily related to a net loss from operations of $(2,594,241), offset by (i) a net working capital increase of $732,032; (ii) non-cash expenses of $1,475,969 including (a) amortization of $61,644; (b) stock-based compensation of $150,000; (c) change in fair value of derivative liability of $1,137,479; (d) interest expense – amortization of debt discount of $142,114; (e) discontinued operations of $129,375), and offset by gain in debt settlement of $15,268.

 

Investment Activities

 

Net cash used in investing activities for the six months ended June 30, 2024, was $25,160 compared to $62,825 for the six months ended June 30, 2023.

 

Financing Activities

 

Net cash provided by financing activities for the six months ended June 30, 2024, was $119,000. The amount was related to borrowing from related party of $119,000. Net cash provided by financing activities for the six months ended June 30, 2022 was $396,395.

 

Impact of COVID-19 on the Company

 

Due to the digital/remote nature of the Company’s business, COVID-19 has had, and is expected to have, only a limited effect on the Company’s operations.

 

Going Concern

 

The Company adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) Topic 205-40, Presentation of Financial Statements – Going Concern, which requires that management evaluate whether there are relevant conditions and events that, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern and to meet its obligations as they become due within one year after the date that the financial statements are issued.

 

The accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern. While the Company is attempting to generate additional revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues. The Company will require additional cash funding to fund operations. Therefore, the Company concluded there was substantial doubt about the Company’s ability to continue as a going concern.

 

To fund further operations, the Company will need to raise additional capital. The Company may obtain additional financing in the future through the issuance of its common stock, or through other equity or debt financing. The Company’s ability to continue as a going concern or meet the minimum liquidity requirements in the future is dependent on its ability to raise significant additional capital, of which there can be no assurance. If the necessary financing is not obtained or achieved, the Company will likely be required to reduce its planned expenditures, which could have an adverse impact on the results of operations, financial condition and the Company’s ability to achieve its strategic objective. There can be no assurance that financing will be available on acceptable terms, or at all. The financial statements contain no adjustments for the outcome of these uncertainties. These factors raise substantial doubt about the Company’s ability to continue as a going concern and have a material adverse effect on the Company’s future financial results, financial position and cash flows.

 

 

Equity Purchase Agreement and Registration Rights Agreement

 

On November 2, 2021, the Company entered into an Equity Purchase Agreement and Registration Rights Agreement (the “Registration Rights Agreement”) with Peak One Opportunity Fund, L.P. (“Peak One”), dated as of October 29, 2021, pursuant to which the Company has the right, but not the obligation, to direct Peak One to purchase up to $15,000,000 (the “Maximum Commitment Amount”) in shares of the Company’s common stock in multiple tranches (the “Put Shares”). Further, under the Equity Purchase Agreement and subject to the Maximum Commitment Amount, the Company has the right, but not the obligation, to submit a Put Notice (as defined in the Equity Purchase Agreement) from time to time to Peak One (i) in a minimum amount not less than $20,000 and (ii) in a maximum amount up to the lesser of (a) $400,000 or (b) 250% of the Average Daily Trading Value (as defined in the Equity Purchase Agreement).

 

In exchange for Peak One entering into the Equity Purchase Agreement, the Company agreed, among other things, to (A) issue Peak One and Peak One Investments, LLC, an aggregate of 70,000 shares of common stock (the “Commitment Shares”), and (B) file a registration statement registering the common stock issued as Commitment Shares and issuable to Peak One under the Equity Purchase Agreement for resale (the “Registration Statement”) with the SEC within 60 calendar days of the Equity Purchase Agreement, as more specifically set forth in the Registration Rights Agreement.

 

The obligation of Peak One to purchase the Company’s common stock begins on the date of the Equity Purchase Agreement, and ends on the earlier of (i) the date on which Peak One has purchased common stock pursuant to the Equity Purchase Agreement equal to the Maximum Commitment Amount, (ii) 24 months after the date of the Equity Purchase Agreement, (iii) written notice of termination by the Company to Peak One (which shall not occur during any Valuation Period or at any time that Peak One holds any of the Put Shares), (iv) the Registration Statement is no longer effective after the initial effective date of the Registration Statement, or (v) the date that the Company commences a voluntary case or any person commences a proceeding against the Company, a custodian is appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefit of its creditors (the “Commitment Period”).

 

During the Commitment Period, the purchase price to be paid by Peak One for the common stock under the Equity Purchase Agreement shall be 95% of the Market Price, which is defined as the lesser of the (i) closing bid price of the common stock on the trading day immediately preceding the respective Put Date (as defined in the Equity Purchase Agreement), or (ii) lowest closing bid price of the common stock during the Valuation Period (as defined in the Equity Purchase Agreement), in each case as reported by Bloomberg Finance L.P or other reputable source designated by Peak One.

 

The number of Put Shares to be purchased by Peak One shall not exceed the number of such shares that, when aggregated with all other shares of common stock then owned by Peak One beneficially or deemed beneficially owned by Peak One, would result in Peak One owning more than 4.99% of the number of shares of common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable pursuant to a Put Notice.

 

In accordance with that certain Registration Rights Agreement, the Selling Securityholders are entitled to certain rights with respect to the registration of the Put Shares and Commitment Shares issued in connection with the Equity Purchase Agreement (the “Registrable Securities”). Pursuant to the Registration Rights Agreement, the Company must (i) file the Registration Statement within 60 calendar days from the date of the Registration Rights Agreement, (ii) use reasonable efforts to cause the Registration Statement to be declared effective under the Securities Act of 1933, as amended (the “Securities Act”), as promptly as possible after the filing thereof, but in any event no later than the 90th calendar day following the date of the Registration Rights Agreement, and (iii) use its reasonable efforts to keep such Registration Statement continuously effective under the Securities Act until all of the Commitment Shares and Purchase Shares have been sold thereunder or pursuant to Rule 144. The Company must also take such action as is necessary to register and/or qualify the Registrable Securities under such other securities or blue sky laws of all applicable jurisdictions in the United States.

 

 

Convertible Promissory Notes

 

The Company did not enter into convertible promissory notes during the period ending June 30, 2024. All outstanding convertible notes at June 30, 2024 and December 31, 2023 are discussed at the related footnote, see footnote #7 in the notes to the consolidated financial statements.

 

SHARES TO BE ISSUED - LIABILITY

 

As of June 30, 2024, and 2023, the Company entered into various consulting agreements with consultants, directors, and convertible debt. The Company recorded these consultant and director shares under liability based on the shares will be issued at a fixed monetary amount known at inception under ASC 480.

 

Off-Balance Sheet Arrangements

 

As of June 30, 2024, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act reasonably likely to have a material effect on our financial condition.

 

Critical Accounting Policies and Estimates

 

Use of Estimates

 

In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, useful life of fixed assets, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, and assumptions used in assessing impairment of long-lived assets. Actual results could differ from those estimates.

 

Accounts Receivable

 

The Company’s accounts receivable arises from providing services. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale.

 

The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Amounts determined to be uncollectible are charged or written-off against the reserve. As of June 30, 2024, and December 31, 2023, there were $0 and $79, respectively, for bad debt allowance for accounts receivable.

 

As of June 30, 2024, and December 31, 2023, there were $2,085 and $2,956, respectively, for bad debt allowance for accounts receivable included with discontinued operations on balance sheets.

 

Revenue Recognition

 

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).

 

 

Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company recognized revenue from providing temporary and permanent staffing solutions and sale of consumer products.

 

Managed Services Revenue

 

The Company generates revenue from its managed services when a marketer (typically a brand, agency, or partner) pays the Company to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).

 

The Company maintains separate arrangements with each marketer and content creator either in the form of a master agreement or terms of service, which specify the terms of the relationship and access to its platforms, or by statement of work, which specifies the price and the services to be performed, along with other terms. The transaction price is determined based on the fixed fee stated in the statement of work and does not contain variable consideration. Marketers who contract with the Company to manage their advertising campaigns or custom content requests may prepay for services or request credit terms. The agreement typically provides for either a non-refundable deposit, or a cancellation fee if the agreement is canceled by the customer prior to completion of services. Billings in advance of completed services are recorded as a contract liability until earned. The Company assesses collectability based on a number of factors, including the creditworthiness of the customer and payment and transaction history.

 

For Managed Services Revenue, the Company enters into an agreement to provide services that may include multiple distinct performance obligations in the form of: (i) an integrated marketing campaign to provide influencer marketing services, which may include the provision of blogs, tweets, photos or videos shared through social network offerings and content promotion, such as click-through advertisements appearing in websites and social media channels; and (ii) custom content items, such as a research or news article, informational material or videos. Marketers typically purchase influencer marketing services for the purpose of providing public awareness or advertising buzz regarding the marketer’s brand and they purchase custom content for internal and external use. The Company may provide one type or a combination of all types of these performance obligations on a statement of work for a lump sum fee. Revenue is accounted for when the performance obligation has been satisfied depending on the type of service provided. The Company views its obligation to deliver influencer marketing services, including management services, as a single performance obligation that is satisfied at the time the customer receives the benefits from the services.

 

Based on the Company’s evaluations, revenue from Managed Services is reported on a gross basis because the Company has the primary obligation to fulfill the performance obligations and it creates, reviews, and controls the services. The Company takes on the risk of payment to any third-party creators and it establishes the contract price directly with its customers based on the services requested in the statement of work. The deferred revenue as of June 30, 2024, and December 31, 2023, was $0 and included with discontinued operations on balance sheets. As of December 31, 2023, the Company has shifted focus from managed services to HoneyDrip.com platform as such managed services is included in discontinued operations on statement of operations.

 

Subscription-Based Revenue

 

The Company recognizes subscription-based revenue through Honeydrip.com, its social media website, which allows customers to visit the creator’s personal page over the contract period without taking possession of the products or deliverables. Customers incur costs on either a subscription or consumption basis. Revenue provided on a subscription basis is recognized ratably over the contract period and revenue provided on a consumption basis is recognized when the subscriber paid and received their access to the content. The Company reported the subscription-based revenue at net basis since the Company is acting as an agent solely arranging for the third-party creator or influencer to provide the services directly to the self-service customer through the platform or by posting the requested content. In April 2022, the Company has determined it will be recognized at gross because they have control of the services before it is transferred to the end customer. The Company provided services like online chat and other services directly with the end customers by their internal team. Also, the Company will establish the price on behalf of the content creators as disclosed in the agreement. The Company has sole power to change the price based on the market. These are good indicators that the Company controls the specified goods or services before it is transferred to the customer.

 

 

Software Development Costs

 

We apply ASC 350-40, Intangibles—Goodwill and Other—Internal Use Software, in review of certain system projects. These system projects generally relate to software we do not intend to sell or otherwise market. In addition, we apply this guidance to our review of development projects related to software used exclusively for our SaaS subscription offerings. In these reviews, all costs incurred during the preliminary project stages are expensed as incurred. Once the projects have been committed to and it is probable that the projects will meet functional requirements, costs are capitalized. These capitalized software costs are amortized on a project-by-project basis over the expected economic life of the underlying product on a straight-line basis, which is five years. Amortization commences when the software is available for its intended use. Amounts capitalized related to development of internal use software are included in property and equipment, net, on our Consolidated Balance sheets and related depreciation is recorded as a component of amortization of intangible assets and depreciation in our consolidated statements of operations. For the year ended June 30, 2024, and 2023, we capitalized $21,335 and $62,825, respectively, related to internal use software and recorded $66,247 and $61,644 in related amortization expense, respectively. Unamortized costs of capitalized internal use software totaled $404,495 and $445,582 as of June 30, 2024, and December 31, 2023, respectively. As of December 31, 2023, the Company fully impaired developed technology-magiclytics

 

Impairment of Long-Lived Assets

 

Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of and for the six months ended June 30, 2024, and 2023, there was no impairment loss of its long-lived assets.

 

Income Taxes

 

The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized.

 

The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold is recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold is derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense.

 

 

Fair Value of Financial Instruments

 

The carrying value of cash, accounts receivable, other receivable, note receivable, other current assets, accounts payable, and accrued expenses, if applicable, approximate their fair values based on the short-term maturity of these instruments. The carrying amounts of debt were also estimated to approximate fair value.

 

The Company utilizes the methods of fair value (“FV”) measurement as described in ASC 820 to value its financial assets and liabilities. As defined in ASC 820, FV is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in FV measurements, ASC 820 establishes a FV hierarchy that prioritizes observable and unobservable inputs used to measure FV into three broad levels, which are described below:

 

	●	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

Cash, accounts receivable, accounts payable, and accrued expenses and deferred revenue – The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.

 

Convertible notes payable – Convertible promissory notes payable are recorded at amortized cost. The carrying amount approximates their fair value.

 

The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities as their fair values were determined by using the binomial option-pricing model based on various assumptions. The fair value of derivative liability as of June 30, 2024 and December 31, 2023 was $2,175,018 and $873,913, respectively.

 

Stock based Compensation

 

Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award) under ASC 718. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.

 

Related Parties

 

The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 related parties include:

 

a. affiliates of the Company;

 

b. entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825– 10–15, to be accounted for by the equity method by the investing entity;

 

c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management;

 

d. principal owners of the Company;

 

e. management of the Company;

 

 

f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and,

 

g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements is not required in those statements.

 

The disclosures shall include: a. the nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

New Accounting Pronouncements

 

Management does not believe that any recently issued and not adopted and/or effective, accounting pronouncements would have a material effect on the accompanying financial statements.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this quarterly report, is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Our management, with the participation of our principal executive officer and principal financial officer (our “Certifying Officers”), evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2024, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of June 30, 2024, our disclosure controls and procedures were not effective.

 

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

From time to time, we are involved in various claims and legal actions arising in the ordinary course of business. To the knowledge of our management, there are no legal proceedings currently pending against us which we believe would have a material effect on our business, financial position or results of operations and, to the best of our knowledge, there are no such legal proceedings contemplated or threatened.

 

Item 1A. Risk Factors.

 

Not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

For the six months ended June 30, 2024, the Company did not have any issuances pursuant to an exemption from registration as set forth in 506 of Regulation D and Section 4(a)(2) of the Securities Act.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

None.

 

 

Item 6. Exhibits.

 

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

 

Exhibit No.		Document
10.1		Securities Purchase Agreement, entered into on July 11, 2022 and dated as of July 8, 2022, between the registrant and 1800 Diagonal Lending, LLC (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed with the SEC on July 14, 2022).
10.2		Convertible Promissory Note issued on July 11, 2022 and dated as of July 8, 2022, by the registrant in favor of 1800 Diagonal Lending, LLC (incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed with the SEC on July 14, 2022)
10.3		Promissory Note issued on July 12, 2022 by the registrant in favor of Amir Ben-Yohanan (incorporated by reference to Exhibit 10.3 to the registrant’s Current Report on Form 8-K filed with the SEC on July 14, 2022).
10.4†		Clubhouse Media Group, Inc. 2023 Equity Incentive Plan, adopted on July 11, 2022 (incorporated by reference to Exhibit 10.4 to the registrant’s Current Report on Form 8-K filed with the SEC on July 14, 2022).
10.5		Joint Venture Deal Memo, dated July 31, 2022, between the Company and Alden Henri Reiman (incorporated by reference to Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed with the SEC on August 4, 2022).
10.6		Operating Agreement of The Reiman Agency LLC, dated July 31, 2022. (incorporated by reference to Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed with the SEC on August 4, 2022).
10.7		Executive Employment Agreement, dated July 31, 2022, between the Company and Alden Henri Reiman (incorporated by reference to Exhibit 10.3 to the registrant’s Current Report on Form 8-K filed with the SEC on August 4, 2022)
31.1*		Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase
104*		Cover Page Interactive Data File—the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

 

* Filed herewith.

** Furnished herewith.

 

 

SIGNATURES

 

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

 

	CLUBHOUSE MEDIA GROUP, INC.
Date: August 13, 2024	By:	/s/ Amir Ben-Yohanan
	Name:	Amir Ben-Yohanan
	Title:	Chief Executive Officer
		(principal executive officer)
Date: August 13, 2024	By:	/s/ Scott Hoey
	Name:	Scott Hoey
	Title:	Chief Financial Officer
		(principal financial officer and principal accounting officer)

 

 

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, Amir Ben-Yohanan, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 of Clubhouse Media Group, Inc.;

 

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

 

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

 

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

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

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

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 13, 2024

 

/s/ Amir Ben-Yohanan
Amir Ben-Yohanan
Chief Executive Officer
(principal executive officer)

 

 

 

Exhibit 31.2

 

CERTIFICATIONS

 

I, Scott Hoey, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 of Clubhouse Media Group, Inc.;

 

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

 

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

 

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

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

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

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 13, 2024

 

/s/ Scott Hoey
Scott Hoey
Chief Financial Officer
(principal financial officer)

 

 

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Clubhouse Media Group, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024 as filed with the Securities and Exchange Commission (the “Report”), I, Amir Ben-Yohanan, Chief Executive Officer of the Company, and I, Scott Hoey, Chief Financial Officer of the Company, certify that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

 

Date: August 13, 2024

 

/s/ Amir Ben-Yohanan
Chief Executive Officer
(principal executive officer)
/s/ Scott Hoey
Chief Financial Officer
(principal financial officer)

 

 

v3.24.2.u1

Cover - $ / shares	6 Months Ended
	Jun. 30, 2024	Aug. 10, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	333-140645
Entity Registrant Name	Clubhouse Media Group, Inc.
Entity Central Index Key	0001389518
Entity Tax Identification Number	99-0364697
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	3651 Lindell Road
Entity Address, Address Line Two	D517
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89103
City Area Code	(702)
Local Phone Number	479-3016
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,372,179,486
Entity Listing, Par Value Per Share	$ 0.000001

v3.24.2.u1

Consolidated Balance Sheets - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 89,417	$ 125,207
Accounts receivable, net	1,960	14,848
Discontinued operations - current	81,307	199,619
Total current assets	172,684	339,674
Intangibles	404,761	445,582
Discontinued operations - long term	12,861	16,707
Total assets	590,306	801,963
Current liabilities:
Accounts payable and accrued liabilities	2,629,474	2,127,857
Convertible notes payable, net	4,162,778	4,162,778
Shares to be issued	468,042	318,042
Derivative liability	2,175,018	873,913
Discontinued operations - current	570,789	510,173
Total current liabilities	10,006,101	7,992,763
Total liabilities	10,006,101	7,992,763
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred stock, par value $0.001, authorized 50,000,000 shares; 1 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively
Common stock, par value $0.000001, authorized 25,000,000,000 shares; 16,372,179,486 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively	16,373	16,373
Additional paid-in capital	27,662,827	27,662,827
Accumulated deficit	(37,410,841)	(35,184,891)
Total Clubhouse Media stockholders’ equity (deficit)	(9,731,641)	(7,505,691)
Non-controlling interest	315,846	314,891
Total stockholders’ deficit	(9,415,795)	(7,190,800)
Total liabilities and stockholders’ equity (deficit)	$ 590,306	$ 801,963

v3.24.2.u1

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023	Nov. 15, 2022	Jun. 23, 2022	Jun. 13, 2022	Apr. 19, 2022	Jul. 07, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001	$ 0.001				$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000	50,000,000				50,000,000
Preferred stock, shares issued	1	1
Preferred stock, shares outstanding	1	1
Common stock, par value	$ 0.000001	$ 0.000001	$ 0.000001		$ 0.001		$ 0.001
Common stock, shares authorized	25,000,000,000	25,000,000,000	25,000,000,000	8,000,000,000		2,000,000,000	500,000,000
Common stock, shares issued	16,372,179,486	16,372,179,486
Common stock, shares outstanding	16,372,179,486	16,372,179,486

v3.24.2.u1

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Total revenue, net	$ 417,403	$ 347,474	$ 818,949	$ 699,251
Cost of sales	315,079	218,004	588,325	436,892
Gross profit	102,324	129,470	230,624	262,359
Operating expenses:
Advertising expenses	1,196	9,131	3,887	24,174
Selling, general, and administrative	110,201	117,049	198,238	273,799
Salaries & wages	230,712	339,233	462,345	461,130
Professional and consultant fees	10,095	44,005	92,837	73,931
Total operating expenses	352,204	509,418	757,307	833,034
Operating Income (Loss)	(249,880)	(379,948)	(526,683)	(570,675)
Other (income) expenses:
Interest expense, net	114,920	200,026	301,732	371,762
Amortization of debt discounts, net		13,153		140,144
Other (income) expense, net		(1,731)		(15,268)
Gain related to debt activities	71,772		(77)
Change in fair value of derivative liability	(56,279)	(245,343)	1,301,105	1,137,479
Total other (income) expenses	130,413	(33,895)	1,602,760	1,634,117
Income (Loss) before income taxes	(380,293)	(346,053)	(2,129,443)	(2,204,792)
Income tax (benefit) expense
Net income (loss) from continuing operations	(380,293)	(346,053)	(2,129,443)	(2,204,792)
Net income (loss) from discontinued operations - non-controlling interest	(278)	(12,158)	955	(156,277)
Net income (loss) from discontinued operations	(86,314)	(13,711)	(96,507)	(233,172)
Net Income (Loss) from shareholders	$ (466,607)	$ (359,764)	$ (2,225,950)	$ (2,437,964)
Basic weighted average shares outstanding	16,372,179,486	8,480,503,383	16,372,179,486	8,109,652,138
Diluted weighted average shares outstanding	16,372,179,486	8,480,503,383	16,372,179,486	8,109,652,138
Basic - net loss from continuing operations per share	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Diluted - net loss from continuing operations per share	(0.00)	(0.00)	(0.00)	(0.00)
Basic - net loss from discontinued operations per share	(0.00)	(0.00)	(0.00)	(0.00)
Diluted - net loss from discontinued operations per share	(0.00)	(0.00)	(0.00)	(0.00)
Basic - net loss per share	(0.00)	(0.00)	(0.00)	(0.00)
Diluted - net loss per share	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)

v3.24.2.u1

Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2022		$ 6,831	$ 24,744,738	$ (32,814,971)	$ (8,063,402)	$ 385,166	$ (7,678,236)
Balance, shares at Dec. 31, 2022	1	6,830,378,163
Reclass of derivative liability on conversion			189,352		189,352		189,352
Conversion of convertible debt		$ 1,432	182,822		184,254		184,254
Conversion of convertible debt, shares		1,431,944,776
Net Income (Loss)				(2,078,200)	(2,078,200)	(144,119)	(2,222,319)
Balance at Mar. 31, 2023		$ 8,263	25,116,912	(34,893,171)	(9,767,996)	241,047	(9,526,949)
Balance, shares at Mar. 31, 2023	1	8,262,322,939
Balance at Dec. 31, 2022		$ 6,831	24,744,738	(32,814,971)	(8,063,402)	385,166	(7,678,236)
Balance, shares at Dec. 31, 2022	1	6,830,378,163
Balance at Dec. 31, 2023		$ 16,373	27,662,827	(35,184,891)	(7,505,691)	314,891	(7,190,800)
Balance, shares at Dec. 31, 2023	1	16,372,179,486
Balance at Mar. 31, 2023		$ 8,263	25,116,912	(34,893,171)	(9,767,996)	241,047	(9,526,949)
Balance, shares at Mar. 31, 2023	1	8,262,322,939
Net Income (Loss)				(359,764)	(359,764)	(12,158)	(371,922)
Shares issued for debt conversions		$ 378	33,904		34,282		34,282
Shares issued for debt conversions, shares		377,620,000
Balance at Jun. 30, 2023		$ 8,641	25,150,816	(35,252,935)	(10,093,478)	228,889	(9,864,589)
Balance, shares at Jun. 30, 2023	1	8,639,942,939
Balance at Dec. 31, 2023		$ 16,373	27,662,827	(35,184,891)	(7,505,691)	314,891	(7,190,800)
Balance, shares at Dec. 31, 2023	1	16,372,179,486
Net Income (Loss)				(1,759,343)	(1,759,343)	1,233	(1,758,110)
Balance at Mar. 31, 2024		$ 16,373	27,662,827	(36,944,234)	(9,265,034)	316,124	(8,948,910)
Balance, shares at Mar. 31, 2024	1	16,372,179,486
Net Income (Loss)				(466,607)	(466,607)	(278)	(466,885)
Balance at Jun. 30, 2024		$ 16,373	$ 27,662,827	$ (37,410,841)	$ (9,731,641)	$ 315,846	$ (9,415,795)
Balance, shares at Jun. 30, 2024	1	16,372,179,486

v3.24.2.u1

Consolidated Statements of Cash Flow (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income (loss) from continuing operations	$ (2,129,443)	$ (2,204,792)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization	65,981	61,644
Interest expense - amortization of debt discounts		140,114
Stock compensation expense	150,000	150,000
Change in fair value of derivative liability	1,301,105	1,137,479
Gain related to debt activities	(77)	(15,268)
Net changes in operating assets & liabilities:
Accounts receivable	4,889	11,707
Accounts payable, accrued liabilities, due to affiliates, and other long-term liabilities	503,926	720,325
Net cash used in operating activities from continuing operations	(103,619)	1,209
Net cash (used in ) and provided by operating activities from discontinued operations	(26,011)	(258,074)
Net cash used in operating activities	(129,630)	(256,865)
Cash flows from investing activities:
Purchases of intangible assets	(25,160)	(62,825)
Net cash used in investing activities from continuing operations	(25,160)	(62,825)
Net cash used in investing activities from discontinued operations
Net cash used in investing activities	(25,160)	(62,825)
Cash flows from financing activities:
Borrowings from related parties	119,000	1,060,000
Net cash provided by financing activities from continuing operations	119,000	396,395
Net cash provided by financing activities from discontinued operations-RP
Net cash provided by financing	119,000	396,395
Net increase in cash and cash equivalents	(35,790)	76,705
Cash and cash equivalents at beginning of period	125,207	57,713
Cash and cash equivalents at end of period	89,417	134,418
Supplemental disclosure of cash flow information
Interest
Income taxes
Supplemental disclosure of non-cash investing and financing Activities:
Shares issued for conversion from convertible note payable		204,649
Reclass of derivative liability to additional paid in capital		203,239
Related Party [Member]
Cash flows from financing activities:
Repayment to convertible notes payable		(396,667)
Nonrelated Party [Member]
Cash flows from financing activities:
Repayment to convertible notes payable		$ (266,938)

v3.24.2.u1

ORGANIZATION AND OPERATIONS	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	NOTE 1 - ORGANIZATION AND OPERATIONS   Clubhouse Media Group, Inc. (formerly known as Tongji Healthcare Group, Inc. or the “Company”) was incorporated under the laws of the State of Nevada on December 19, 2006 by Nanning Tongji Hospital, Inc. (“NTH”). On December 20, 2006, Tongji, Inc., a wholly owned subsidiary of the Company, was incorporated in the State of Colorado. Tongji, Inc. was later dissolved on March 25, 2011.   NTH was established in Nanning in the province of Guangxi of the People’s Republic of China (“PRC” or “China”) by Nanning Tongji Medical Co. Ltd. and an individual on October 30, 2003.   NTH is a designated hospital for medical insurance in the city of Nanning and Guangxi province. NTH specializes in the areas of internal medicine, surgery, gynecology, pediatrics, emergency medicine, ophthalmology, medical cosmetology, rehabilitation, dermatology, otolaryngology, traditional Chinese medicine, medical imaging, anesthesia, acupuncture, physical therapy, health examination, and prevention.   On December 27, 2006, Tongji, Inc. acquired 100% of the equity in NTH pursuant to an Agreement and Plan of Merger, pursuant to which NTH became a wholly owned subsidiary of Tongji, Inc. Pursuant to the Agreement and Plan of Merger, the Company issued 15,652,557 shares of common stock to the stockholders of NTH in exchange for 100% of the issued and outstanding shares of common stock of NTH. The acquisition of NTH was accounted for as a reverse acquisition under the purchase method of accounting since the stockholders of NTH obtained control of the entity. Accordingly, the reorganization of the two companies was recorded as a recapitalization of NTH, with NTH being treated as the continuing operating entity. The Company, through NTH, thereafter operated the hospital until the Company eventually sold NTH, as described below.   Effective December 31, 2017, under the terms of a Bill of Sale, the Company agreed to sell, transfer convey and assign forever all of its rights, title and interest in its equity ownership interest in NTH to Placer Petroleum Co., LLC. Pursuant to the Bill of Sale, consideration for this sale, transfer conveyance and assignment is Placer Petroleum Co., LLC assuming all assets and liabilities of NTH as of December 31, 2017. Thereafter, the Company had minimal operations.   On May 20, 2019, pursuant to Case Number A-19-793075-P, Nevada’s 8th Judicial District, Business Court entered an Order Granting Application of Joseph Arcaro as Custodian of Tongji Healthcare Group, Inc. pursuant to Nevada Revised Statutes (“NRS”) 78.347(1)(b), pursuant to which Mr. Arcaro was appointed custodian of the Company and given authority to reinstate the Company with the State of Nevada under NRS 78.347.   On May 23, 2019, Mr. Arcaro filed a Certificate of Reinstatement of the Company with the Secretary of State of the State of Nevada. In addition, on May 23, 2019, Mr. Arcaro filed an Annual List of the Company with the Secretary of State of the State of Nevada, designating himself as President, Secretary, Treasurer and Director of the Company for the filing period of 2017 to 2019.   On May 29, 2020, Mr. Arcaro, through his ownership of Algonquin Partners Inc. (“Algonquin”), owner 65% of the Company’s common stock, entered into a Stock Purchase Agreement by and among West of Hudson Group, Inc. (“WOHG”), the Company, Algonquin, and Mr. Arcaro. The Stock Purchase Agreement, as subsequently amended, is referred to herein as the “SPA.” Pursuant to the terms of the SPA, WOHG agreed to purchase, and Algonquin agreed to sell 30,000,000 shares of the Company’s common stock in exchange for payment by WOHG to Algonquin of $240,000 (the “Stock Purchase”). The Stock Purchase closed on June 18, 2020, resulting in a change of control of the Company. Mr. Arcaro resigned from any and all officer and director positions with the Company.   On July 7, 2020, the Company increased the authorized capital stock of the Company to 550,000,000, comprised of 500,000,000 shares of common stock, par value $0.001, and 50,000,000 shares of preferred stock, par value $0.001.   The Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada on June 13, 2022 for the purpose of amending the Articles of Incorporation of the Company to reduce the par value of the common stock of the Company, par value $0.001 per share, from $0.001 to $0.000001.     West of Hudson Group, Inc. (“WOHG”) was incorporated in the State of Delaware on May 19, 2020 and owned 100% of WOH Brands, LLC (“WOH”), Oopsie Daisy Swimwear, LLC (“Oopsie”), and DAK Brands, LLC (“DAK”), which were incorporated in the State of Delaware on May 13, 2020.   Doiyen LLC (“Doiyen”), formerly known as WHP Entertainment LLC was incorporated in the State of California on January 2, 2020 and renamed to Doiyen LLC in July 7, 2020 and Doiyen is 100% owned by WOHG.   The Company is an entertainment company engaged in the sale of own brand products, e-commerce platform advertising, and promotion for other companies on their social media accounts. As of December 31, 2023, the Company changed focuses from brand deal to e-commerce platform as such Doiyen LLC is included within discontinued operations.   On November 12, 2020, the Company and WOHG entered into the Merger Agreement, and WOHG thereafter became a wholly owned subsidiary of the Company. WOHG was determined to be the accounting acquirer in the Merger based upon the terms of other factors, including: (1) the security holders owned approximately 50.54% of the Company’s issued and outstanding common stock as of immediately after the closing of the Merger. Following the completion of the Merger, the Company changed its name from Tongji Healthcare Group, Inc. to Clubhouse Media Group, Inc. The Merger was accounted for as a reverse-merger and recapitalization in accordance with accounting principles generally accepted in the United States of America (“GAAP”). WOHG was the acquirer for financial reporting purposes and Clubhouse Media Group, Inc. was the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements prior to the Merger will be those of WOHG and will be recorded at the historical cost basis of WOHG. The consolidated financial statements after completion of the Merger include the assets and liabilities of the Company and WOHG, historical operations of WOHG and operations of the Company from the closing date of the Merger. Common stock and the corresponding capital amounts of the Company pre-merger have been retroactively restated as capital stock shares reflecting the exchange ratio in the Merger. This was a common control transaction, so all amounts were based on historical cost and no goodwill was recorded.   Since September 2022, the Company launched its own subscription-based site HoneyDrip.com, which provides a digital space for creators to share unique content with their subscribers.   The Company has changed focuses from brand deal to focus efforts on Honeydrip platform since December 31, 2023.

v3.24.2.u1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Basis of presentation   These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented.   Principles of Consolidation   The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The Company includes within the consolidated financial statements the joint venture, see Note 11, due to ability to exert control over the financial and operating polices which includes ownership of equal to or greater than 50% of the joint venture.   Use of Estimates   In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, useful life of fixed assets, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, and assumptions used in assessing impairment of long-lived assets. Actual results could differ from those estimates.     Reclassification   Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. These reclassifications had no effect on our previously reported results of operations or accumulated deficit.   Business Combination   The Company applies the provisions of the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date, fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations.   Cash and Cash Equivalents   Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents are on deposit with financial institutions without any restrictions. The Company maintains its cash with high credit quality financial institutions; at times, such balances with any one financial institution may exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits.   Advertising   Advertising costs are expensed when incurred and are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations. We incurred advertising expenses of $3,887 and $24,174 for the six months ended June 30, 2024, and 2023, respectively.   Accounts Receivable   The Company’s accounts receivable arises from providing services. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale.   The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Amounts determined to be uncollectible are charged or written-off against the reserve. As of June 30, 2024, and December 31, 2023, there were $0 and $79, respectively, for bad debt allowance for accounts receivable.   As of June 30, 2024, and December 31, 2023, there were $2,085 and $2,956, respectively, for bad debt allowance for accounts receivable included with discontinued operations on balance sheets.     Property and equipment, net   Plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of property, plant and equipment and are calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:   SCHEDULE OF PROPERTY AND EQUIPMENT, NET ESTIMATED USEFUL LIVES Classification   Useful Life Equipment   3 years   Lease   The Company elected to use the short-term exception and does not record assets/liabilities for short term leases as of June 30, 2024 and December 31, 2023.   Revenue Recognition   In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).   Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company recognized revenue from providing temporary and permanent staffing solutions and sale of consumer products.   Managed Services Revenue   The Company generates revenue from its managed services when a marketer (typically a brand, agency, or partner) pays the Company to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).   The Company maintains separate arrangements with each marketer and content creator either in the form of a master agreement or terms of service, which specify the terms of the relationship and access to its platforms, or by statement of work, which specifies the price and the services to be performed, along with other terms. The transaction price is determined based on the fixed fee stated in the statement of work and does not contain variable consideration. Marketers who contract with the Company to manage their advertising campaigns or custom content requests may prepay for services or request credit terms. The agreement typically provides for either a non-refundable deposit, or a cancellation fee if the agreement is canceled by the customer prior to completion of services. Billings in advance of completed services are recorded as a contract liability until earned. The Company assesses collectability based on a number of factors, including the creditworthiness of the customer and payment and transaction history.   For Managed Services Revenue, the Company enters into an agreement to provide services that may include multiple distinct performance obligations in the form of: (i) an integrated marketing campaign to provide influencer marketing services, which may include the provision of blogs, tweets, photos or videos shared through social network offerings and content promotion, such as click-through advertisements appearing in websites and social media channels; and (ii) custom content items, such as a research or news article, informational material or videos. Marketers typically purchase influencer marketing services for the purpose of providing public awareness or advertising buzz regarding the marketer’s brand and they purchase custom content for internal and external use. The Company may provide one type or a combination of all types of these performance obligations on a statement of work for a lump sum fee. Revenue is accounted for when the performance obligation has been satisfied depending on the type of service provided. The Company views its obligation to deliver influencer marketing services, including management services, as a single performance obligation that is satisfied at the time the customer receives the benefits from the services.     Based on the Company’s evaluations, revenue from Managed Services is reported on a gross basis because the Company has the primary obligation to fulfill the performance obligations and it creates, reviews and controls the services. The Company takes on the risk of payment to any third-party creators and it establishes the contract price directly with its customers based on the services requested in the statement of work. The deferred revenue as of June 30, 2024, and December 31, 2023, was $0 and included with discontinued operations on balance sheets. As of December 31, 2023, the Company has shifted focus from managed services to HoneyDrip.com platform as such managed services is included in discontinued operations on statement of operations.   Subscription-Based Revenue   The Company recognizes subscription-based revenue through Honeydrip.com, its social media website, which allows customers to visit the creator’s personal page over the contract period without taking possession of the products or deliverables. Customers incur costs on either a subscription or consumption basis. Revenue provided on a subscription basis is recognized ratably over the contract period and revenue provided on a consumption basis is recognized when the subscriber paid and received their access to the content. The Company reported the subscription-based revenue at net basis since the Company is acting as an agent solely arranging for the third-party creator or influencer to provide the services directly to the self-service customer through the platform or by posting the requested content. In April 2022, the Company has determined it will be recognized at gross because they have control of the services before it is transferred to the end customer. The Company provided services like online chat and other services directly with the end customers by their internal team. Also, the Company will establish the price on behalf of the content creators as disclosed in the agreement. The Company has sole power to change the price based on the market. These are good indicators that the Company controls the specified goods or services before it is transferred to the customer.   Software Development Costs   We apply ASC 350-40, Intangibles—Goodwill and Other—Internal Use Software, in review of certain system projects. These system projects generally relate to software we do not intend to sell or otherwise market. In addition, we apply this guidance to our review of development projects related to software used exclusively for our SaaS subscription offerings. In these reviews, all costs incurred during the preliminary project stages are expensed as incurred. Once the projects have been committed to and it is probable that the projects will meet functional requirements, costs are capitalized. These capitalized software costs are amortized on a project-by-project basis over the expected economic life of the underlying product on a straight-line basis, which is five years. Amortization commences when the software is available for its intended use. Amounts capitalized related to development of internal use software are included in property and equipment, net, on our Consolidated Balance sheets and related depreciation is recorded as a component of amortization of intangible assets and depreciation in our consolidated statements of operations. For the six months ended June 30, 2024, and 2023, we capitalized $21,335 and $62,825, respectively, related to internal use software and recorded $66,247 and $61,644 in related amortization expense, respectively. Unamortized costs of capitalized internal use software totaled $404,495 and $445,582 as of June 30, 2024, and December 31, 2023, respectively. As of December 31, 2023, the Company fully impaired developed technology-magiclytics.   Goodwill Impairment   We test goodwill at least annually for impairment at the reporting unit level. We recognize an impairment charge if the carrying amount of a reporting unit exceeds its fair value. When a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained.   For other intangible assets that are not deemed indefinite-lived, cost is generally amortized on a straight-line basis over the asset’s estimated economic life, except for individually significant customer-related intangible assets that are amortized in relation to total related sales. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to estimated fair value based on either discounted cash flows or appraised values. The Company impaired $0 and $0 of goodwill for the six months ended June 30, 2024 and 2023, respectively.     Impairment of Long-Lived Assets   Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.   Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of and for the six months ended June 30, 2024, and 2023, there were no impairment loss of its long-lived assets.   Income Taxes   The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized.   The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold is recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold is derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense.   Commitments and Contingencies   The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.   In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.   If the assessment of a contingency indicates it is probable a material loss was incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.   Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.     Concentration of Credit Risk   Financial instruments that potentially subject the Company to credit risk consist primarily of accounts receivable. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.   Basic Income (Loss) Per Share   Under the provisions of ASC 260, “Earnings per Share,” basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. Potential common shares consist of the convertible promissory notes payable as of June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, there were 7,435,097,663 and 8,865,097,663 potential shares issuable upon conversion of convertible notes payable. As of June 30, 2024 and 2023, there were approximately 165,077 potential shares issuable upon conversion of warrants. All potential shares from convertible notes payable and warrants were considered anti-dilutive as of June 30, 2024 and December 31, 2023.   The table below presents the computation of basic and diluted earnings per share for the three months ended June 30, 2024 and 2023:   SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNING PER SHARE     For the three months ended June 30, 2024     For the three months ended June 30, 2023       (Unaudited)     (Unaudited)   Numerator:                 Net income (loss) from continuing operations   $ (380,293 )   $ (346,053 ) Denominator:                 Weighted average common shares outstanding—basic     16,372,179,486       8,480,503,383   Dilutive common stock equivalents     -       -   Weighted average common shares outstanding—diluted     16,372,179,486       8,480,503,383   Net loss per share:                 Basic   $ (0.00 )   $ (0.00 ) Diluted   $ (0.00 )   $ (0.00 )   The table below presents the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:       For the six months ended June 30, 2024     For the six months ended June 30, 2023       (Unaudited)     (Unaudited)   Numerator:                 Net income (loss) from continuing operations   $ (2,129,443 )   $ (2,204,792 ) Denominator:                 Weighted average common shares outstanding—basic     16,372,179,486       8,109,652,138   Dilutive common stock equivalents     -       -   Weighted average common shares outstanding—diluted     16,372,179,486       8,109,652,138   Net loss per share:                 Basic   $ (0.00 )   $ (0.00 ) Diluted   $ (0.00 )   $ (0.00 )     Stock based Compensation   Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award) under ASC 718. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.   Fair Value of Financial Instruments   FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.   Fair Value Measurements   The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:     ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.   ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.   ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.   Cash, accounts receivable, accounts payable, and accrued expenses and deferred revenue – The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.   Convertible notes payable – Convertible promissory notes payable are recorded at amortized cost. The carrying amount approximates their fair value.   The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities as their fair values were determined by using the binomial option-pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.   The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2024 and December 31, 2023.   SCHEDULE OF ASSETS AND LIABILITIES UNDER FAIR VALUE HIERARCHY     Fair Value     Fair Value Measurements at       As of     June 30, 2024   Description   June 30, 2024     Using Fair Value Hierarchy             Level 1     Level 2     Level 3   Derivative liability   $ 2,175,018     $ -     $ -     $ 2,175,018                                     Total   $ 2,175,018     $ -     $ -     $ 2,175,018           Fair Value     Fair Value Measurements at       As of     December 31, 2023   Description   December 31, 2023     Using Fair Value Hierarchy             Level 1     Level 2     Level 3   Derivative liability   $ 873,913     $ -     $ -     $ 873,913                                     Total   $ 873,913     $ -     $ -     $ 873,913     Derivative instruments   The fair value of derivative instruments is recorded and shown separately under liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under other (income) expense.   Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives under ASC 815. 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 in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses binomial 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.   In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Topic 815): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 requires companies to measure conversion of debt into equity that contain derivatives with difference as a gain or loss. ASU 2020-06 is effective for fiscal years beginning after December 15, 2022, including those interim periods within those fiscal years. The Company adopted and follows ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity as of December 31, 2023.   Beneficial Conversion Features   If a conversion features did not meet the definition of derivative liability under ASC 815, the Company evaluates the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the note. If the effective conversion price was less than the market value of underlying common stock at the inception of the convertible promissory note, the Company recorded the difference as debt discounts and amortized over the life of the notes using the effective interest method.   Related Parties   The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 related parties include:   a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825– 10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.     New Accounting Pronouncements   Management does not believe that any recently issued and not adopted and/or effective, accounting pronouncements would have a material effect on the accompanying financial statements.

v3.24.2.u1

GOING CONCERN	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 3 – GOING CONCERN   The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.   As reflected in the accompanying financial statements, the Company had a net loss of $(2,225,950) for the six months ended June 30, 2024, negative working capital of $(9,833,417) as of June 30, 2024, and stockholder’s deficit of $(9,415,795). These factors among others raise substantial doubt about the Company’s ability to continue as a going concern.   While the Company is attempting to generate additional revenues, the Company’s cash position may not be significant enough to support the Company’s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues.   The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

v3.24.2.u1

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 4 – PROPERTY AND EQUIPMENT   Fixed assets, net consisted of the following:   SCHEDULE OF FIXED ASSET, NET     June 30, 2024     December 31, 2023     Estimated Useful Life                   Equipment   $ 118,638     $ 118,638     3 years Less: accumulated depreciation and amortization     (105,777 )     (101,931 )     Property, plant, and equipment, net,   $ 12,861     $ 16,707         The above fixed assets are included in discontinued operations on the balance sheets. Depreciation expenses were $3,701 and $5,991 for the three months ended June 30, 2024 and 2023, respectively, and included with discontinued operations on the statement of operations. Depreciation expenses were $3,847 and $14,921 for the six months ended June 30, 2024 and 2023, respectively, and included with discontinued operations on the statement of operations.

v3.24.2.u1

INTANGIBLES	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLES	NOTE 5 – INTANGIBLES   As of June 30, 2024 and December 31, 2023, the Company had intangible assets of $404,761 and $445,582 from and after the acquisition of Magiclytics in February 2021. It is a platform that is internally developed for revenue prediction from influencer collaboration and our digital platform Honeydrip.com.     The following table sets forth the Company’s infinite and finite-lived intangible assets resulting from business acquisitions and other purchases, which continue to be amortized:   SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS ACQUIRED AS PART OF BUSINESS COMBINATION     Weighted     June 30, 2024           December 31, 2023       Average Useful Life (in Years)     Gross Carrying Amount     Accumulated Amortization     Net Carrying Amount     Gross Carrying Value     Accumulated Amortization     Net Carrying Amount   Developed technology - Magiclytics        5     $ 672,903     $ 268,142     $ 404,761     $ 647,743     $ 202,161     $ 445,582   Developed technology - Magiclytics     -       -       -       -       -       -       -               $ 672,903     $ 268,142     $ 404,761     $ 647,743     $ 202,161     $ 445,582     Amortization expenses were $33,391 and $31,502 for the three months ended June 30, 2024 and 2023, respectively. Amortization expenses were $65,981 and $61,643 for the three months ended June 30, 2024 and 2023, respectively.

v3.24.2.u1

ACCOUNTS PAYABLE AND ACCRUED LIABILITES	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITES	NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LIABILITES   Accrued liabilities at June 30, 2024 and 2022 consist of the following:   SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES     June 30, 2024     December 31, 2023   Accounts payable   $ 10,051     $ 9,747   Accrued payroll     570,000       370,000   Accrued interest     1,928,323       1,626,590   Other     121,100       121,520   Accounts payable and accrued liabilities   $ 2,629,474     $ 2,127,857

v3.24.2.u1

CONVERTIBLE NOTES PAYABLE	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
CONVERTIBLE NOTES PAYABLE	NOTE 7 – CONVERTIBLE NOTES PAYABLE   Convertible Promissory Note – GS Capital Partners #2   On February 19, 2021, the Company entered into another securities purchase agreement with GS Capital (the “GS Capital #2”), pursuant to which, on same date, the Company issued a convertible promissory note (the “GS Capital #2 Note”) to GS Capital the aggregate principal amount of $577,778 for a purchase price of $520,000, reflecting a $57,778 original issue discount, and in connection therewith, sold to GS Capital 100,000 shares of Company’s common stock, par value $0.001 per share at a purchase price of $100, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $10,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.   The GS Capital #2 Note has a maturity date of February 19, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital #2 Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.     The GS Capital #2 Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the Securities and Exchange Commission (“SEC”) qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act of 1933, as amended (the “Regulation A Offering”). At such time, the GS Capital #2 Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.   The $57,778 original issue discounts, the fair value of 100,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discounts at the inception date of this convertible promissory note were $577,778.   Convertible Promissory Note – New GS Note #2   On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to cancel the conversion exercised in the quarter ended June 30, 2021.   On June 29, 2022, the “Company entered into an Exchange Agreement (the “Exchange Note”) with GS Capital. The Exchange Note amended and restated in its entirety the previous Note Purchase Agreement between the same parties. The Exchange Note replaces the Note Purchase Agreement in its entirety, which was a promissory note carrying an outstanding amount of $577,778. The Exchange Note is thus a new note in the amount of $635,563.48, with a conversion price equal to 85% of the closing per share trading price of the Company’s shares of common stock, $0.000001 par value per share (“Common Stock”) on the last trading day prior to the delivery of the notice of conversion, as reported on the National Quotations Bureau OTC Market exchange which the Company’s shares are traded.   The change in conversion features were recorded as loss on debt extinguishment of $188,771 and recognition of derivative liability of $416,588 as of June 30, 2022.   GS Capital converted $20,000 of principal amount and $4,662 accrued interest to 296,380,352 common shares in the quarter ended December 31, 2023. It further converted $421,063 of the principal amount and $4,690 accrued interest to 378,633,891 common shares in the quarter ended September 30, 2022. It further converted $65,000 of principal to 481,221,646 common shares in the first quarter of 2023. The balance of the GS Capital #2 Note as of June 30, 2024, was $0.   Convertible Promissory Note – GS Capital Partners #3   On March 16, 2022, the Company entered into another securities purchase agreement with GS Capital (the “GS Capital #3”), pursuant to which, on same date, the Company issued a convertible promissory note (the “GS Capital #3 Note”) to GS Capital the aggregate principal amount of $577,778 for a purchase price of $520,000, reflecting a $57,778 original issue discount, and in connection therewith, sold to GS Capital 100,000 shares of Company’s common stock, par value $0.000001 per share at a purchase price of $100, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $10,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.   The GS Capital #3 Note has a maturity date of March 22, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital #3 Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.   The GS Capital #3 Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned Regulation A Offering. At such time, the GS Capital #3 Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.     The $57,778 original issue discounts, the fair value of 100,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discounts at the inception date of this convertible promissory note were $577,778.   On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to September 22, 2022.   The balance of the GS Capital #3 Note as of June 30, 2024 and December 31, 2023 was $577,778 and $577,778, respectively. The Company is currently in default of the GS Capital #3 Note.   Convertible Promissory Note – GS Capital Partners #4   On April 1, 2021, the Company entered into another securities purchase agreement with GS Capital (the “GS Capital #4”), pursuant to which, on same date, the Company issued a convertible promissory note to GS Capital the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount, and in connection therewith, sold to GS Capital 45,000 shares of Company’s common stock, par value $0.001 per share at a purchase price of $45, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $10,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.   The GS Capital Note #4 has a maturity date of April 1, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.   The GS Capital Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.   The $50,000 original issue discounts, the fair value of 45,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000.   On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to October 1, 2022.   The balance of the GS Capital Note #4 as of June 30, 2024 and December 31, 2023 was $550,000 and $550,000, respectively. The Company is currently in default of the GS Capital #4 Note.   Convertible Promissory Note – GS Capital Partners #5   On April 29, 2021, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with GS Capital, pursuant to which, on same date, the Company issued a convertible promissory note to GS Capital in the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount (the “GS Capital Note #5”) and, in connection therewith, sold to GS Capital 125,000 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at a purchase price of $125, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $5,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.     The April 2021 GS Capital Note #5 has a maturity date of April 29, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital Note #5, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.   The GS Capital Note #5 (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note #5 (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.   The $50,000 original issue discounts, the fair value of 125,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000.   On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to October 29, 2022.   The balance of the GS Capital Note #5 as of June 30, 2024 and December 31, 2023 was $550,000 and $550,000, respectively.   Convertible Promissory Note – GS Capital Partners #6   On June 3, 2021, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with GS Capital, pursuant to which, on same date, the Company issued a convertible promissory note to GS Capital in the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount (the “GS Capital Note #6”) and, in connection therewith, sold to GS Capital 85,000 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at a purchase price of $85, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed GS Capital the sum of $5,000 for GS Capital’s costs in completing the transaction, which amount GS Capital withheld from the total purchase price paid to the Company.   The GS Capital Note #6 has a maturity date of June 3, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the GS Capital Note #6, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.   The GS Capital Note #6 (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note #6 (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.   The $50,000 original issue discounts, the fair value of 85,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000.   On November 26, 2021, the Company entered into an Amendment and Restructuring Agreement (the “Restructuring Agreement”) with GS Capital Partners, LLC to extend the maturity to December 3, 2022.     The balance of the GS Capital Note #6 as of June 30, 2024 and December 31, 2023 was $550,000 and $550,000, respectively. The Company is currently in default of the GS Capital #6 Note.   Convertible Promissory Note – Eagle Equities LLC   On April 13, 2021, the Company entered into a securities purchase agreement (the “Eagle SPA”) with Eagle Equities LLC (“Eagle Equities”), pursuant to which, on same date, the Company issued a convertible promissory note to Eagle Equities in the aggregate principal amount of $1,100,000 for a purchase price of $1,000,000, reflecting a $100,000 original issue discount (the “Eagle Equities Note”), and, in connection therewith, sold to Eagle Equities 165,000 shares of Company’s common stock, par value of $0.001 per share (the “Company Common Stock”) at a purchase price of $165.00, representing a per share price of $0.001 per share. In addition, at the closing of this sale, the Company reimbursed Eagle Equities the sum of $10,000 for Eagle Equities’ costs in completing the transaction, which amount Eagle Equities withheld from the total purchase price paid to the Company.   The Eagle Equities Note has a maturity date of April 13, 2022 and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than upon the circumstances set forth in the Eagle Equities Note – specifically, if (i) the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act; and (ii) the Company receives $3,500,000 in net proceeds from such Regulation A Offering, then Company must repay the principal amount and any accrued and unpaid interest on the Eagle Equities Note within three (3) business days from the date of such occurrence. The Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.   The Eagle Equities Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at Eagle Equities’ election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the Eagle Equities Note (and the principal amount and any accrued and unpaid interest) will be convertible in restricted shares of Company Common Stock at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by Eagle Equities on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price. Alternatively, if the SEC has not qualified the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act by October 10, 2021, and Eagle Equities Note has not yet been fully repaid, then Eagle Equities will have the right to convert the Eagle Equities Note (and the principal amount and any accrued and unpaid interest) into restricted shares of Company Common Stock at a conversion price of $6.50 per share (subject to customary adjustments for any stock splits, etc., which occur following April 13, 2021).   The $100,000 original issue discounts, the fair value of 165,000 shares issued, and the beneficial conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $1,100,000.   The balance of the Eagle Equities Note as of June 30, 2024 and December 31, 2023 was $1,100,000, respectively. The Company is currently in default of the Eagle Equities Note.   Convertible Promissory Note – Chris Etherington   On August 27, 2021, the Company entered into a note purchase agreement (the “Chris Etherington Note Purchase Agreement”) with Chris Etherington, with an effective date of August 26, 2021, pursuant to which, on same date, the Company issued a convertible promissory note to Mr. Etherington in the aggregate principal amount of $165,000 for a purchase price of $150,000, reflecting a $15,000 original issue discount (the “Chris Etherington Note”) and, in connection therewith, issued to Mr. Etherington a Warrant to purchase 37,500 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at an exercise price of $2.00 per share, subject to adjustment (the “Chris Etherington Warrant”). In addition, in connection with the Chris Etherington Note Purchase Agreement, the Company entered into a Security Agreement on same date with Mr. Etherington, pursuant to which the Company’s obligations under the Chris Etherington Note were secured by a first priority lien and security interest on all of the assets of the Company (the “Chris Etherington Security Agreement”). While each of the Chris Etherington Warrant, Security Agreement, Note, and Note Purchase Agreement have an effective date and/or effective issue date of August 26, 2021, each was entered into and/or issued on August 27, 2021.     The Chris Etherington Note has a maturity date of August 26, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the Chris Etherington Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.   The Chris Etherington Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of Company Common Stock at any time following August 26, 2021, until the note is repaid. The conversion price per share of Common Stock shall initially mean the lesser of (i) $1.00 or (ii) 75% of the lowest daily volume weighted average price of the Common Stock during the 20 Trading Days (as defined in the Chris Etherington Note) immediately preceding the date of the respective conversion. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.   The Chris Etherington Note contains customary events of default, including, but not limited to:     ● if the Company fails to pay the then-outstanding principal amount and accrued interest on the Chris Etherington Note on any date any such amounts become due and payable, and any such failure is not cured within three business days of written notice thereof by Mr. Etherington: or   ● the Company fails to remain compliant with the Depository Trust Company (“DTC”), thus incurring a “chilled” status with DTC; or   ● any trading suspension is imposed by the SEC under Section 12(j) or Section 12(k) of the Exchange Act; or   ● the occurrence of any delisting of the Company Common Stock from any securities exchange on which the Company Common Stock is listed or suspension of trading of the Company Common Stock on the OTC Markets.   If an event of default has occurred and is continuing, Mr. Etherington may declare all or any portion of the then-outstanding principal amount of the Chris Etherington Note, together with all accrued and unpaid interest thereon, due and payable, and the Chris Etherington Note shall thereupon become immediately due and payable in cash and Mr. Etherington will also have the right to pursue any other remedies that Mr. Etherington may have under applicable law. In the event that any amount due under the Chris Etherington Note is not paid as and when due, such amounts shall accrue interest at the rate of 18% per year, simple interest, non-compounding, until paid.   The $15,000 original issue discounts, the fair value of 37,500 warrants issued, and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $165,000. For the excess amount of derivative liability, the Company recorded accretion expense of $160,538 at the inception date of this note.   The balance of the Chris Etherington Note as of June 30, 2024 and December 31, 2023 was $165,000, respectively. The Company is currently in default of the Chris Etherington Note.   Convertible Promissory Note – Rui Wu   On August 27, 2021, the Company entered into a note purchase agreement (the “Rui Wu Note Purchase Agreement”) with Rui Wu, an individual (“Rui Wu”), with an effective date of August 26, 2021, pursuant to which, on same date, the Company issued a convertible promissory note to Rui Wu in the aggregate principal amount of $550,000 for a purchase price of $500,000, reflecting a $50,000 original issue discount (the “Rui Wu Note”) and, in connection therewith, issued to Rui Wu a Warrant to purchase 125,000 shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at an exercise price of $2.00 per share, subject to adjustment (the “Rui Wu Warrant”). In addition, in connection with the Rui Wu Note Purchase Agreement, the Company entered into a Security Agreement on same date with Rui Wu, pursuant to which the Company’s obligations under the Rui Wu Note were secured by a first priority lien and security interest on all of the assets of the Company (the “Rui Wu Security Agreement”). While each of the Rui Wu Warrant, Security Agreement, Note, and Note Purchase Agreement have an effective date and/or effective issue date of August 26, 2021, each was entered into and/or issued on August 27, 2021.   The Rui Wu Note has a maturity date of August 26, 2022, and bears interest at 10% per year. No payments of the principal amount or interest are due prior to the maturity date other than as specifically set forth in the Rui Wu Note, and the Company may prepay all or any portion of the principal amount and any accrued and unpaid interest at any time without penalty.     The Rui Wu Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of Company Common Stock at any time following August 26, 2021, until the note is repaid. The conversion price per share of Common Stock shall initially mean the lesser of (i) $1.00 or (ii) 75% of the lowest daily volume weighted average price of the Common Stock during the 20 Trading Days (as defined in the Rui Wu Note) immediately preceding the date of the respective conversion. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.   The Rui Wu Note contains customary events of default, including, but not limited to:     ● if the Company fails to pay the then-outstanding principal amount and accrued interest on the Rui Wu Note on any date any such amounts become due and payable, and any such failure is not cured within three business days of written notice thereof by Rui Wu: or   ● the Company fails to remain compliant with the Depository Trust Company (“DTC”), thus incurring a “chilled” status with DTC; or   ● any trading suspension is imposed by the SEC under Section 12(j) or Section 12(k) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); or   ● the occurrence of any delisting of the Company Common Stock from any securities exchange on which the Company Common Stock is listed or suspension of trading of the Company Common Stock on the OTC Markets.   If an event of default has occurred and is continuing, Rui Wu may declare all or any portion of the then-outstanding principal amount of the Rui Wu Note, together with all accrued and unpaid interest thereon, due and payable, and the Rui Wu Note shall thereupon become immediately due and payable in cash and Rui Wu will also have the right to pursue any other remedies that Rui Wu may have under applicable law. In the event that any amount due under the Rui Wu Note is not paid as and when due, such amounts shall accrue interest at the rate of 18% per year, simple interest, non-compounding, until paid.   The $50,000 original issue discounts, the fair value of 125,000 warrants issued, and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $550,000. For the excess amount of derivative liability, the Company recorded accretion expense of $514,850 at the inception date of this note.   The balance of the Riu Wu Note as of June 30, 2024 and December 31, 2023 was $550,000, respectively. The Company is currently in default of the Rui Wu Note.   Convertible Note – Fast Capital, LLC   On January 13, 2022, the Company entered into a Securities Purchase Agreement, (the “SPA”) dated as of January 10, 2022, by and between the Company and Fast Capital, LLC (the “Buyer”). Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase (the “Purchase”), a 10% convertible note in the aggregate principal amount of $120,000 (the “Note”). The Note has an original issue discount of $10,000, resulting in gross proceeds to the Company of $110,000.   The Note bears interest at a rate of 10% per annum and reached maturity on January 10, 2023. The Note may be prepaid or assigned with the following penalties/premiums:   SCHEDULE OF PREPAID CONVERTIBLE NOTES PAYABLE Prepay Date   Prepay Amount On or before 30 days   115% of principal plus accrued interest 31 – 60 days   120% of principal plus accrued interest 61 – 90 days   125% of principal plus accrued interest 91 – 120 days   130% of principal plus accrued interest 121 – 150 days   135% of principal plus accrued interest 151 – 180 days   140% of principal plus accrued interest   The Note may not be prepaid after the 180th day.     The Buyer has the right from time to time, and at any time after 180 days to convert all or any part of the outstanding and unpaid principal amount of the Note into common stock, subject to a 4.99% equity blocker.   The conversion price of the Note equals 70% of the lowest trading price of the Company’s common stock for the 20 prior trading days, including the day upon which a notice of conversion is delivered.   The balance of the Fast Capital note as of June 30, 2024 and December 31, 2023 was $120,000 and $120,000, respectively. The Company is currently in default of the Fast Capital Note.   Convertible Promissory Note – ONE44 Capital LLC   On February 16, 2022, the Company entered into a Securities Purchase Agreement, (the “ONE44 Capital purchase agreement”) dated February 15, 2022, by and between the Company and ONE44 Capital LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $175,500 (the “ONE44 Capital Note”). The ONE44 Capital Note has an original issue discount of $17,500, resulting in gross proceeds to the Company of $158,000.   The ONE44 Capital Note bears interest at a rate of 4% per annum and matures on February 16, 2023. Any amount of principal or interest on the Note which is not paid when due will bear interest at a rate of 24% per annum. The Note may not be prepaid in whole or in part except as provided in the Note by way of conversion at the option of the Buyer.   The Buyer has the right from time to time, and at any time during the period beginning on the date that is 180 days following February 16, 2022 and ending on the later of (i) February 16, 2023, and (ii) the date of payment of the Default Amount (as defined in the Note), to convert all or any part of the outstanding and unpaid principal amount of the Note into common stock, subject to a 4.99% equity blocker.   The conversion price of the ONE44 Capital Note equals the lesser of the Variable Conversion Price (as hereinafter defined) and $1.00. The “Variable Conversion Price” means 65% multiplied by the lowest VWAP (as defined in the Note) for the Company’s common stock during the 3 trading date period ending on the latest complete trading day prior to the conversion date.   Since the conversion price is based on 65% of the VWAP during the 3-trading day period immediately prior to the option conversion date, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.   The $17,500 original issue discounts, the $8,000 reimbursement and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $148,306.   ONE44 Capital LLC converted $45,000 principal to common shares in the quarter ended March 31, 2023.   On March 7, 2023, the Company entered into a Debt Repayment and Release Agreement by and between the Company and ONE44 Capital LLC. Pursuant to the terms of the Agreement, the Company agreed to pay to ONE44 $88,738 as full and complete payment of certain debt owed by the Company to ONE44 pursuant to a 4% convertible redeemable note due February 16, 2023, dated February 16, 2022 (the “Note”), in the principal sum of $90,000, plus accrued interest. On March 7, 2023, pursuant to the terms of the Agreement, the Company paid ONE44 $88,738, the debt was settled, and the ONE44 Capital Note was terminated.   The balance of the ONE44 Capital note as of June 30, 2024 and December 31, 2023 was $0, respectively.   Convertible Promissory Note – ONE44 Capital LLC #2   On May 20, 2022, the Company entered into a Securities Purchase Agreement, (the “ONE44 Capital purchase agreement #2”) by and between the Company and ONE44 Capital LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $115,000 (the “ONE44 Capital Note”). The ONE44 Capital Note has an original issue discount of $10,000 and reimbursement of $5,000, resulting in gross proceeds to the Company of $100,000.     The ONE44 Capital Note bears interest at a rate of 4% per annum and matures on May 20, 2023. Any amount of principal or interest on the Note which is not paid when due will bear interest at a rate of 24% per annum. The Note may not be prepaid in whole or in part except as provided in the Note by way of conversion at the option of the Buyer.   ONE44 is entitled, at its option, at any time after the sixth monthly anniversary of cash payment, to convert all or any amount then outstanding under the May 2022 ONE44 Note into shares of common stock at a price per share equal to 55% of the lowest daily trading VWAP of the Company’s common stock for the 20 prior trading days, subject to a 4.99% equity blocker and subject to the terms of the May 2022 ONE44 Note.   Since the conversion price is based on 55% of the lowest daily trading VWAP of the Company’s common stock for the 20 prior trading days, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.   The $10,000 original issue discounts, the $5,000 reimbursement and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $95,000.   ONE44 Capital LLC converted $20,000 principal to common shares in the quarter ended March 31, 2023 and converted $20,000 principal and $770 interest to common shares in the quarter ended June 30, 2023.   On May 10, 2023, the Company entered into debt repayment and release agreement with ONE44 Capital LLC. Pursuant to the terms of the Agreement, the Company agreed to pay to ONE44 $77,893 as full and complete payment of certain debt owed by the Company to ONE44 pursuant to a 4% convertible redeemable note due May 20, 2023 (the “Note”), in principal sum of $75,000, plus accrued interest. On May 11, 2023, pursuant to the terms of the Agreement, the Company paid ONE44 $77,893, the debt was settled, and the ONE44 Capital Note was terminated.   The balance of the ONE44 Capital note as of June 30, 2024 and December 31, 2023 was $0, respectively.   Convertible Promissory Note – 1800 Diagonal Lending LLC   On June 23, 2022, the Company entered into a Securities Purchase Agreement, (the “Sixth Street #4 purchase agreement”), by and between the Company and Diagonal Lending LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $86,625 (the “Diagonal Note”). The Diagonal Note has an original issue discount of $7,875, $3,000.00 paid to legal counsel for the Company, and $750.00 which amount was retained by the Investor as a due diligence fee resulting in gross proceeds to the Company of $75,000.   The Note has a maturity date of June 23, 2023 and bears interest at 10% per annum. No payments of the principal amount or interest are due prior to the maturity date, other than as specifically set forth in the Note. The Company may not prepay the Note prior to the maturity date, other than by way of a conversion initiated by Investor.   The Note provides Investor with conversion rights to convert all or any part of the outstanding and unpaid principal amount of the Note at any time, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Note and ending on the later of: (i) the Maturity Date; and (ii) the date of payment of the Default Amount (as defined in the Note). Notwithstanding the foregoing, the Investor shall not be entitled to a conversion under the Note upon which the sum of (1) the number of shares of common stock, $0.000001 par value per share (“Common Stock”) beneficially owned by the Investor and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised or unconverted portion of any other security of the Company subject to a similar limitation on conversion or exercise) and (2) the number of shares of Common Stock issuable upon the conversion would result in beneficial ownership by the Investor and its affiliates of more than 4.99% of the outstanding shares of Common Stock.     The conversion price is equal to the lesser of the variable conversion price and fixed conversion price which is $1.00. The variable conversion price is defined in the Note as 75% multiplied by the lowest VWAP for shares of Common Stock during the 20 trading days immediately preceding the Conversion Date.   Since the conversion price is based on the lesser of (i) $1.00 or (ii) 75% of the VWAP during the 20-trading day period immediately prior to the option conversion date, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.   The $11,625 original issue discounts and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $86,625.   Three conversions occurred during the period ending March 31, 2023, resulting in a principal reduction of $46,500 and remaining balance was settled on February 17, 2023 as disclosed below.   On February 17, 2023, the Company entered into a Settlement and Release Agreement by and between the Company and 1800 Diagonal Lending LLC. Pursuant to the terms of the Agreement, in full and final settlement of the Diagonal lending LLC notes, the Company agreed to (i) pay to the Lender $105,000; and (ii) issue to the Lender shares of the Company’s common stock with respect to the Lender’s notice of conversion dated February 16, 2023 relating to a partial conversion of Note #1 (with a then-current balance of $45,479).   As a result, as of February 17, 2023, pursuant to the terms of the Agreement, the Debt was settled and all the 1800 Diagonal Lending LLC notes were terminated.   The balance of the Diagonal note as of June 30, 2024 and December 31, 2023 was $0, respectively.   Convertible Promissory Note – Diagonal Lending LLC   On July 8, 2022, the Company entered into a Securities Purchase Agreement, (the “1800 Diagonal Lending LLC purchase agreement”), by and between the Company and Diagonal Lending LLC. Pursuant to the terms of the SPA, the Company agreed to issue and sell, and the Buyer agreed to purchase, a convertible note in the aggregate principal amount of $61,812 (the “Diagonal Note”). The Diagonal Note has an original issue discount of $5,375 and $3,750 paid to legal counsel for the Company, resulting in gross proceeds to the Company of $52,688.   The Note has a maturity date of July 8, 2023 and bears interest at 10% per annum. No payments of the principal amount or interest are due prior to the maturity date, other than as specifically set forth in the Note. The Company may not prepay the Note prior to the maturity date, other than by way of a conversion initiated by Investor.   The Note provides Investor with conversion rights to convert all or any part of the outstanding and unpaid principal amount of the Note at any time, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Note and ending on the later of: (i) the Maturity Date; and (ii) the date of payment of the Default Amount (as defined in the Note). Notwithstanding the foregoing, the Investor shall not be entitled to a conversion under the Note upon which the sum of (1) the number of shares of common stock, $0.000001 par value per share (“Common Stock”) beneficially owned by the Investor and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised or unconverted portion of any other security of the Company subject to a similar limitation on conversion or exercise) and (2) the number of shares of Common Stock issuable upon the conversion would result in beneficial ownership by the Investor and its affiliates of more than 4.99% of the outstanding shares of Common Stock.   The conversion price is equal to the lesser of the variable conversion price and fixed conversion price which is $1.00. The variable conversion price is defined in the Note as 75% multiplied by the lowest VWAP for shares of Common Stock during the 20 trading days immediately preceding the Conversion Date.   Since the conversion price is based on the lesser of (i) $1.00 or (ii) 75% of the VWAP during the 20-trading day period immediately prior to the option conversion date, the Company has determined that the conversion feature is considered a derivative liability for the Company, which is detailed in Note 10.     The $5,375 original issue discounts and the conversion features were recorded as debt discounts and amortized over the term of the note. Therefore, the total debt discount at the inception date of this convertible promissory note was recorded at $61,812.   On February 17, 2023, the Company entered into a Settlement and Release Agreement by and between the Company and 1800 Diagonal Lending LLC. Pursuant to the terms of the Agreement, in full and final settlement of the Diagonal lending LLC notes, the Company agreed to (i) pay to the Lender $105,000; and (ii) issue to the Lender shares of the Company’s common stock with respect to the Lender’s notice of conversion dated February 16, 2023 relating to a partial conversion of Note #1 (with a then-current balance of $45,479).   As a result, as of February 17, 2023, pursuant to the terms of the Agreement, the Debt was settled and all the 1800 Diagonal Lending LLC notes were terminated.   The balance of the Diagonal note as of June 30, 2024 and December 31, 2023 was $0, respectively.   Below is the summary of the principal balance and debt discounts as of June 30, 2024 and December 31, 2023.   SCHEDULE OF CONVERTIBLE PROMISSORY NOTE Convertible Promissory Note Holder   Start Date   End Date   Initial Note Principal Balance     Current Note Principal Balance     Debt Discounts As of Issuance     Amortization     Debt Discounts As of June 30, 2024   GS Capital #2   2/16/2022   2/16/2022     577,778       -       577,778       (577,778 )     -   GS Capital #2 - replacement   6/29/2022   8/16/2022     635,563       -       -       -       -   GS Capital #3   3/16/2022   3/16/2022     577,778       577,778       577,778       (577,778 )     -   GS Capital #4   4/1/2022   4/1/2022     550,000       550,000       550,000       (550,000 )     -   Eagle Equities LLC   4/13/2022   4/13/2022     1,100,000       1,100,000       1,100,000       (1,100,000 )     -   GS Capital #5   4/29/2022   4/29/2022     550,000       550,000       550,000       (550,000 )     -   GS Capital #6   6/3/2022   6/3/2022     550,000       550,000       550,000       (550,000 )     -   Chris Etherington   8/26/2022   8/26/2022     165,000       165,000       165,000       (165,000 )     -   Rui Wu   8/26/2022   8/26/2022     550,000       550,000       550,000       (550,000 )     -   Sixth Street Lending #1   11/28/2022   11/28/2022     224,000       -       173,894       (173,894 )     -   Sixth Street Lending #2   12/9/2022   12/9/2022     93,500       -       79,118       (79,118 )     -   Fast Capital LLC   1/10/2022   1/10/2023     120,000       120,000       120,000       (120,000 )     -   Sixth Street Lending #3   1/12/2022   1/12/2023     70,125       -       50,748       (50,748 )     -   One 44 Capital   2/16/2022   2/16/2023     175,500       -       148,306       (135,000 )     -   Coventry Enterprise   3/3/2022   3/3/2023     150,000       -       150,000       (150,000 )     -   One 44 Capital #2   5/20/2022   5/20/2023     115,000       -       115,000       (115,000 )     -   1800 Diagonal Lending LLC   6/23/2022   6/23/2023     86,625       -       86,625       (86,625 )     -   1800 Diagonal Lending LLC   7/8/2022   7/8/2023     61,813       -       61,813       (61,813 )     -   Total                                     Total     $ -                                         Remaining note principal balance       4,162,778                                         Total convertible promissory notes, net     $ 4,162,778       Future payments of principal of convertible notes payable at June 30, 2024 are as follows:   SCHEDULE OF FUTURE MATURITIES OF CONVERTIBLE NOTES PAYABLE Years ending December 31,       2024   $ (4,162,778 ) 2025     -   2026     -   Thereafter     -   Total   $ (4,162,778 )   Interest expenses recorded related to the convertible notes payable for the six months ended June 30, 2024 and 2023 were $301,732 and $371,762, respectively.   The Company amortized $0 and $140,144 of the discount on the convertible notes payable to interest expense for the six months ended June 30, 2024 and 2023, respectively.

v3.24.2.u1

SHARES ISSUED - LIABILITY	6 Months Ended
	Jun. 30, 2024
Shares Issued - Liability
SHARES ISSUED - LIABILITY	NOTE 8 – SHARES ISSUED - LIABILITY   As of June 30, 2024 and December 31, 2023, the Company entered into various consulting agreements with consultants, directors, and convertible debt. The balances of shares to be issued – liability was $468,042 and $318,042, respectively. The Company recorded these consultant and director shares under liability based on the shares will be issued at a fixed monetary amount known at inception under ASC 480.   Shares to be issued - liability is summarized as below:  SCHEDULE OF SHARES TO BE ISSUED LIABILITY           Beginning Balance, January 1, 2023   $ 573,333   Shares to be issued     300,000   Shares issued     (555,291 ) Ending Balance, December 31, 2023   $ 318,042     Shares to be issued - liability is summarized as below:             Beginning Balance, January 1, 2024   $ 318,042   Shares to be issued     150,000   Shares issued     0   Ending Balance, June 30, 2024   $ 468,042

v3.24.2.u1

DERIVATIVE LIABILITY	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE LIABILITY	NOTE 9 – DERIVATIVE LIABILITY   The derivative liability is derived from the conversion features in note 8 signed for the period ended December 31, 2023. All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of June 30, 2024 and December 31, 2023, the derivative liability was $2,175,018 and $873,913, respectively. The Company recorded $56,279 gain and $245,343 gain from changes in derivative liability during the three months ended June 30, 2024 and 2023, respectively. The Company recorded $1,301,105 loss and $1,137,479 loss from changes in derivative liability during the six months ended June 30, 2024 and 2023, respectively.   The Binomial model with the following assumption inputs:  SCHEDULE OF DERIVATIVE LIABILITY ASSUMPTIONS INPUT     December 31, 2023   Annual Dividend Yield     —   Expected Life (Years)     0.1 – 0.7 years   Risk-Free Interest Rate     5.26% - 5.53 % Expected Volatility     570-703 %   Fair value of the derivative is summarized as below:  SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY           Beginning Balance, December 31, 2022   $ 799,988   Additions     -   Mark to Market     335,722   Cancellation of Derivative Liabilities Due to Conversions     -   Reclassification to APIC Due to Conversions     (261,797 ) Ending Balance, December 31, 2023   $ 873,913           June 30, 2024   Annual Dividend Yield     —   Expected Life (Years)     0.1 – 0.7 years   Risk-Free Interest Rate     5.33 % Expected Volatility     593 %     Fair value of the derivative is summarized as below:             Beginning Balance, December 31, 2023   $ 873,913   Additions     -   Mark to Market     1,301,105   Cancellation of Derivative Liabilities Due to Conversions     -   Reclassification to Other Income (Loss) Due to Conversions     -   Ending Balance, June 30, 2024   $ 2,175,018

v3.24.2.u1

NOTE PAYABLE, RELATED PARTY	6 Months Ended
	Jun. 30, 2024
Note Payable Related Party
NOTE PAYABLE, RELATED PARTY	NOTE 10 – NOTE PAYABLE, RELATED PARTY   Note payable – Mr. Ben-Yohanan without interest   For the six months ended June 30, 2024 and 2023, the Company borrowed $119,000 and $1,060,000, respectively, from Mr. Ben-Yohanan. The Company, also, made payments of $396,667 and settled of $1,197,501 with issuance in common stock shares towards the note payable as of December 31, 2023. The note is due on demand and has no interest. The balance of the related party note payable as of June 30, 2024 and December 31, 2023 was $369,093 and $250,093, respectively, and included in discontinued operations on the balance sheets.   Effective March 4, 2021, the Company entered into three (3) separate director agreements with Amir Ben-Yohanan, Christopher Young, and Simon Yu. The Director Agreements set out terms and conditions of each of Mr. Ben-Yohanan’s, Mr. Young’s, and Mr. Yu’s role as a director of the Company. Mr. Young and Yu resigned from their officer and director positions with the Company on October 8, 2022.     Pursuant to the Director Agreements, the Company agreed to compensate each of the Directors as follows:     ● An issuance of 31,821 shares of the Company’s common stock, par value par value $0.000001 (“Common Stock”), to be issued on the Effective Date, as compensation for services provided by each of the Directors to the Company prior to the Effective Date; and   ● An issuance of a number of shares of Common Stock having a fair market value (as defined in each of the Director Agreements) of $25,000 at the end of each calendar quarter that the Director serves as a director.   As of June 30, 2024 and December 31, 2023, the Company has a payable balance owed to the sellers of Magiclytics of $97,761 and $97,761 from the acquisition of Magiclytics on February 3, 2021.   During the year ended December 31, 2023, Mr. Young and Mr. Yu prior accrued and unpaid wages amounting $80,000 a piece for total of $160,000 as of September 30, 2023 were forgiven per consulting agreement section 3(c) by the Company. The forgiven accrued and unpaid wages were recorded as a charge to additional paid in capital.   On October 7, 2021, the Board of Directors of the Company appointed Dmitry Kaplun as the Company’s Chief Financial Officer. Pursuant to the terms of the Employment Agreement, the Board entered into a restricted stock award agreement (the “Restricted Stock Agreement”) dated October 7, 2022. Pursuant to the terms of the Restricted Stock Agreement, the Board granted Mr. Kaplun 58,824 shares of restricted common stock on October 7, 2022. 25% of the shares vest on each of the three-month, six-month, nine-month and 12-month anniversaries of the grant date.   On October 12, 2021, the Board appointed Massimiliano Musina to serve as a member of the Company’s Board of Directors. In connection with Mr. Musina’s appointment, the Company and Mr. Musina entered into an Independent Director Agreement dated October 12, 2021 (the “Director Agreement”). Pursuant to the terms of the Director Agreement, the Company agreed to issue to Mr. Musina each quarter a number of shares of common stock having a fair market value of $25,000, in exchange for Mr. Musina’s service as a member of the Company’s Board of Directors.   On April 1, 2022, Clubhouse Media Group, Inc. (the “Company”) entered into an employment agreement with Amir Ben-Yohanan, the Company’s Chief Executive Officer, effective April 11, 2022. The terms of the employment agreement are substantially similar to the terms of Mr. Ben-Yohanan’s prior employment agreement with the Company. Accordingly, pursuant to the terms of the employment agreement, Mr. Ben-Yohanan will continue to serve as Chief Executive Officer of the Company, reporting to the Board of Directors (the “Board”). As compensation for Mr. Ben-Yohanan’s services, the Company agreed to pay Mr. Mr. Ben-Yohanan an annual base salary of $400,000 (the “Base Salary”) comprised of two parts a “Cash Portion”, and an “Optional Portion”. The Cash Portion is a monthly cash payment of $15,000. The remaining $220,000 per year – the Optional Portion – is payable as follows:     (i) If the Company’s Board determines that the Company has sufficient cash on hand to pay all or a portion of the Optional Portion in cash, such amount shall be paid in cash.   (ii) If the Board determines that the Company does not have sufficient cash on hand to pay all of the Optional Portion in cash, then the portion of the Optional Portion which the Board determines that the Company has sufficient cash on hand to pay in cash will be paid in cash, and the remainder (the “Deferred Portion”) will either:     a. be paid at a later date, when the Board determines that the Company has sufficient cash on hand to enable the Company to pay the Deferred Portion; or   b. will not be paid in cash – and instead, the Company will issue shares of Company Common Stock equal to     (A) the Deferred Portion, divided by (B) the VWAP (as defined in the employment agreement) as of the   (B) date of issuance of such shares of Company Common Stock.   In addition, pursuant to the employment agreement, Mr. Ben-Yohanan is entitled to be paid discretionary annual bonuses as determined by the Board, and is also entitled to receive fringe benefits, such as, but not limited to, reimbursement for reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel, vacation days, and certain insurances.   The initial term of the employment agreement was for one year from April 11, 2022, unless earlier terminated. Thereafter, the term is automatically extended on an annual basis for terms of one year each, unless either the Company or Mr. Ben-Yohanan provides notice to the other party of their desire to not so renew the term of the agreement (as applicable) at least 30 days prior to the expiration of the then-current term.     Mr. Ben-Yohanan’s employment with the Company is “at will,” meaning that either Mr. Ben-Yohanan or the Company may terminate Mr. Ben-Yohanan’s employment at any time and for any reason, subject to certain terms and conditions.   The Company may terminate the employment agreement at any time, with or without “cause,” as defined in the employment agreement and Mr. Ben-Yohanan may terminate the employment agreement at any time, with or without “good reason,” as defined in the employment agreement. If the Company terminates the employment agreement for cause or Mr. Ben-Yohanan terminates the employment agreement without good reason, Mr. Ben-Yohanan will be entitled to be paid any unpaid salary owed or accrued, including the issuance of any shares of Company Common Stock owed or accrued (as compensation) as of the termination date. In the event that there was any Deferred Portion which had been agreed to be paid in cash, such Deferred Portion instead will be paid in shares of Company Common Stock as though such amount had been agreed to be paid via the issuance of shares of Company Common Stock. Mr. Ben-Yohanan will also be entitled to payment for any unreimbursed expenses as of the termination date. However, any unvested portion of any equity granted to Mr. Ben-Yohanan will be immediately forfeited as of the termination date.   During the year ended December 31, 2023, Mr. Ben-Yohanan entered into an agreement with the Company to forgive all prior accrued and unpaid wages amounting to $785,000 as of September 30, 2023 and agreed to forego any wages until further notification to the Company. The forgiven accrued and unpaid wages were recorded as a charge to additional paid in capital.   As of June 30, 2024, the Company had accrued unpaid wages amounting to $300,000 to Mr. Ben-Yohanan and included in accounts payable and accrued liabilities on the balance sheets.   On April 19, 2022, the board of directors (the “Board”) of Clubhouse Media Group, Inc. (the “Company”) and stockholders holding a majority of the Company’s voting power approved the Clubhouse Media Group, Inc. 2022 Equity Incentive Plan (the “2022 Plan”).   On July 11, 2022, the Board and stockholders holding a majority of the voting power of the Company approved and adopted the Clubhouse Media Group, Inc. 2023 Equity Incentive Plan (the “2023 Plan”).

v3.24.2.u1

JOINT VENTURE AGREEMENT- CONSOLIDATED SUBSIDIARY	6 Months Ended
	Jun. 30, 2024
Joint Venture Agreement- Consolidated Subsidiary
JOINT VENTURE AGREEMENT- CONSOLIDATED SUBSIDIARY	NOTE 11 - JOINT VENTURE AGREEMENT- CONSOLIDATED SUBSIDIARY   On July 31, 2022, the Company entered into a joint venture deal memo with Alden Henri Reiman (“Mr. Reiman”), pursuant to which the parties agreed to enter into a more permanent joint venture arrangement, involving the creation of a Nevada limited liability company, The Reiman Agency LLC (the “Agency”), of which the Company shall own 51% of the membership units, and Mr. Reiman shall own 49% of the membership units. Mr. Reiman is to serve as President of the Agency, pursuant to the terms of an Executive Employment Agreement. The parties’ respective membership interests shall be non-transferrable, and the Agency shall not issue additional membership interests, unless the parties mutually consent in each instance. The Company consolidated this joint venture since we owned 51% and has control in this entity.   Mr. Reiman shall oversee the day-to-day operations of the Agency, but shall consult with the Company on a regular basis and regularly update the Company on the status of deals and the operations of the business. All material business and financial decisions shall be subject to the Company’s final approval. The Company shall not exercise its approval rights in an arbitrary or capricious manner.   In the event that Mr. Reiman determines that office space is required to properly carry on the business of the Agency, Mr. Reiman shall have the authority to lease a reasonable office space on behalf of the Agency, subject to the Company’s prior review and approval. The Company has agreed and approved an office leasing budget of up to $200,000 USD annually. Expenses in excess of $400 must be pre-approved by the Company.   On the Effective Date, the parties closed the Agreement by executing an Operating Agreement for the Agency, dated the Effective Date, which encapsulates the essential terms and conditions contained in the Agreement.   In connection with Mr. Reiman’s appointment as President of the Agency, on the Effective Date, the Company and the Agency, a majority owned subsidiary of the Company, entered into a written Executive Employment Agreement (the “Employment Agreement”) with Mr. Reiman for a term of two (2) years following the Effective Date (the “Initial Term”). The Initial Term and any renewal term shall automatically be extended for up to two (2) more additional terms of two (2) years (each a “Renewal Term”), for an aggregate of up to six (6) years.     The Employment Agreement provides Mr. Reiman with a monthly base salary of $37,500 per month, payable on a weekly basis in accordance with the Company’s own payroll policies for the initial term, provided however, that if within the three (3) month period following full execution of the Employment Agreement the Agency is profitable, the Base Salary shall increase to $42,500 per month, beginning the week following the end of the Period. On December 14, 2023, the Company terminated employment of Mr. Reiman.   Additionally, on the last day of each month of the term, Mr. Reiman shall be entitled to an amount of shares equal to seven and one half percent (7.5%) of the net receipts for the applicable month (“Additional Shares”), divided by the twenty (20) day VWAP of such shares from the last day of the applicable month. All Additional Shares issued to Mr. Reiman pursuant to the Employment Agreement shall be issued to Mr. Reiman within seven (7) business days of the date such shares vest. Mr. Reiman shall also be entitled to Twenty-Five Percent (25%) of the net receipts generated by the Agency during each month (the “Commission Bonus”). The Commission Bonus shall be calculated monthly and paid to Reiman within seven (7) business days of the last business day of the applicable month.   The Company allocates the net income or loss of this joint venture to non-controlling interest based on the ownership of this joint venture. The non-controlling interest for the three months ended June 30, 2024 and 2023, was $(278) and $(12,158), respectively, included with discontinued operations in statement of operations. The non-controlling interest for the six months ended June 30, 2024 and 2023, was $955 and $(156,277), respectively, included with discontinued operations in statement of operations. During December 2023, the Company terminated the joint venture agreement with Mr. Reiman due to switching focus away from brand deals. However, the controlling ownership percentage of the Company did not change and will continue until the contracts entered into before termination of agreement are completed.

v3.24.2.u1

STOCKHOLDERS’ EQUITY (DEFICIT)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY (DEFICIT)	NOTE 12 – STOCKHOLDERS’ EQUITY (DEFICIT)   On July 7, 2020, the Company increased the authorized capital stock of the Company to 550,000,000, comprised of 500,000,000 shares of common stock, par value $0.001, and 50,000,000 shares of preferred stock, par value $0.001.   On April 19, 2022, the Company filed Articles of Amendment to the Company’s Articles of Incorporation with the Nevada Secretary of State that had the effect of increasing the authorized shares of common stock from 500,000,000 to 2,000,000,000.   The Company filed a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of the State of Nevada on June 13, 2022 for the purpose of amending the Articles of Incorporation of the Company to reduce the par value of the common stock of the Company, par value $0.001 per share, from $0.001 to $0.000001.   On June 23, 2022, the Company filed Articles of Amendment to the Company’s Articles of Incorporation with the Nevada Secretary of State that had the effect of increasing the authorized shares of common stock from 2,000,000,000 to 8,000,000,000. The Company’s Preferred Stock was unchanged by the Amendment.   On November 15, 2022, the Company filed a certificate of amendment to its Articles of Incorporation to increase the Company’s authorized shares of common stock, par value $0.000001 per share, from 8,000,000,000 to 25,000,000,000. Accordingly, following the filing of the Amendment, the Company has 25,050,000,000 authorized shares of capital stock, consisting of 25,000,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.001 per share.   One share of Series X Preferred Stock is outstanding as of December 31, 2022. The single share of Series X Preferred Stock outstanding is held by Amir Ben-Yohanan, the Company’s Chief Executive Officer, who also holds 56,958,396 shares of Common Stock as of December 31, 2023.     Preferred Stock   As of June 30, 2024 there was 1 preferred share issued and outstanding.   On November 12, 2020, the Company filed a Certificate of Designations with the Secretary of State of Nevada to designate one share of the preferred stock of the Company as the Series X Preferred Stock of the Company.   In November 2020, the Company issued and sold to the Company’s Chief Executive Officer 1 share of Series X Preferred Stock, at a purchase price of $1.00. The share of Series X Preferred Stock shall have a number of votes at any time equal to (i) the number of votes then held or entitled to be made by all other equity securities of the Company, debt securities of the Company or pursuant to any other agreement, contract or understanding of the Company, plus (ii) one (1). The Series X Preferred Stock shall vote on any matter submitted to the holders of the Common Stock, or any class thereof, for a vote, and shall vote together with the Common Stock, or any class thereof, as applicable, on such matter for as long as the share of Series X Preferred Stock is issued and outstanding. The Series X Preferred Stock shall not have the right to vote on any matter as to which solely another class of Preferred Stock of the Company is entitled to vote pursuant to the certificate of designations of such other class of Preferred Stock of the Company.   The Series X Preferred Stock shall not be convertible into shares of any other class of stock of the Company and entitled to receive any dividends paid on any other class of stock of the Company.   In the event of any liquidation, dissolution or winding up of the Company, either voluntarily or involuntarily, a merger or consolidation of the Company wherein the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, the Series X Preferred Stock shall not be entitled to receive any distribution of any of the assets or surplus funds of the Company and shall not participate with the Common Stock or any other class of stock of the Company therein.   Common Stock   As of June 30, 2024 and December 31, 2023, the Company had 25,000,000,000 shares of common stock authorized with a par value of $0.000001. There were 16,372,179,486 shares issued and outstanding at June 30, 2024 and December 31, 2023.   For the year ended December 31, 2023, the Company issued 2,105,949,128 shares to settle conversions of $229,840 of convertible promissory notes principal and accrued interest.   For the year ended December 31, 2023, the Company issued 5,987,500,000 shares for debt exchange in amount of $1,197,501 to Amir Ben-Yohanan non-interest loan to the Company.   For the year ended December 31, 2023, the Company issued 1,448,352,195 shares for services provided by directors.   Warrants   A summary of the Company’s stock warrants activity is as follows:   SUMMARY OF WARRANTS ACTIVITY     Number of Options (in thousands)     Weighted- Average Exercise Price     Weighted- Average Contractual Term (in years)     Aggregate Intrinsic Value   Outstanding at December 31, 2023     165,077     $ 2.05       2.65       -   Issued     -       -       -       -   Exercised     -       -       -       -   Canceled     -       -       -       -   Outstanding at June 30, 2024     165,077     $ 2.05       2.15     $ -   Vested and expected to vest at June 30, 2024     165,077     $ 2.05       2.15     $ -   Exercisable at June 30, 2024     165,077     $ 2.05       2.15     $ -     No stock options were granted by the Company during the six months ended June 30, 2024.     The fair values of warrants granted in 2021 were estimated using the Black-Scholes option pricing model on the grant date using the following assumptions:   SCHEDULE OF FAIR VALUE OF STOCK OPTIONS GRANTED ASSUMPTIONS Dividend yield   — % Expected term (in years)     5   Volatility     368 - 369 %   Equity Purchase Agreement and Registration Rights Agreement   On November 2, 2021, Clubhouse Media Group, Inc (the “Company”) entered into an Equity Purchase Agreement (the “Agreement”) and Registration Rights Agreement (the “Registration Rights Agreement”) with Peak One Opportunity Fund, L.P., a Delaware limited Partnership (“Investor”), dated as of October 29, 2021, pursuant to which the Company shall have the right, but not the obligation, to direct Investor, to purchase up to $15,000,000.00 (the “Maximum Commitment Amount”) in shares of the Company’s common stock, par value $0.000001 per share (“Common Stock”) in multiple tranches. Further, under the Agreement and subject to the Maximum Commitment Amount, the Company has the right, but not the obligation, to submit a Put Notice (as defined in the Agreement) from time to time to Investor (i) in a minimum amount not less than $20,000.00 and (ii) in a maximum amount up to the lesser of (a) $400,000.00 or (b) 250% of the Average Daily Trading Value (as defined in the Agreement).   In exchange for Investor entering into the Agreement, the Company agreed, among other things, to (A) issue Investor and Peak One Investments, LLC, an aggregate of 70,000 shares of Common Stock (the “the Commitment Shares”), and (B) file a registration statement registering the Common Stock issued as Commitment Shares or issuable to Investor under the Agreement for resale (the “Registration Statement”) with the Securities and Exchange Commission within 60 calendar days of the Agreement, as more specifically set forth in the Registration Rights Agreement.   The obligation of Investor to purchase the Company’s Common Stock shall begin on the date of the Agreement, and ending on the earlier of (i) the date on which Investor shall have purchased Common Stock pursuant to this Agreement equal to the Maximum Commitment Amount, (ii) twenty four (24) months after the date of the Agreement, (iii) written notice of termination by the Company to Investor (which shall not occur during any Valuation Period or at any time that Investor holds any of the Put Shares), (iv) the Registration Statement is no longer effective after the initial effective date of the Registration Statement, or (v) the date that the Company commences a voluntary case or any person commences a proceeding against the Company, a custodian is appointed for the Company or for all or substantially all of its property or the Company makes a general assignment for the benefit of its creditors (the “Commitment Period”).   During the Commitment Period, the purchase price to be paid by Investor for the Common Stock under the Agreement shall be 95% of the Market Price, which is defined as the lesser of the (i) closing bid price of the Common Stock on the trading day immediately preceding the respective Put Date (as defined in the Agreement), or (ii) lowest closing bid price of the Common Stock during the Valuation Period (as defined in the Agreement), in each case as reported by Bloomberg Finance L.P or other reputable source designated by Investor.   The Agreement and the Registration Rights Agreement contain customary representations, warranties, agreements, and conditions to completing future sale transactions, indemnification rights and obligations of the parties. Among other things, Investor represented to the Company, that it is an “accredited investor” (as such term is defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”)), and the Company sold the securities in reliance upon an exemption from registration contained in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.   2023 Equity Incentive Plan   On July 11, 2022, the Board and stockholders holding a majority of the voting power of the Company approved and adopted the Clubhouse Media Group, Inc. 2023 Equity Incentive Plan (the “2023 Plan”).   A total of 75,000,000 shares of the Company’s common stock are authorized for issuance pursuant to the 2023 Plan.     Additionally, if any award issued pursuant to the 2023 Plan expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an exchange program, as provided in the 2023 Plan, or, with respect to restricted stock, restricted stock units (“RSUs”), performance units or performance shares, is forfeited to or repurchased by the Company due to the failure to vest, the unpurchased shares (or for awards other than stock options or stock appreciation rights the forfeited or repurchased shares) which were subject thereto will become available for future grant or sale under the 2023 Plan (unless the 2023 Plan has terminated). With respect to stock appreciation rights, only shares actually issued pursuant to a stock appreciation right will cease to be available under the 2023 Plan; all remaining shares under stock appreciation rights will remain available for future grant or sale under the 2023 Plan (unless the 2023 Plan has terminated). Shares that have actually been issued under the 2023 Plan under any award will not be returned to the 2023 Plan and will not become available for future distribution under the 2023 Plan; provided, however, that if shares issued pursuant to awards of restricted stock, restricted stock units, performance shares or performance units are repurchased by the Company or are forfeited to the Company due to the failure to vest, such shares will become available for future grant under the 2023 Plan. Shares used to pay the exercise price of an award or to satisfy the tax withholdings related to an award will become available for future grant or sale under the 2023 Plan. To the extent an award under the 2023 Plan is paid out in cash rather than shares, such cash payment will not result in reducing the number of shares available for issuance under the 2023 Plan.   Notwithstanding the foregoing and, subject to adjustment as provided in the 2023 Plan, the maximum number of shares that may be issued upon the exercise of incentive stock options will equal the aggregate share number stated above, plus, to the extent allowable under Section 422 of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, any shares that become available for issuance under the 2023 Plan in accordance with the foregoing.   Plan Administration   The Board or one or more committees appointed by the Board will administer the 2023 Plan. In addition, if the Company determines it is desirable to qualify transactions under the 2023 Plan as exempt under Rule 16b-3 of the Securities Exchange Act of 1934, as amended, such transactions will be structured with the intent that they satisfy the requirements for exemption under Rule 16b-3. Subject to the provisions of the 2023 Plan, the administrator has the power to administer the 2023 Plan and make all determinations deemed necessary or advisable for administering the 2023 Plan, including the power to determine the fair market value of the Company’s common stock, select the service providers to whom awards may be granted, determine the number of shares covered by each award, approve forms of award agreements for use under the 2023 Plan, determine the terms and conditions of awards (including the exercise price, the time or times at which the awards may be exercised, any vesting acceleration or waiver or forfeiture restrictions and any restriction or limitation regarding any award or the shares relating thereto), construe and interpret the terms of the 2023 Plan and awards granted under it, prescribe, amend and rescind rules relating to the 2023 Plan, including creating sub-plans and modify or amend each award, including the discretionary authority to extend the post-termination exercisability period of awards (provided that no option or stock appreciation right will be extended past its original maximum term), and to allow a participant to defer the receipt of payment of cash or the delivery of shares that would otherwise be due to such participant under an award. The administrator also has the authority to allow participants the opportunity to transfer outstanding awards to a financial institution or other person or entity selected by the administrator and to institute an exchange program by which outstanding awards may be surrendered or cancelled in exchange for awards of the same type which may have a higher or lower exercise price or different terms, awards of a different type or cash, or by which the exercise price of an outstanding award is increased or reduced. The administrator’s decisions, interpretations and other actions are final and binding on all participants.   Eligibility   Awards under the 2023 Plan, other than incentive stock options, may be granted to employees (including officers) of the Company or a subsidiary, members of the Company’s Board, or consultants engaged to render bona fide services to the Company or a subsidiary. Incentive stock options may be granted only to employees of the Company or a subsidiary.     Stock Options   Stock options may be granted under the 2023 Plan. The exercise price of options granted under the 2023 Plan generally must at least be equal to the fair market value of the Company’s common stock on the date of grant. The term of each option will be as stated in the applicable award agreement; provided, however, that the term may be no more than 10 years from the date of grant. The administrator will determine the methods of payment of the exercise price of an option, which may include cash, shares or other property acceptable to the administrator, as well as other types of consideration permitted by applicable law. After the termination of service of an employee, director, or consultant, they may exercise their option for the period of time stated in their option agreement. In the absence of a specified time in an award agreement, if termination is due to death or disability, the option will remain exercisable for 12 months. In all other cases, in the absence of a specified time in an award agreement, the option will remain exercisable for three months following the termination of service. An option may not be exercised later than the expiration of its term. Subject to the provisions of the 2023 Plan, the administrator determines the other terms of options.   Notwithstanding any other provision of the 2023 Plan to the contrary, the aggregate grant date fair value of all awards granted, under the 2023 Plan, to any director who is not an employee, during any fiscal year of the Company, taken together with any cash compensation paid to such director during such fiscal year, shall not exceed $300,000.   Stock Appreciation Rights   Stock appreciation rights may be granted under the 2023 Plan. Stock appreciation rights allow the recipient to receive the appreciation in the fair market value of the Company’s common stock between the exercise date and the date of grant. Stock appreciation rights may not have a term exceeding 10 years. After the termination of service of an employee, director or consultant, they may exercise their stock appreciation right for the period of time stated in their stock appreciation right agreement. In the absence of a specified time in an award agreement, if termination is due to death or disability, the stock appreciation rights will remain exercisable for 12 months. In all other cases, in the absence of a specified time in an award agreement, the stock appreciation rights will remain exercisable for three months following the termination of service. However, in no event may a stock appreciation right be exercised later than the expiration of its term. Subject to the provisions of the 2023 Plan, the administrator determines the other terms of stock appreciation rights, including when such rights become exercisable and whether to pay any increased appreciation in cash or with shares of the Company’s common stock, or a combination thereof, except that the per share exercise price for the shares to be issued pursuant to the exercise of a stock appreciation right will be no less than 100% of the fair market value per share on the date of grant.   Restricted Stock   Restricted stock may be granted under the 2023 Plan. Restricted stock awards are grants of shares of the Company’s common stock that vest in accordance with terms and conditions established by the administrator. The administrator will determine the number of shares of restricted stock granted to any employee, director, or consultant and, subject to the provisions of the 2023 Plan, will determine the terms and conditions of such awards. The administrator may impose whatever conditions to vesting it determines to be appropriate (for example, the administrator may set restrictions based on the achievement of specific performance goals or continued service to the Company); provided, however, that the administrator, in its sole discretion, may accelerate the time at which any restrictions will lapse or be removed. Recipients of restricted stock awards generally will have voting and dividend rights with respect to such shares upon grant without regard to vesting, unless the administrator provides otherwise. Shares of restricted stock that do not vest are subject to the Company’s right of repurchase or forfeiture.   Restricted Stock Units   RSUs may be granted under the 2023 Plan. RSUs are bookkeeping entries representing an amount equal to the fair market value of one share of the Company’s common stock. Subject to the provisions of the 2023 Plan, the administrator determines the terms and conditions of RSUs, including the vesting criteria and the form and timing of payment. The administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit or individual goals (including continued employment or service), applicable federal or state securities laws or any other basis determined by the administrator in its discretion. The administrator, in its sole discretion, may pay earned RSUs in the form of cash, in shares of the Company’s common stock or in some combination thereof. Notwithstanding the foregoing, the administrator, in its sole discretion, may accelerate the time at which any vesting requirements will be deemed satisfied.     Performance Units and Performance Shares   Performance units and performance shares may be granted under the 2023 Plan. Performance units and performance shares are awards that will result in a payment to a participant only if performance goals established by the administrator are achieved or the awards otherwise vest. The administrator will establish performance objectives or other vesting criteria in its discretion, which, depending on the extent to which they are met, will determine the number or the value of performance units and performance shares to be paid out to participants. The administrator may set performance objectives based on the achievement of Company-wide, divisional, business unit or individual goals (including continued employment or service), applicable federal or state securities laws or any other basis determined by the administrator in its discretion. After the grant of a performance unit or performance share, the administrator, in its sole discretion, may reduce or waive any performance criteria or other vesting provisions for such performance units or performance shares. Performance units shall have an initial dollar value established by the administrator on or prior to the grant date. Performance shares shall have an initial value equal to the fair market value of the Company’s common stock on the grant date. The administrator, in its sole discretion, may pay earned performance units or performance shares in the form of cash, in shares or in some combination thereof.   Non-Employee Directors   The 2023 Plan provides that all non-employee directors will be eligible to receive all types of awards (except for incentive stock options) under the 2023 Plan. The 2023 Plan includes a maximum limit of $300,000 of equity awards that may be granted to a non-employee director in any fiscal year. Any equity awards granted to a person for their services as an employee, or for their services as a consultant (other than as a non-employee director), will not count for purposes of the limitation. The maximum limit does not reflect the intended size of any potential compensation or equity awards to the Company’s non-employee directors.

v3.24.2.u1

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13 – COMMITMENTS AND CONTINGENCIES   On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”), and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The Company’s suppliers may decrease production levels based on factory closures and reduced operating hours in those facilities. Likewise, the Company is dependent on its workforce to deliver its products. Developments such as social distancing and shelter-in-place directives may impact the Company’s ability to deploy its workforce effectively. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report.   Management is actively monitoring the impact of the global situation on its financial condition, liquidity, operations, suppliers, industry, and workforce. The Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time. If the pandemic continues, it may have a material effect on the Company’s results of future operations, financial position, and liquidity in the next 12 months.

v3.24.2.u1

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS   The Company has evaluated subsequent events through August 10, 2024, the date these financial statements were available to be issued and noted no material subsequent events for disclosure.

v3.24.2.u1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation   These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented.
Principles of Consolidation	Principles of Consolidation   The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The Company includes within the consolidated financial statements the joint venture, see Note 11, due to ability to exert control over the financial and operating polices which includes ownership of equal to or greater than 50% of the joint venture.
Use of Estimates	Use of Estimates   In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, the allowance for bad debt, useful life of fixed assets, income taxes and unrecognized tax benefits, valuation allowance for deferred tax assets, and assumptions used in assessing impairment of long-lived assets. Actual results could differ from those estimates.
Reclassification	Reclassification   Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. These reclassifications had no effect on our previously reported results of operations or accumulated deficit.
Business Combination	Business Combination   The Company applies the provisions of the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date, fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents   Cash equivalents consist of highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents are on deposit with financial institutions without any restrictions. The Company maintains its cash with high credit quality financial institutions; at times, such balances with any one financial institution may exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits.
Advertising	Advertising   Advertising costs are expensed when incurred and are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations. We incurred advertising expenses of $3,887 and $24,174 for the six months ended June 30, 2024, and 2023, respectively.
Accounts Receivable	Accounts Receivable   The Company’s accounts receivable arises from providing services. The Company does not adjust its receivables for the effects of a significant financing component at contract inception if it expects to collect the receivables in one year or less from the time of sale. The Company does not expect to collect receivables greater than one year from the time of sale.   The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Amounts determined to be uncollectible are charged or written-off against the reserve. As of June 30, 2024, and December 31, 2023, there were $0 and $79, respectively, for bad debt allowance for accounts receivable.   As of June 30, 2024, and December 31, 2023, there were $2,085 and $2,956, respectively, for bad debt allowance for accounts receivable included with discontinued operations on balance sheets.
Property and equipment, net	Property and equipment, net   Plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of property, plant and equipment and are calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:   SCHEDULE OF PROPERTY AND EQUIPMENT, NET ESTIMATED USEFUL LIVES Classification   Useful Life Equipment   3 years
Lease	Lease   The Company elected to use the short-term exception and does not record assets/liabilities for short term leases as of June 30, 2024 and December 31, 2023.
Revenue Recognition	Revenue Recognition   In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. This new standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB subsequently issued the following amendments to ASU No. 2014-09 that have the same effective date and transition date: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients; and ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The Company adopted these amendments with ASU 2014-09 (collectively, the new revenue standards).   Under the new revenue standards, the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods. The Company recognizes revenues following the five step model prescribed under ASU No. 2014-09: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenues when (or as) we satisfy the performance obligation. The Company recognized revenue from providing temporary and permanent staffing solutions and sale of consumer products.
Managed Services Revenue	Managed Services Revenue   The Company generates revenue from its managed services when a marketer (typically a brand, agency, or partner) pays the Company to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).   The Company maintains separate arrangements with each marketer and content creator either in the form of a master agreement or terms of service, which specify the terms of the relationship and access to its platforms, or by statement of work, which specifies the price and the services to be performed, along with other terms. The transaction price is determined based on the fixed fee stated in the statement of work and does not contain variable consideration. Marketers who contract with the Company to manage their advertising campaigns or custom content requests may prepay for services or request credit terms. The agreement typically provides for either a non-refundable deposit, or a cancellation fee if the agreement is canceled by the customer prior to completion of services. Billings in advance of completed services are recorded as a contract liability until earned. The Company assesses collectability based on a number of factors, including the creditworthiness of the customer and payment and transaction history.   For Managed Services Revenue, the Company enters into an agreement to provide services that may include multiple distinct performance obligations in the form of: (i) an integrated marketing campaign to provide influencer marketing services, which may include the provision of blogs, tweets, photos or videos shared through social network offerings and content promotion, such as click-through advertisements appearing in websites and social media channels; and (ii) custom content items, such as a research or news article, informational material or videos. Marketers typically purchase influencer marketing services for the purpose of providing public awareness or advertising buzz regarding the marketer’s brand and they purchase custom content for internal and external use. The Company may provide one type or a combination of all types of these performance obligations on a statement of work for a lump sum fee. Revenue is accounted for when the performance obligation has been satisfied depending on the type of service provided. The Company views its obligation to deliver influencer marketing services, including management services, as a single performance obligation that is satisfied at the time the customer receives the benefits from the services.     Based on the Company’s evaluations, revenue from Managed Services is reported on a gross basis because the Company has the primary obligation to fulfill the performance obligations and it creates, reviews and controls the services. The Company takes on the risk of payment to any third-party creators and it establishes the contract price directly with its customers based on the services requested in the statement of work. The deferred revenue as of June 30, 2024, and December 31, 2023, was $0 and included with discontinued operations on balance sheets. As of December 31, 2023, the Company has shifted focus from managed services to HoneyDrip.com platform as such managed services is included in discontinued operations on statement of operations.
Subscription-Based Revenue	Subscription-Based Revenue   The Company recognizes subscription-based revenue through Honeydrip.com, its social media website, which allows customers to visit the creator’s personal page over the contract period without taking possession of the products or deliverables. Customers incur costs on either a subscription or consumption basis. Revenue provided on a subscription basis is recognized ratably over the contract period and revenue provided on a consumption basis is recognized when the subscriber paid and received their access to the content. The Company reported the subscription-based revenue at net basis since the Company is acting as an agent solely arranging for the third-party creator or influencer to provide the services directly to the self-service customer through the platform or by posting the requested content. In April 2022, the Company has determined it will be recognized at gross because they have control of the services before it is transferred to the end customer. The Company provided services like online chat and other services directly with the end customers by their internal team. Also, the Company will establish the price on behalf of the content creators as disclosed in the agreement. The Company has sole power to change the price based on the market. These are good indicators that the Company controls the specified goods or services before it is transferred to the customer.
Software Development Costs	Software Development Costs   We apply ASC 350-40, Intangibles—Goodwill and Other—Internal Use Software, in review of certain system projects. These system projects generally relate to software we do not intend to sell or otherwise market. In addition, we apply this guidance to our review of development projects related to software used exclusively for our SaaS subscription offerings. In these reviews, all costs incurred during the preliminary project stages are expensed as incurred. Once the projects have been committed to and it is probable that the projects will meet functional requirements, costs are capitalized. These capitalized software costs are amortized on a project-by-project basis over the expected economic life of the underlying product on a straight-line basis, which is five years. Amortization commences when the software is available for its intended use. Amounts capitalized related to development of internal use software are included in property and equipment, net, on our Consolidated Balance sheets and related depreciation is recorded as a component of amortization of intangible assets and depreciation in our consolidated statements of operations. For the six months ended June 30, 2024, and 2023, we capitalized $21,335 and $62,825, respectively, related to internal use software and recorded $66,247 and $61,644 in related amortization expense, respectively. Unamortized costs of capitalized internal use software totaled $404,495 and $445,582 as of June 30, 2024, and December 31, 2023, respectively. As of December 31, 2023, the Company fully impaired developed technology-magiclytics.
Goodwill Impairment	Goodwill Impairment   We test goodwill at least annually for impairment at the reporting unit level. We recognize an impairment charge if the carrying amount of a reporting unit exceeds its fair value. When a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained.   For other intangible assets that are not deemed indefinite-lived, cost is generally amortized on a straight-line basis over the asset’s estimated economic life, except for individually significant customer-related intangible assets that are amortized in relation to total related sales. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to estimated fair value based on either discounted cash flows or appraised values. The Company impaired $0 and $0 of goodwill for the six months ended June 30, 2024 and 2023, respectively.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets   Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.   Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of and for the six months ended June 30, 2024, and 2023, there were no impairment loss of its long-lived assets.
Income Taxes	Income Taxes   The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized.   The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold is recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold is derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense.
Commitments and Contingencies	Commitments and Contingencies   The Company follows subtopic 450-20 of the FASB ASC to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment.   In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.   If the assessment of a contingency indicates it is probable a material loss was incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.   Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.
Concentration of Credit Risk	Concentration of Credit Risk   Financial instruments that potentially subject the Company to credit risk consist primarily of accounts receivable. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.
Basic Income (Loss) Per Share	Basic Income (Loss) Per Share   Under the provisions of ASC 260, “Earnings per Share,” basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the income of the Company, subject to anti-dilution limitations. Potential common shares consist of the convertible promissory notes payable as of June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, there were 7,435,097,663 and 8,865,097,663 potential shares issuable upon conversion of convertible notes payable. As of June 30, 2024 and 2023, there were approximately 165,077 potential shares issuable upon conversion of warrants. All potential shares from convertible notes payable and warrants were considered anti-dilutive as of June 30, 2024 and December 31, 2023.   The table below presents the computation of basic and diluted earnings per share for the three months ended June 30, 2024 and 2023:   SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNING PER SHARE     For the three months ended June 30, 2024     For the three months ended June 30, 2023       (Unaudited)     (Unaudited)   Numerator:                 Net income (loss) from continuing operations   $ (380,293 )   $ (346,053 ) Denominator:                 Weighted average common shares outstanding—basic     16,372,179,486       8,480,503,383   Dilutive common stock equivalents     -       -   Weighted average common shares outstanding—diluted     16,372,179,486       8,480,503,383   Net loss per share:                 Basic   $ (0.00 )   $ (0.00 ) Diluted   $ (0.00 )   $ (0.00 )   The table below presents the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:       For the six months ended June 30, 2024     For the six months ended June 30, 2023       (Unaudited)     (Unaudited)   Numerator:                 Net income (loss) from continuing operations   $ (2,129,443 )   $ (2,204,792 ) Denominator:                 Weighted average common shares outstanding—basic     16,372,179,486       8,109,652,138   Dilutive common stock equivalents     -       -   Weighted average common shares outstanding—diluted     16,372,179,486       8,109,652,138   Net loss per share:                 Basic   $ (0.00 )   $ (0.00 ) Diluted   $ (0.00 )   $ (0.00 )
Stock based Compensation	Stock based Compensation   Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award) under ASC 718. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.
Fair Value of Financial Instruments	Fair Value of Financial Instruments   FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.
Fair Value Measurements	Fair Value Measurements   The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:     ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.   ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.   ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.   Cash, accounts receivable, accounts payable, and accrued expenses and deferred revenue – The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short term nature.   Convertible notes payable – Convertible promissory notes payable are recorded at amortized cost. The carrying amount approximates their fair value.   The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities as their fair values were determined by using the binomial option-pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.   The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2024 and December 31, 2023.   SCHEDULE OF ASSETS AND LIABILITIES UNDER FAIR VALUE HIERARCHY     Fair Value     Fair Value Measurements at       As of     June 30, 2024   Description   June 30, 2024     Using Fair Value Hierarchy             Level 1     Level 2     Level 3   Derivative liability   $ 2,175,018     $ -     $ -     $ 2,175,018                                     Total   $ 2,175,018     $ -     $ -     $ 2,175,018           Fair Value     Fair Value Measurements at       As of     December 31, 2023   Description   December 31, 2023     Using Fair Value Hierarchy             Level 1     Level 2     Level 3   Derivative liability   $ 873,913     $ -     $ -     $ 873,913                                     Total   $ 873,913     $ -     $ -     $ 873,913
Derivative instruments	Derivative instruments   The fair value of derivative instruments is recorded and shown separately under liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under other (income) expense.   Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives under ASC 815. 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 in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses binomial 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.   In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Topic 815): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 requires companies to measure conversion of debt into equity that contain derivatives with difference as a gain or loss. ASU 2020-06 is effective for fiscal years beginning after December 15, 2022, including those interim periods within those fiscal years. The Company adopted and follows ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity as of December 31, 2023.
Beneficial Conversion Features	Beneficial Conversion Features   If a conversion features did not meet the definition of derivative liability under ASC 815, the Company evaluates the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the note. If the effective conversion price was less than the market value of underlying common stock at the inception of the convertible promissory note, the Company recorded the difference as debt discounts and amortized over the life of the notes using the effective interest method.
Related Parties	Related Parties   The Company follows subtopic 850-10 of the FASB ASC for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 related parties include:   a. affiliates of the Company; b. entities for which investments in their equity securities would be required, absent the election of the FV option under the FV Option Subsection of Section 825– 10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
New Accounting Pronouncements	New Accounting Pronouncements   Management does not believe that any recently issued and not adopted and/or effective, accounting pronouncements would have a material effect on the accompanying financial statements.

v3.24.2.u1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT, NET ESTIMATED USEFUL LIVES	Plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation of property, plant and equipment and are calculated on the straight-line method over their estimated useful lives or lease terms generally as follows:   SCHEDULE OF PROPERTY AND EQUIPMENT, NET ESTIMATED USEFUL LIVES Classification   Useful Life Equipment   3 years
SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNING PER SHARE	The table below presents the computation of basic and diluted earnings per share for the three months ended June 30, 2024 and 2023:   SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNING PER SHARE     For the three months ended June 30, 2024     For the three months ended June 30, 2023       (Unaudited)     (Unaudited)   Numerator:                 Net income (loss) from continuing operations   $ (380,293 )   $ (346,053 ) Denominator:                 Weighted average common shares outstanding—basic     16,372,179,486       8,480,503,383   Dilutive common stock equivalents     -       -   Weighted average common shares outstanding—diluted     16,372,179,486       8,480,503,383   Net loss per share:                 Basic   $ (0.00 )   $ (0.00 ) Diluted   $ (0.00 )   $ (0.00 )   The table below presents the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:       For the six months ended June 30, 2024     For the six months ended June 30, 2023       (Unaudited)     (Unaudited)   Numerator:                 Net income (loss) from continuing operations   $ (2,129,443 )   $ (2,204,792 ) Denominator:                 Weighted average common shares outstanding—basic     16,372,179,486       8,109,652,138   Dilutive common stock equivalents     -       -   Weighted average common shares outstanding—diluted     16,372,179,486       8,109,652,138   Net loss per share:                 Basic   $ (0.00 )   $ (0.00 ) Diluted   $ (0.00 )   $ (0.00 )
SCHEDULE OF ASSETS AND LIABILITIES UNDER FAIR VALUE HIERARCHY	The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of June 30, 2024 and December 31, 2023.   SCHEDULE OF ASSETS AND LIABILITIES UNDER FAIR VALUE HIERARCHY     Fair Value     Fair Value Measurements at       As of     June 30, 2024   Description   June 30, 2024     Using Fair Value Hierarchy             Level 1     Level 2     Level 3   Derivative liability   $ 2,175,018     $ -     $ -     $ 2,175,018                                     Total   $ 2,175,018     $ -     $ -     $ 2,175,018           Fair Value     Fair Value Measurements at       As of     December 31, 2023   Description   December 31, 2023     Using Fair Value Hierarchy             Level 1     Level 2     Level 3   Derivative liability   $ 873,913     $ -     $ -     $ 873,913                                     Total   $ 873,913     $ -     $ -     $ 873,913

v3.24.2.u1

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
SCHEDULE OF FIXED ASSET, NET	Fixed assets, net consisted of the following:   SCHEDULE OF FIXED ASSET, NET     June 30, 2024     December 31, 2023     Estimated Useful Life                   Equipment   $ 118,638     $ 118,638     3 years Less: accumulated depreciation and amortization     (105,777 )     (101,931 )     Property, plant, and equipment, net,   $ 12,861     $ 16,707

v3.24.2.u1

INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS ACQUIRED AS PART OF BUSINESS COMBINATION	The following table sets forth the Company’s infinite and finite-lived intangible assets resulting from business acquisitions and other purchases, which continue to be amortized:   SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS ACQUIRED AS PART OF BUSINESS COMBINATION     Weighted     June 30, 2024           December 31, 2023       Average Useful Life (in Years)     Gross Carrying Amount     Accumulated Amortization     Net Carrying Amount     Gross Carrying Value     Accumulated Amortization     Net Carrying Amount   Developed technology - Magiclytics        5     $ 672,903     $ 268,142     $ 404,761     $ 647,743     $ 202,161     $ 445,582   Developed technology - Magiclytics     -       -       -       -       -       -       -               $ 672,903     $ 268,142     $ 404,761     $ 647,743     $ 202,161     $ 445,582

v3.24.2.u1

ACCOUNTS PAYABLE AND ACCRUED LIABILITES (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	Accrued liabilities at June 30, 2024 and 2022 consist of the following:   SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES     June 30, 2024     December 31, 2023   Accounts payable   $ 10,051     $ 9,747   Accrued payroll     570,000       370,000   Accrued interest     1,928,323       1,626,590   Other     121,100       121,520   Accounts payable and accrued liabilities   $ 2,629,474     $ 2,127,857

v3.24.2.u1

CONVERTIBLE NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
SCHEDULE OF PREPAID CONVERTIBLE NOTES PAYABLE	SCHEDULE OF PREPAID CONVERTIBLE NOTES PAYABLE Prepay Date   Prepay Amount On or before 30 days   115% of principal plus accrued interest 31 – 60 days   120% of principal plus accrued interest 61 – 90 days   125% of principal plus accrued interest 91 – 120 days   130% of principal plus accrued interest 121 – 150 days   135% of principal plus accrued interest 151 – 180 days   140% of principal plus accrued interest
SCHEDULE OF CONVERTIBLE PROMISSORY NOTE	Below is the summary of the principal balance and debt discounts as of June 30, 2024 and December 31, 2023.   SCHEDULE OF CONVERTIBLE PROMISSORY NOTE Convertible Promissory Note Holder   Start Date   End Date   Initial Note Principal Balance     Current Note Principal Balance     Debt Discounts As of Issuance     Amortization     Debt Discounts As of June 30, 2024   GS Capital #2   2/16/2022   2/16/2022     577,778       -       577,778       (577,778 )     -   GS Capital #2 - replacement   6/29/2022   8/16/2022     635,563       -       -       -       -   GS Capital #3   3/16/2022   3/16/2022     577,778       577,778       577,778       (577,778 )     -   GS Capital #4   4/1/2022   4/1/2022     550,000       550,000       550,000       (550,000 )     -   Eagle Equities LLC   4/13/2022   4/13/2022     1,100,000       1,100,000       1,100,000       (1,100,000 )     -   GS Capital #5   4/29/2022   4/29/2022     550,000       550,000       550,000       (550,000 )     -   GS Capital #6   6/3/2022   6/3/2022     550,000       550,000       550,000       (550,000 )     -   Chris Etherington   8/26/2022   8/26/2022     165,000       165,000       165,000       (165,000 )     -   Rui Wu   8/26/2022   8/26/2022     550,000       550,000       550,000       (550,000 )     -   Sixth Street Lending #1   11/28/2022   11/28/2022     224,000       -       173,894       (173,894 )     -   Sixth Street Lending #2   12/9/2022   12/9/2022     93,500       -       79,118       (79,118 )     -   Fast Capital LLC   1/10/2022   1/10/2023     120,000       120,000       120,000       (120,000 )     -   Sixth Street Lending #3   1/12/2022   1/12/2023     70,125       -       50,748       (50,748 )     -   One 44 Capital   2/16/2022   2/16/2023     175,500       -       148,306       (135,000 )     -   Coventry Enterprise   3/3/2022   3/3/2023     150,000       -       150,000       (150,000 )     -   One 44 Capital #2   5/20/2022   5/20/2023     115,000       -       115,000       (115,000 )     -   1800 Diagonal Lending LLC   6/23/2022   6/23/2023     86,625       -       86,625       (86,625 )     -   1800 Diagonal Lending LLC   7/8/2022   7/8/2023     61,813       -       61,813       (61,813 )     -   Total                                     Total     $ -                                         Remaining note principal balance       4,162,778                                         Total convertible promissory notes, net     $ 4,162,778
SCHEDULE OF FUTURE MATURITIES OF CONVERTIBLE NOTES PAYABLE	Future payments of principal of convertible notes payable at June 30, 2024 are as follows:   SCHEDULE OF FUTURE MATURITIES OF CONVERTIBLE NOTES PAYABLE Years ending December 31,       2024   $ (4,162,778 ) 2025     -   2026     -   Thereafter     -   Total   $ (4,162,778 )

v3.24.2.u1

SHARES ISSUED - LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2024
Shares Issued - Liability
SCHEDULE OF SHARES TO BE ISSUED LIABILITY	Shares to be issued - liability is summarized as below:  SCHEDULE OF SHARES TO BE ISSUED LIABILITY           Beginning Balance, January 1, 2023   $ 573,333   Shares to be issued     300,000   Shares issued     (555,291 ) Ending Balance, December 31, 2023   $ 318,042     Shares to be issued - liability is summarized as below:             Beginning Balance, January 1, 2024   $ 318,042   Shares to be issued     150,000   Shares issued     0   Ending Balance, June 30, 2024   $ 468,042

v3.24.2.u1

DERIVATIVE LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
SCHEDULE OF DERIVATIVE LIABILITY ASSUMPTIONS INPUT	The Binomial model with the following assumption inputs:  SCHEDULE OF DERIVATIVE LIABILITY ASSUMPTIONS INPUT     December 31, 2023   Annual Dividend Yield     —   Expected Life (Years)     0.1 – 0.7 years   Risk-Free Interest Rate     5.26% - 5.53 % Expected Volatility     570-703 %       June 30, 2024   Annual Dividend Yield     —   Expected Life (Years)     0.1 – 0.7 years   Risk-Free Interest Rate     5.33 % Expected Volatility     593 %
SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY	Fair value of the derivative is summarized as below:  SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY           Beginning Balance, December 31, 2022   $ 799,988   Additions     -   Mark to Market     335,722   Cancellation of Derivative Liabilities Due to Conversions     -   Reclassification to APIC Due to Conversions     (261,797 ) Ending Balance, December 31, 2023   $ 873,913     Fair value of the derivative is summarized as below:             Beginning Balance, December 31, 2023   $ 873,913   Additions     -   Mark to Market     1,301,105   Cancellation of Derivative Liabilities Due to Conversions     -   Reclassification to Other Income (Loss) Due to Conversions     -   Ending Balance, June 30, 2024   $ 2,175,018

v3.24.2.u1

STOCKHOLDERS’ EQUITY (DEFICIT) (Tables)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
SUMMARY OF WARRANTS ACTIVITY	A summary of the Company’s stock warrants activity is as follows:   SUMMARY OF WARRANTS ACTIVITY     Number of Options (in thousands)     Weighted- Average Exercise Price     Weighted- Average Contractual Term (in years)     Aggregate Intrinsic Value   Outstanding at December 31, 2023     165,077     $ 2.05       2.65       -   Issued     -       -       -       -   Exercised     -       -       -       -   Canceled     -       -       -       -   Outstanding at June 30, 2024     165,077     $ 2.05       2.15     $ -   Vested and expected to vest at June 30, 2024     165,077     $ 2.05       2.15     $ -   Exercisable at June 30, 2024     165,077     $ 2.05       2.15     $ -
SCHEDULE OF FAIR VALUE OF STOCK OPTIONS GRANTED ASSUMPTIONS	The fair values of warrants granted in 2021 were estimated using the Black-Scholes option pricing model on the grant date using the following assumptions:   SCHEDULE OF FAIR VALUE OF STOCK OPTIONS GRANTED ASSUMPTIONS Dividend yield   — % Expected term (in years)     5   Volatility     368 - 369 %

v3.24.2.u1

ORGANIZATION AND OPERATIONS (Details Narrative) - USD ($)	May 29, 2020	Dec. 27, 2006	Jun. 30, 2024	Dec. 31, 2023	Nov. 15, 2022	Jun. 23, 2022	Jun. 13, 2022	Apr. 19, 2022	Nov. 12, 2020	Jul. 07, 2020	May 19, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of shares issued			16,372,179,486	16,372,179,486
Authorized capital stock					25,050,000,000					550,000,000
Common stock, shares authorized			25,000,000,000	25,000,000,000	25,000,000,000	8,000,000,000		2,000,000,000		500,000,000
Common stock par value			$ 0.000001	$ 0.000001	$ 0.000001		$ 0.001			$ 0.001
Preferred stock, shares authorized			50,000,000	50,000,000	50,000,000					50,000,000
Preferred stock par value			$ 0.001	$ 0.001	$ 0.001					$ 0.001
West of Hudson Group, Inc. [Member] | WOH Brands, LLC, Oopsie Daisy Swimwear, LLC, and DAK Brands, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Business acquisition, acquired percentage											100.00%
West of Hudson Group, Inc. [Member] | Doiyen LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Business acquisition, acquired percentage										100.00%
Share Exchange Agreement With NTH [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Share exchange agreement description		Tongji, Inc. acquired 100% of the equity in NTH pursuant to an Agreement and Plan of Merger, pursuant to which NTH became a wholly owned subsidiary of Tongji, Inc. Pursuant to the Agreement and Plan of Merger, the Company issued 15,652,557 shares of common stock to the stockholders of NTH in exchange for 100% of the issued and outstanding shares of common stock of NTH.
Ownership interest acquired under share exchange agreement		100.00%
Number of shares issued		15,652,557
Stock Purchase Agreement [Member] | Joseph Arcaro [Member] | West of Hudson Group, Inc. [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Ownership interest acquired under share exchange agreement	65.00%
Sale of stock, shares	30,000,000
Sale of stock, value	$ 240,000
Merger Agreement [Member] | Security Holders [Member] | West of Hudson Group, Inc. [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Business acquisition, acquired percentage									50.54%

v3.24.2.u1

SCHEDULE OF PROPERTY AND EQUIPMENT, NET ESTIMATED USEFUL LIVES (Details)	Jun. 30, 2024
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful life	3 years

v3.24.2.u1

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED EARNING PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Net income (loss) from continuing operations	$ (380,293)	$ (346,053)	$ (2,129,443)	$ (2,204,792)
Weighted average common shares outstanding—basic	16,372,179,486	8,480,503,383	16,372,179,486	8,109,652,138
Dilutive common stock equivalents
Weighted average common shares outstanding—diluted	16,372,179,486	8,480,503,383	16,372,179,486	8,109,652,138
Basic	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)

v3.24.2.u1

SCHEDULE OF ASSETS AND LIABILITIES UNDER FAIR VALUE HIERARCHY (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Platform Operator, Crypto Asset [Line Items]
Derivative liability	$ 2,175,018	$ 873,913
Total	2,175,018	873,913
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Derivative liability
Total
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto Asset [Line Items]
Derivative liability
Total
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Derivative liability	2,175,018	873,913
Total	$ 2,175,018	$ 873,913

v3.24.2.u1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jul. 31, 2022
Property, Plant and Equipment [Line Items]
Advertising expenses	$ 1,196	$ 9,131	$ 3,887	$ 24,174
Bad debt allowances for accounts receivable	0		0		$ 79
Deferred revenue
Capitalized computer software net	21,335	$ 62,825	21,335	62,825
Capitalized computer software amortization			66,247	61,644
Unamortized cost of capitalized software	404,495		404,495		$ 445,582
Impairment of goodwill			0	0
Impairment loss
Convertible Debt Securities [Member]
Property, Plant and Equipment [Line Items]
Potential shares issuable upon conversion of convertible notes payable			7,435,097,663		8,865,097,663
Warrant [Member]
Property, Plant and Equipment [Line Items]
Potential shares issuable upon conversion of convertible notes payable			165,077	165,077
Discontinued Operations [Member]
Property, Plant and Equipment [Line Items]
Bad debt allowances for accounts receivable	$ 2,085		$ 2,085		$ 2,956
Joint Venture Agreement [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Ownership percentage						50.00%

v3.24.2.u1

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Profit loss	$ (466,607)	$ (359,764)	$ (2,225,950)	$ (2,437,964)
Working capital deficit	(9,833,417)		(9,833,417)
Stockholders equity	$ (9,415,795)	$ (9,864,589)	$ (9,415,795)	$ (9,864,589)	$ (8,948,910)	$ (7,190,800)	$ (9,526,949)	$ (7,678,236)

v3.24.2.u1

SCHEDULE OF FIXED ASSET, NET (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	$ (105,777)	$ (101,931)
Property, plant, and equipment, net,	12,861	16,707
Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment	$ 118,638	$ 118,638
Estimated Useful Life	3 years

v3.24.2.u1

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expenses	$ 3,701	$ 5,991	$ 3,847	$ 14,921

v3.24.2.u1

SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS ACQUIRED AS PART OF BUSINESS COMBINATION (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Gross Carrying Amount	$ 672,903	$ 647,743
Accumulated Amortization	268,142	202,161
Net Carrying Amount	$ 404,761	445,582
Developed Technology - Magiclytics [Member]
Restructuring Cost and Reserve [Line Items]
Weighted Average Useful Life (in Years)	5 years
Gross Carrying Amount	$ 672,903	647,743
Accumulated Amortization	268,142	202,161
Net Carrying Amount	404,761	445,582
Developed Technology - Magiclytics 1 [Member]
Restructuring Cost and Reserve [Line Items]
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount

v3.24.2.u1

INTANGIBLES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	$ 404,761		$ 404,761		$ 445,582
Amortization expenses	$ 33,391	$ 31,502	$ 65,981	$ 61,643

v3.24.2.u1

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 10,051	$ 9,747
Accrued payroll	570,000	370,000
Accrued interest	1,928,323	1,626,590
Other	121,100	121,520
Accounts payable and accrued liabilities	$ 2,629,474	$ 2,127,857

v3.24.2.u1

SCHEDULE OF PREPAID CONVERTIBLE NOTES PAYABLE (Details)	6 Months Ended
	Jun. 30, 2024
Convertible Note Payable [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	30 days
Debt Instrument prepayment percentage	115.00%
Convertible Note Payable One [Member]
Short-Term Debt [Line Items]
Debt Instrument prepayment percentage	120.00%
Convertible Note Payable One [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	31 days
Convertible Note Payable One [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	60 days
Convertible Note Payable Two [Member]
Short-Term Debt [Line Items]
Debt Instrument prepayment percentage	125.00%
Convertible Note Payable Two [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	61 days
Convertible Note Payable Two [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	90 days
Convertible Note Payable Three [Member]
Short-Term Debt [Line Items]
Debt Instrument prepayment percentage	130.00%
Convertible Note Payable Three [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	91 days
Convertible Note Payable Three [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	120 days
Convertible Note Payable Four [Member]
Short-Term Debt [Line Items]
Debt Instrument prepayment percentage	135.00%
Convertible Note Payable Four [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	121 days
Convertible Note Payable Four [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	150 days
Convertible Note Payable Five [Member]
Short-Term Debt [Line Items]
Debt Instrument prepayment percentage	140.00%
Convertible Note Payable Five [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	151 days
Convertible Note Payable Five [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Debt instrument prepayment period	180 days

v3.24.2.u1

SCHEDULE OF CONVERTIBLE PROMISSORY NOTE (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Short-Term Debt [Line Items]
Amortization		$ (140,114)
Debt Discounts
Remaining note principal balance	4,162,778
Total convertible promissory notes, net	$ 4,162,778		$ 4,162,778
GS Capital Partners, LLC #2 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Feb. 16, 2022		Feb. 16, 2022
End Date	Feb. 16, 2022		Feb. 16, 2022
Initial Note Principal Balance	$ 577,778		$ 577,778
Current Note Principal Balance
Debt Discounts As of Issuance	577,778
Amortization	(577,778)
Debt Discounts
GSCapital Partners LLC #2 Replacement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Jun. 29, 2022		Jun. 29, 2022
End Date	Aug. 16, 2022		Aug. 16, 2022
Initial Note Principal Balance	$ 635,563		$ 635,563
Current Note Principal Balance
Debt Discounts As of Issuance
Amortization
Debt Discounts
GS Capital Partners, LLC #3 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Mar. 16, 2022		Mar. 16, 2022
End Date	Mar. 16, 2022		Mar. 16, 2022
Initial Note Principal Balance	$ 577,778
Current Note Principal Balance	577,778		$ 577,778
Debt Discounts As of Issuance	577,778
Amortization	(577,778)
Debt Discounts
GS Capital Partners, LLC #4 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Apr. 01, 2022		Apr. 01, 2022
End Date	Apr. 01, 2022		Apr. 01, 2022
Initial Note Principal Balance	$ 550,000		$ 550,000
Current Note Principal Balance	550,000		$ 550,000
Debt Discounts As of Issuance	550,000
Amortization	(550,000)
Debt Discounts
Eagle Equities LLC [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Apr. 13, 2022		Apr. 13, 2022
End Date	Apr. 13, 2022		Apr. 13, 2022
Initial Note Principal Balance	$ 1,100,000		$ 1,100,000
Current Note Principal Balance	1,100,000		$ 1,100,000
Debt Discounts As of Issuance	1,100,000
Amortization	(1,100,000)
Debt Discounts
GS Capital Partners, LLC #5 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Apr. 29, 2022		Apr. 29, 2022
End Date	Apr. 29, 2022		Apr. 29, 2022
Initial Note Principal Balance	$ 550,000		$ 550,000
Current Note Principal Balance	550,000		$ 550,000
Debt Discounts As of Issuance	550,000
Amortization	(550,000)
Debt Discounts
GS Capital Partners, LLC #6 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Jun. 03, 2022		Jun. 03, 2022
End Date	Jun. 03, 2022		Jun. 03, 2022
Initial Note Principal Balance	$ 550,000		$ 550,000
Current Note Principal Balance	550,000		$ 550,000
Debt Discounts As of Issuance	550,000
Amortization	(550,000)
Debt Discounts
Chris Etherington [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Aug. 26, 2022		Aug. 26, 2022
End Date	Aug. 26, 2022		Aug. 26, 2022
Initial Note Principal Balance	$ 165,000		$ 165,000
Current Note Principal Balance	165,000		$ 165,000
Debt Discounts As of Issuance	165,000
Amortization	(165,000)
Debt Discounts
Rui Wu [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Aug. 26, 2022		Aug. 26, 2022
End Date	Aug. 26, 2022		Aug. 26, 2022
Initial Note Principal Balance	$ 550,000		$ 550,000
Current Note Principal Balance	550,000		$ 550,000
Debt Discounts As of Issuance	550,000
Amortization	(550,000)
Debt Discounts
Sixth Street Lending #1 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Nov. 28, 2022		Nov. 28, 2022
End Date	Nov. 28, 2022		Nov. 28, 2022
Initial Note Principal Balance	$ 224,000		$ 224,000
Current Note Principal Balance
Debt Discounts As of Issuance	173,894
Amortization	(173,894)
Debt Discounts
Sixth Street Lending #2 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Dec. 09, 2022		Dec. 09, 2022
End Date	Dec. 09, 2022		Dec. 09, 2022
Initial Note Principal Balance	$ 93,500		$ 93,500
Current Note Principal Balance
Debt Discounts As of Issuance	79,118
Amortization	(79,118)
Debt Discounts
Fast Capital LLC [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Jan. 10, 2022		Jan. 10, 2022
End Date	Jan. 10, 2023		Jan. 10, 2023
Initial Note Principal Balance	$ 120,000		$ 120,000
Current Note Principal Balance	120,000		$ 120,000
Debt Discounts As of Issuance	120,000
Amortization	(120,000)
Debt Discounts
Sixth Street Lending #3 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Jan. 12, 2022		Jan. 12, 2022
End Date	Jan. 12, 2023		Jan. 12, 2023
Initial Note Principal Balance	$ 70,125		$ 70,125
Current Note Principal Balance
Debt Discounts As of Issuance	50,748
Amortization	(50,748)
Debt Discounts
One 44 Capital [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Feb. 16, 2022		Feb. 16, 2022
End Date	Feb. 16, 2023		Feb. 16, 2023
Initial Note Principal Balance	$ 175,500		$ 175,500
Current Note Principal Balance
Debt Discounts As of Issuance	148,306
Amortization	(135,000)
Debt Discounts
Conventry Enterprise, LLC [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Mar. 03, 2022		Mar. 03, 2022
End Date	Mar. 03, 2023		Mar. 03, 2023
Initial Note Principal Balance	$ 150,000		$ 150,000
Current Note Principal Balance
Debt Discounts As of Issuance	150,000
Amortization	(150,000)
Debt Discounts
One 44 Capital #2 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	May 20, 2022		May 20, 2022
End Date	May 20, 2023		May 20, 2023
Initial Note Principal Balance	$ 115,000		$ 115,000
Current Note Principal Balance
Debt Discounts As of Issuance	115,000
Amortization	(115,000)
Debt Discounts
1800 Diagonal Lending LLC [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Jun. 23, 2022		Jun. 23, 2022
End Date	Jun. 23, 2023		Jun. 23, 2023
Initial Note Principal Balance	$ 86,625		$ 86,625
Current Note Principal Balance
Debt Discounts As of Issuance	86,625
Amortization	(86,625)
Debt Discounts
1800 Diagonal Lending LLC [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Start Date	Jul. 08, 2022		Jul. 08, 2022
End Date	Jul. 08, 2023		Jul. 08, 2023
Initial Note Principal Balance	$ 61,813		$ 61,813
Current Note Principal Balance
Debt Discounts As of Issuance	61,813
Amortization	(61,813)
Debt Discounts

v3.24.2.u1

SCHEDULE OF FUTURE MATURITIES OF CONVERTIBLE NOTES PAYABLE (Details)	Jun. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2024	$ (4,162,778)
2025
2026
Thereafter
Total	$ (4,162,778)

v3.24.2.u1

CONVERTIBLE NOTES PAYABLE (Details Narrative)															3 Months Ended						6 Months Ended		12 Months Ended
	Feb. 17, 2023 USD ($)	Jul. 08, 2022 USD ($) Days $ / shares	Jun. 29, 2022 USD ($) $ / shares	Jun. 23, 2022 USD ($) Days $ / shares	May 20, 2022 USD ($)	Mar. 16, 2022 USD ($) $ / shares shares	Feb. 16, 2022 USD ($) $ / shares	Jan. 13, 2022 USD ($)	Aug. 27, 2021 USD ($) $ / shares shares	Jun. 03, 2021 USD ($) $ / shares shares	Apr. 29, 2021 USD ($) $ / shares shares	Apr. 13, 2021 USD ($) $ / shares shares	Apr. 01, 2021 USD ($) $ / shares shares	Feb. 19, 2021 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares shares	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($) shares	Sep. 30, 2022 USD ($) shares	Jun. 30, 2022 USD ($)	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) $ / shares	May 11, 2023 USD ($)	May 10, 2023 USD ($)	Mar. 07, 2023 USD ($)	Nov. 15, 2022 $ / shares	Jun. 13, 2022 $ / shares	Jul. 07, 2020 $ / shares
Short-Term Debt [Line Items]
Principal amount															$ 4,162,778						$ 4,162,778
Unamortized discount
Common stock value per share | $ / shares															$ 0.000001	$ 0.000001					$ 0.000001		$ 0.000001				$ 0.000001	$ 0.001	$ 0.001
Common stock purchase per share																							$ 1,197,501
Amortization of debt issuance costs																						$ 140,114
Derivative liabilities															$ 2,175,018	$ 873,913					2,175,018		$ 873,913
Amortization of debt discount premium																	$ 13,153					140,144
Convertible Promissory Note [Member] | Rui Wu [Member]
Short-Term Debt [Line Items]
Unamortized discount
Maturity date																					Aug. 26, 2022		Aug. 26, 2022
Amortization of debt issuance costs																					$ 550,000
Notes balance															550,000	550,000					550,000		$ 550,000
Convertible Notes Payable [Member]
Short-Term Debt [Line Items]
Interest expense for notes payable																					301,732	371,762
Amortization of debt discount premium																					0	$ 140,144
Purchase Agreement [Member] | Convertible Promissory Note [Member] | Rui Wu [Member]
Short-Term Debt [Line Items]
Principal amount									$ 550,000
Proceeds from convertible debt									500,000
Unamortized discount									$ 50,000
Sale of stock price per share | $ / shares									$ 0.001
Maturity date									Aug. 26, 2022
Debt interest rate									10.00%
Debt conversion description									The Rui Wu Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of Company Common Stock at any time following August 26, 2021, until the note is repaid. The conversion price per share of Common Stock shall initially mean the lesser of (i) $1.00 or (ii) 75% of the lowest daily volume weighted average price of the Common Stock during the 20 Trading Days (as defined in the Rui Wu Note) immediately preceding the date of the respective conversion. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.
Debt original discount amount									$ 50,000
Conversion of beneficial share | shares									125,000
Convertible notes payable									$ 550,000						550,000	550,000					550,000		550,000
Class of warrant to purchase | shares									125,000
Warrant exercisable | $ / shares									$ 2.00
Accretion expenses									$ 514,850
Fast Capital Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount								$ 120,000
Unamortized discount								$ 10,000
Maturity date								Jan. 10, 2023
Debt interest rate								10.00%
Convertible notes payable															120,000	120,000					120,000		120,000
Proceeds from issuance of debt								$ 110,000
Debt instrument, description								The Buyer has the right from time to time, and at any time after 180 days to convert all or any part of the outstanding and unpaid principal amount of the Note into common stock, subject to a 4.99% equity blocker.
ONE44 Capital Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount							$ 175,500
Unamortized discount							17,500
Reimbursement amount							$ 8,000
Maturity date							Feb. 16, 2023
Debt interest rate							4.00%
Debt original discount amount							$ 17,500											$ 45,000
Debt interest rate							65.00%
Convertible notes payable															0	0					0		0
Proceeds from issuance of debt							$ 158,000
Debt instrument, description							The Buyer has the right from time to time, and at any time during the period beginning on the date that is 180 days following February 16, 2022 and ending on the later of (i) February 16, 2023, and (ii) the date of payment of the Default Amount (as defined in the Note), to convert all or any part of the outstanding and unpaid principal amount of the Note into common stock, subject to a 4.99% equity blocker.
Debt effective interest rate							24.00%
Debt conversion price | $ / shares							$ 1.00
Convertible debt							$ 148,306
ONE44 Capital Purchase Agreement # 2 [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount					$ 115,000
Unamortized discount					10,000
Reimbursement amount					$ 5,000
Maturity date					May 20, 2023
Debt interest rate					4.00%
Debt original discount amount					$ 10,000												20,000	20,000
Debt interest rate					55.00%
Convertible notes payable															0	0					0		0
Proceeds from issuance of debt					$ 100,000
Debt instrument, description					ONE44 is entitled, at its option, at any time after the sixth monthly anniversary of cash payment, to convert all or any amount then outstanding under the May 2022 ONE44 Note into shares of common stock at a price per share equal to 55% of the lowest daily trading VWAP of the Company’s common stock for the 20 prior trading days, subject to a 4.99% equity blocker and subject to the terms of the May 2022 ONE44 Note
Debt effective interest rate					24.00%
Convertible debt					$ 95,000
Conversion of interest into common shaes																	$ 770
GS Capital Partners, LLC [Member] | Securities Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount						$ 577,778				$ 550,000	$ 550,000		$ 550,000	$ 577,778
Proceeds from convertible debt						520,000				500,000	500,000		500,000	520,000
Unamortized discount						$ 57,778				$ 50,000	$ 50,000		$ 50,000	$ 57,778
Sale of stock, number of shares issued in transaction | shares						100,000				85,000	125,000		45,000	100,000
Common stock value per share | $ / shares						$ 0.000001					$ 0.001		$ 0.001	$ 0.001
Common stock purchase per share						$ 100				$ 85	$ 125		$ 45	$ 100
Sale of stock price per share | $ / shares						$ 0.001				$ 0.001	$ 0.001		$ 0.001	$ 0.001
Reimbursement amount						$ 10,000				$ 5,000	$ 5,000		$ 10,000	$ 10,000
Maturity date						Mar. 22, 2022				Jun. 03, 2022	Apr. 29, 2022		Apr. 01, 2022	Feb. 19, 2022
Debt interest rate						10.00%				10.00%	10.00%		10.00%	10.00%
Debt conversion description						The GS Capital #3 Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned Regulation A Offering. At such time, the GS Capital #3 Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.				The GS Capital Note #6 (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note #6 (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.	The GS Capital Note #5 (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Company Common Stock”) at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note #5 (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.		The GS Capital Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the GS Capital Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.	The GS Capital #2 Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at GS Capital’s election at any time following the time that the Securities and Exchange Commission (“SEC”) qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act of 1933, as amended (the “Regulation A Offering”). At such time, the GS Capital #2 Note (and the principal amount and any accrued and unpaid interest) will be convertible at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by GS Capital on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.
Debt original discount amount						$ 57,778				$ 50,000	$ 50,000		$ 50,000	$ 57,778
Conversion of beneficial share | shares						100,000				85,000	125,000		45,000	100,000
Amortization of debt issuance costs						$ 577,778				$ 550,000	$ 550,000		$ 550,000	$ 577,778
GS Capital Partners, LLC #2 [Member] | Exchange Agreement [Member]
Short-Term Debt [Line Items]
Principal amount			$ 577,778													20,000		$ 65,000	$ 421,063				20,000
Common stock value per share | $ / shares			$ 0.000001
Convertible beneficial conversion feature			$ 635,563.48
Debt interest rate			85.00%
Principal reduction																				$ 188,771
Derivative liabilities																				$ 416,588
Accrued interest																$ 4,662			$ 4,690
Number of common shares | shares																296,380,352			378,633,891
Number of shares issued | shares																		481,221,646
Convertible notes payable															0						0
GS Capital Partners, LLC #3 [Member] | Restructuring Agreement [Member]
Short-Term Debt [Line Items]
Convertible notes payable															577,778	$ 577,778					577,778		577,778
GS Capital Partners, LLC #4 [Member] | Restructuring Agreement [Member]
Short-Term Debt [Line Items]
Convertible notes payable															550,000	550,000					550,000		550,000
GS Capital Partners, LLC #5 [Member] | Restructuring Agreement [Member]
Short-Term Debt [Line Items]
Convertible notes payable															550,000	550,000					550,000		550,000
GS Capital Partners, LLC #6 [Member] | Restructuring Agreement [Member]
Short-Term Debt [Line Items]
Convertible notes payable															550,000	550,000					550,000		550,000
Eagle Equities LLC [Member] | Securities Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount												$ 1,100,000
Proceeds from convertible debt												1,000,000
Unamortized discount												$ 100,000
Sale of stock, number of shares issued in transaction | shares												165,000
Common stock value per share | $ / shares												$ 0.001
Common stock purchase per share												$ 165.00
Sale of stock price per share | $ / shares												$ 0.001
Reimbursement amount												$ 10,000
Maturity date												Apr. 13, 2022
Debt interest rate												10.00%
Debt conversion description												The Eagle Equities Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of the Company Common Stock at Eagle Equities’ election at any time following the time that the SEC qualifies the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act. At such time, the Eagle Equities Note (and the principal amount and any accrued and unpaid interest) will be convertible in restricted shares of Company Common Stock at a conversion price equal to 70% of the initial offering price of the Company Common Stock in the Regulation A Offering, subject to a customary beneficial ownership limitation of 9.99%, which may be waived by Eagle Equities on 61 days’ notice to the Company. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price. Alternatively, if the SEC has not qualified the Company’s offering statement related to the Company’s planned offering of Company Common Stock pursuant to Regulation A under the Securities Act by October 10, 2021, and Eagle Equities Note has not yet been fully repaid, then Eagle Equities will have the right to convert the Eagle Equities Note (and the principal amount and any accrued and unpaid interest) into restricted shares of Company Common Stock at a conversion price of $6.50 per share (subject to customary adjustments for any stock splits, etc., which occur following April 13, 2021)
Debt original discount amount												$ 100,000
Conversion of beneficial share | shares												165,000
Amortization of debt issuance costs												$ 1,100,000
Convertible notes payable															1,100,000	1,100,000					1,100,000		1,100,000
Proceeds from issuance of debt												$ 3,500,000
Chris Etherington [Member]
Short-Term Debt [Line Items]
Debt interest rate									18.00%
Chris Etherington [Member] | Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount									$ 165,000
Proceeds from convertible debt									150,000
Unamortized discount									$ 15,000
Sale of stock price per share | $ / shares									$ 0.001
Maturity date									Aug. 26, 2022
Debt interest rate									10.00%
Debt conversion description									The Chris Etherington Note (and the principal amount and any accrued and unpaid interest) is convertible into shares of Company Common Stock at any time following August 26, 2021, until the note is repaid. The conversion price per share of Common Stock shall initially mean the lesser of (i) $1.00 or (ii) 75% of the lowest daily volume weighted average price of the Common Stock during the 20 Trading Days (as defined in the Chris Etherington Note) immediately preceding the date of the respective conversion. The conversion price is subject to customary adjustments for any stock splits, etc. which occur following the determination of the conversion price.
Debt original discount amount									$ 15,000
Conversion of beneficial share | shares									37,500
Convertible notes payable									$ 165,000						165,000	165,000					165,000		165,000
Class of warrant to purchase | shares									37,500
Warrant exercisable | $ / shares									$ 2.00
Accretion expenses									$ 160,538
ONE44 Capital Purchase Agreement [Member] | Debt Repayment and Release Agreement [Member]
Short-Term Debt [Line Items]
Principal amount																										$ 90,000
Debt interest rate																										4.00%
Notes balance																										$ 88,738
Debt settlement																										$ 88,738
ONE44 Capital Purchase Agreement # 2 [Member] | Debt Repayment and Release Agreement [Member]
Short-Term Debt [Line Items]
Principal amount																									$ 75,000
Debt interest rate																									4.00%
Notes balance																									$ 77,893
Debt settlement																								$ 77,893
Diagonal Lending LLC [Member] | Securities Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount		$ 61,812
Unamortized discount		$ 5,375
Maturity date		Jul. 08, 2023
Debt interest rate		10.00%
Debt original discount amount		$ 5,375
Debt interest rate		75.00%
Convertible notes payable		$ 61,812													0	0					0		0
Proceeds from issuance of debt		$ 52,688
Debt instrument, description		The Note provides Investor with conversion rights to convert all or any part of the outstanding and unpaid principal amount of the Note at any time, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Note and ending on the later of: (i) the Maturity Date; and (ii) the date of payment of the Default Amount (as defined in the Note). Notwithstanding the foregoing, the Investor shall not be entitled to a conversion under the Note upon which the sum of (1) the number of shares of common stock, $0.000001 par value per share (“Common Stock”) beneficially owned by the Investor and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised or unconverted portion of any other security of the Company subject to a similar limitation on conversion or exercise) and (2) the number of shares of Common Stock issuable upon the conversion would result in beneficial ownership by the Investor and its affiliates of more than 4.99% of the outstanding shares of Common Stock.
Debt conversion price | $ / shares		$ 1.00
Legal fee		$ 3,750
Tradings days | Days		20
Diagonal Lending LLC [Member] | Sixth Street #4 Purchase Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Principal amount				$ 86,625
Unamortized discount				$ 7,875
Maturity date				Jun. 23, 2023
Debt interest rate				10.00%
Debt original discount amount				$ 11,625
Debt interest rate				75.00%
Principal reduction																		$ 46,500
Convertible notes payable				$ 86,625											$ 0	$ 0					$ 0		$ 0
Proceeds from issuance of debt				$ 75,000
Debt instrument, description				The Note provides Investor with conversion rights to convert all or any part of the outstanding and unpaid principal amount of the Note at any time, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of the Note and ending on the later of: (i) the Maturity Date; and (ii) the date of payment of the Default Amount (as defined in the Note). Notwithstanding the foregoing, the Investor shall not be entitled to a conversion under the Note upon which the sum of (1) the number of shares of common stock, $0.000001 par value per share (“Common Stock”) beneficially owned by the Investor and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Note or the unexercised or unconverted portion of any other security of the Company subject to a similar limitation on conversion or exercise) and (2) the number of shares of Common Stock issuable upon the conversion would result in beneficial ownership by the Investor and its affiliates of more than 4.99% of the outstanding shares of Common Stock.
Debt conversion price | $ / shares				$ 1.00
Legal fee				$ 3,000.00
Diligence fee				$ 750.00
Tradings days | Days				20
1800 Diagonal Lending LLC [Member] | Settlement and Release Agreement [Member] | Convertible Promissory Note [Member]
Short-Term Debt [Line Items]
Notes balance	$ 45,479
Notes balance	$ 105,000

v3.24.2.u1

SCHEDULE OF SHARES TO BE ISSUED LIABILITY (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Shares Issued - Liability
Beginning Balance, January 1, 2024	$ 318,042	$ 573,333
Shares to be issued	150,000	300,000
Shares issued	0	(555,291)
Ending Balance, June 30, 2024	$ 468,042	$ 318,042

v3.24.2.u1

SHARES ISSUED - LIABILITY (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Shares Issued - Liability
Shares to be issued - liability	$ 468,042	$ 318,042	$ 573,333

v3.24.2.u1

SCHEDULE OF DERIVATIVE LIABILITY ASSUMPTIONS INPUT (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Measurement Input, Expected Dividend Rate [Member]
Derivative [Line Items]
Derivative liability, measurement input
Measurement Input, Expected Term [Member] | Minimum [Member]
Derivative [Line Items]
Expected Life (Years)	1 month 6 days	1 month 6 days
Measurement Input, Expected Term [Member] | Maximum [Member]
Derivative [Line Items]
Expected Life (Years)	8 months 12 days	8 months 12 days
Measurement Input, Risk Free Interest Rate [Member]
Derivative [Line Items]
Derivative liability, measurement input	5.33
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input		5.26
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input		5.53
Measurement Input, Option Volatility [Member]
Derivative [Line Items]
Derivative liability, measurement input	593
Measurement Input, Option Volatility [Member] | Minimum [Member]
Derivative [Line Items]
Derivative liability, measurement input		570
Measurement Input, Option Volatility [Member] | Maximum [Member]
Derivative [Line Items]
Derivative liability, measurement input		703

v3.24.2.u1

SCHEDULE OF FAIR VALUE OF DERIVATIVE LIABILITY (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Beginning Balance, December 31, 2023	$ 873,913	$ 799,988
Additions
Mark to Market	1,301,105	335,722
Cancellation of Derivative Liabilities Due to Conversions
Reclassification to Other Income (Loss) Due to Conversions		(261,797)
Ending Balance, June 30, 2024	$ 2,175,018	$ 873,913

v3.24.2.u1

DERIVATIVE LIABILITY (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liability	$ 2,175,018		$ 2,175,018		$ 873,913
Gain (loss) on derivative liability	$ 56,279	$ 245,343	$ (1,301,105)	$ (1,137,479)

v3.24.2.u1

NOTE PAYABLE, RELATED PARTY (Details Narrative) - USD ($)					3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2023	Oct. 07, 2022	Apr. 11, 2022	Oct. 12, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Nov. 15, 2022	Jun. 13, 2022	Jul. 07, 2020
Company borrowed							$ 119,000	$ 1,060,000
Related party notes payable									$ 396,667
Proceeds from issuance of common stock									$ 1,197,501
Common stock par value					$ 0.000001		$ 0.000001		$ 0.000001	$ 0.000001	$ 0.001	$ 0.001
Number of shares issued, value							$ 0		$ (555,291)
Accrued management wages	$ 785,000						300,000
Annual base salary					$ 230,712	$ 339,233	$ 462,345	461,130
Mr.Young [Member]
Accrued management wages	80,000
Mr.Yu [Member]
Accrued management wages	$ 160,000
Director Agreements [Member]
Number of shares issued							31,821
Common stock par value					$ 0.000001		$ 0.000001
Number of shares issued, value							$ 25,000
Restricted Stock Agreement [Member] | Mr Kaplun [Member]
Number of shares restricted		58,824
Shares vesting percentage		25.00%
Director Agreement [Member] | Mr Musina [Member]
Number of shares issued, value				$ 25,000
Ben Yohanan Employment Agreement [Member] | Amir Ben-Yohanan [Member]
Annual base salary			$ 400,000
Monthly cash payment			15,000
Remaining base salary			$ 220,000
Mr.Ben-Yohanan [Member]
Company borrowed							119,000	$ 1,060,000
Related Party [Member]
Related party notes payable					$ 369,093		369,093		250,093
Related Party [Member] | Magiclytics [Member]
Due to related parties					$ 97,761		$ 97,761		$ 97,761

v3.24.2.u1

JOINT VENTURE AGREEMENT- CONSOLIDATED SUBSIDIARY (Details Narrative) - USD ($)		3 Months Ended		6 Months Ended
	Jul. 31, 2022	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Salary and wages		$ 230,712	$ 339,233	$ 462,345	$ 461,130
Non-controlling interest		$ (278)	$ (12,158)	$ 955	$ (156,277)
Mr Reiman [Member] | Employment Agreement [Member]
Description of employment agreement term	In connection with Mr. Reiman’s appointment as President of the Agency, on the Effective Date, the Company and the Agency, a majority owned subsidiary of the Company, entered into a written Executive Employment Agreement (the “Employment Agreement”) with Mr. Reiman for a term of two (2) years following the Effective Date (the “Initial Term”). The Initial Term and any renewal term shall automatically be extended for up to two (2) more additional terms of two (2) years (each a “Renewal Term”), for an aggregate of up to six (6) years.
Salary and wages	$ 37,500
Increase of month salary	$ 42,500
Mr Reiman [Member] | Employment Agreement [Member] | Additional Shares [Member]
Net receipts percentage	7.50%
Mr Reiman [Member] | Employment Agreement [Member] | Commission Bonus [Member]
Net receipts percentage	25.00%
Mr Reiman [Member] | Maximum [Member]
Operating lease expense	$ 200,000
Description of excess expenses	Expenses in excess of $400 must be pre-approved by the Company.
Reiman Agency LLC [Member]
Ownership percentage	51.00%
Mr Reiman [Member]
Ownership percentage	49.00%

v3.24.2.u1

SUMMARY OF WARRANTS ACTIVITY (Details) - USD ($) shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Number of Options, Outstanding, Beginning balance	165,077
Weighted Average Exercise Price, Outstanding, Beginning balance	$ 2.05
Weighted Average Remaining Contractual Life (in Years), Outstanding	2 years 1 month 24 days	2 years 7 months 24 days
Aggregate Intrinsic Value, Outstanding
Number of Options, Issued
Weighted Average Exercise Price, Issued
Number of Options, Exercised
Weighted Average Exercise Price, Exercised
Number of Options, Cancelled
Weighted Average Exercise Price, Canceled
Number of Options, Outstanding, Ending balance	165,077	165,077
Weighted Average Exercise Price, Outstanding, Ending balance	$ 2.05	$ 2.05
Aggregate Intrinsic Value, Outstanding
Number of Options, Vested and Expected Ending balance	165,077
Number of Options, Vested and Expected Ending balance	$ 2.05
Weighted Average Remaining Contractual Life (in Years), Vested and Expected	2 years 1 month 24 days
Aggregate Intrinsic Value, Vested and expected
Number of Options, Exercisable Ending balance	165,077
Weighted Average Exercise Price, Exercisable, Ending balance	$ 2.05
Weighted Average Remaining Contractual Life (in Years), Exercisable	2 years 1 month 24 days
Aggregate Intrinsic Value, Exercisable

v3.24.2.u1

SCHEDULE OF FAIR VALUE OF STOCK OPTIONS GRANTED ASSUMPTIONS (Details)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Dividend yield
Expected term (in years)	5 years
Volatility, Minimum	368.00%
Volatility, Maximum	369.00%

v3.24.2.u1

STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($)			1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 11, 2022	Nov. 02, 2021	Nov. 30, 2020	Mar. 31, 2023	Jun. 30, 2024	Dec. 31, 2023	Nov. 15, 2022	Jun. 23, 2022	Jun. 13, 2022	Apr. 19, 2022	Jul. 07, 2020
Class of Stock [Line Items]
Capital stock, shares authorized							25,050,000,000				550,000,000
Common stock, shares authorized					25,000,000,000	25,000,000,000	25,000,000,000	8,000,000,000		2,000,000,000	500,000,000
Common stock, par value					$ 0.000001	$ 0.000001	$ 0.000001		$ 0.001		$ 0.001
Preferred stock, shares authorized					50,000,000	50,000,000	50,000,000				50,000,000
Preferred stock, par value					$ 0.001	$ 0.001	$ 0.001				$ 0.001
Common stock, shares outstanding					16,372,179,486	16,372,179,486
Preferred stock, shares issued					1	1
Preferred stock, shares outstanding					1	1
Common stock, shares issued					16,372,179,486	16,372,179,486
Conversion of convertible debt				$ 184,254
Stock options granted					0
Number of shares issued, value					$ 0	$ (555,291)
2023 Equity Incentive Plan [Member]
Class of Stock [Line Items]
Shares authorized under plan	75,000,000
Allocated share based compensation expense	$ 300,000
Equity Purchase Agreement and Registration Rights Agreement [Member]
Class of Stock [Line Items]
Common stock, par value		$ 0.000001
Number of shares issued, value		$ 15,000,000.00
Trading percentage		250.00%
Number of shares issued		70,000
Equity Purchase Agreement and Registration Rights Agreement [Member] | Minimum [Member]
Class of Stock [Line Items]
Commitment amount		$ 20,000.00
Equity Purchase Agreement and Registration Rights Agreement [Member] | Maximum [Member]
Class of Stock [Line Items]
Commitment amount		$ 400,000.00
Common Stock [Member]
Class of Stock [Line Items]
Conversion of convertible debt, shares				1,431,944,776
Conversion of convertible debt				$ 1,432
Common Stock [Member] | Convertible Promissory Note [Member]
Class of Stock [Line Items]
Conversion of convertible debt, shares						2,105,949,128
Conversion of convertible debt						$ 229,840
Common Stock [Member] | Amir Ben Yohanan Noninterest Loan [Member]
Class of Stock [Line Items]
Conversion of convertible debt, shares						5,987,500,000
Conversion of convertible debt						$ 1,197,501
Series X Preferred Stock [Member]
Class of Stock [Line Items]
Sale of stock, number of shares issued in transaction			1
Share price per share			$ 1.00
Chief Executive Officer [Member]
Class of Stock [Line Items]
Common stock, shares outstanding						56,958,396
Director [Member] | Common Stock [Member]
Class of Stock [Line Items]
Issued for service, shares						1,448,352,195
Non Employee Directors [Member] | 2023 Equity Incentive Plan [Member]
Class of Stock [Line Items]
Equity awards may be granted, maximum	300,000

---