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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| bowmo Inc (PK) | USOTC:BOMO | OTCMarkets | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.0003 | 42.86% | 0.001 | 0.001 | 0.0015 | 0.0014 | 0.0006 | 0.0008 | 49,129,786 | 21:02:14 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
or
For the transition period from __________ to __________
Commission File No.:
| (Exact name of registrant as specified in its charter) |
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
| (Address of principal executive offices) |
| (Registrant’s telephone number, including area code) |
Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant
(1) has filed all reports to be filed by Section 13 and Section 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 files such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes ☐
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 and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the 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 |
| ☒ | 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 12-b2 of the Exchange Act). Yes ☐ No
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Markets - Other |
Indicate the number of shares outstanding of each
of the issuer’s classes of common stock, as of the latest practicable date. As of November 19, 2024, there were
Table of Contents
| PART I | 1 | |
| Item 1. | Condensed Financial Statements | 1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 28 |
| Item 4. | Controls and Procedures | 28 |
| PART II | 29 | |
| Item 1. | Legal Proceedings | 29 |
| Item 1A. | Risk Factors | 29 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 29 |
| Item 3. | Defaults Upon Senior Securities | 29 |
| Item 4. | Mining Safety Disclosures | 29 |
| Item 5. | Other Information | 29 |
| Item 6. | Exhibits | 29 |
| Signatures | 30 |
i
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.
1
Bowmo, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, (unaudited) | December 31, (audited) | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Total Current Assets | ||||||||
| Loan to related party – Michael Laskshin | ||||||||
| Loan to related party – Eddie A. | ||||||||
| Prepaid expenses | ||||||||
| Total Other Assets | ||||||||
| Total Assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | ||||||||
| Accrued expenses | ||||||||
| Accrued interest | ||||||||
| Accrued officer compensation | ||||||||
| Accrued payroll taxes | ||||||||
| Loans payable, current portion | ||||||||
| Loans payable, related party | ||||||||
| Convertible Notes, net of debt discount of $304,889 and $206,570 | ||||||||
| Put premium on stock settled debt | ||||||||
| Acquisition payable | ||||||||
| Derivative liability | ||||||||
| Total Current Liabilities | ||||||||
| Loans payable, net of current portion | ||||||||
| Total Liabilities | ||||||||
| Commitments and Contingencies | ||||||||
| STOCKHOLDERS’ DEFICIT: | ||||||||
| Series A Preferred stock, | ||||||||
| Series B Preferred stock, | ||||||||
| Series C Preferred stock, | ||||||||
| Series D Preferred stock, | ||||||||
| Series E Preferred stock to be issued | ||||||||
| Series F Preferred stock, | ||||||||
| Series G Preferred stock, | ||||||||
| Series H Preferred stock, | ||||||||
| Series AA Preferred stock, | ||||||||
| Series Super Preferred stock, | ||||||||
| Common stock | ||||||||
| Common stock to be issued, | ||||||||
| Treasury stock, at cost | ( | ) | ( | ) | ||||
| Additional paid in capital * | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total Stockholders’ Deficit | ( | ) | ( | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements
| * |
2
Bowmo, Inc. and Subsidiaries
Consolidated Statements of Operations
Unaudited
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | $ | $ | $ | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Gross Profit | ||||||||||||||||
| Operating Expenses | ||||||||||||||||
| Compensation expense | ||||||||||||||||
| Consulting fees | ||||||||||||||||
| Professional fees | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Total Operating Expenses | ||||||||||||||||
| Loss from Operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other Income (Expenses) | ||||||||||||||||
| Interest expense | ( | ) | ( | ) | ||||||||||||
| Gain on new methodology for accounting for debt conversion features | ||||||||||||||||
| Initial recognition of derivative liability | ( | ) | ||||||||||||||
| Change in fair value of derivative liability | ( | ) | ( | ) | ( | ) | ||||||||||
| Total other income (expenses) | ( | ) | ( | ) | ( | ) | ||||||||||
| Loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Provision for income taxes | ||||||||||||||||
| NET (Loss) Income | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per common share – basic and diluted | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Weighted average common shares – basic and diluted * | ||||||||||||||||
| * |
The accompanying notes are an integral part of these consolidated financial statements
3
Bowmo, Inc. and Subsidiaries
Consolidated Statement of Changes in Stockholders’
Deficit
For the Three and Nine Months Ended September 30, 2024 and 2023
| Preferred Stock AA | Super Preferred Stock | Preferred Stock A | Preferred
Stock B | Preferred Stock C | Preferred Stock D | Preferred Stock E | Preferred Stock G | Preferred Stock H | Common Stock | Common
Stock to be issued | Total
Equity Equity/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Shares | Amount ($) | Additional Paid-in | Treasury Stock | Accumulated Deficit | (Deficit)
$ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2022 | | $ | | | $ | | $ | $ | | $ | $ | | | $ | $ | $ | | $ | | $ | | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relative fair value of warrants issued with convertible debt | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share issued for extinguishment of convertible debt | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued in exchange for services | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Loss for nine months ended September 30, 2023 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2023 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2023 | $ | $ | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Issuance during 2024 | $ | ( | ) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative liability adjustments for Q2 2024 | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Loss for nine months ended September 30, 2024 | ( | ) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of September 30, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements
4
Bowmo, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Unaudited
| September 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Interest expense incurred on put premium on stock settled debt | ||||||||
| Amortization of debt discount | ( | ) | ||||||
| Stock-based compensation and shares issued for services | ||||||||
| Expenses incurred on extinguishment of convertible debt and accrued interest | ||||||||
| Initial derivative expense | ||||||||
| Change in fair value of derivative liability | ||||||||
| Changes in operating assets and liabilities (net of amounts acquired): | ||||||||
| Accounts receivable | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Related party loans | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Accrued expenses | ( | ) | ( | ) | ||||
| Accrued Interest | ||||||||
| Accrued compensation | ||||||||
| Accrued payroll taxes | ||||||||
| Acquisition payable | ||||||||
| Net Cash (Used In) Provided By Operating Activities | ( | ) | ( | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Net Cash Provided by Investing Activities | ||||||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from loans payable | ||||||||
| Proceeds from equity issuances | ||||||||
| Repayment of loans | ( | ) | ( | ) | ||||
| Net Cash Provided by Financing Activities | ( | ) | ||||||
| Net Change in Cash and Cash Equivalents | ( | ) | ( | ) | ||||
| Cash And Cash Equivalents - Beginning of Year | ||||||||
| Cash And Cash Equivalents - End of Year | $ | $ | ||||||
| Supplemental Disclosure of Cash and Non-cash Transactions: | ||||||||
| Cash paid for interest | $ | $ | ||||||
| Cash paid for interest | $ | $ | ||||||
| Non-Cash Transactions | ||||||||
| Conversion of convertible debt to Common Stock | $ | $ | ||||||
| Derivative liability adjustments to Additional Paid-In Capital | $ | $ | ||||||
The accompanying notes are an integral part of these consolidated financial statements
5
Bowmo, Inc. and Subsidiaries
Notes to the Audited Consolidated Financial Statements
For the Nine Months Ended September 30, 2024 and 2023
NOTE 1 – BACKGROUND
Reverse Merger and Corporate Restructure
On May 4, 2022, Cruzani, Inc. (“Cruzani” or the “Predecessor”) entered into a merger agreement (the “Merger Agreement”) with Bowmo, Inc. (“Bowmo”) and Bowmo Merger Sub, Inc. to acquire Bowmo. (the “Acquisition”). The transactions contemplated by the Merger Agreement were consummated on May 4, 2022, and pursuant to the terms of the Merger Agreement, all outstanding shares of Bowmo were exchanged for shares of Cruzani’s common stock and Bowmo became Cruzani’s wholly owned subsidiary.
The merger was effected pursuant to the Merger Agreement. The merger is being accounted for as a reverse merger whereby Bowmo is the acquirer for accounting purposes. Bowmo is considered the acquiring company for accounting purposes as upon completion of the Merger, Bowmo’s former stockholders held a majority of the voting interest of the combined company.
Pursuant to the merger, the Company issued Series
G Preferred Stock holding the voting rights to
Accounting for Reverse Merger
The fair value of Cruzani assets acquired and liabilities assumed was based upon management’s estimates.
| Tangible Assets Acquired: | Allocation | |||
| Cash and cash equivalents | ||||
| Accounts payable | ( | ) | ||
| Accrued interest | ( | ) | ||
| Accrued officer compensation | ( | ) | ||
| Convertible Notes | ( | ) | ||
| Put premium on stock settled debt | ( | ) | ||
| Loans payable | ( | ) | ||
| Net Tangible Assets Acquired | $ | ( | ) | |
| Equity Acquired: | ||||
| Series A Preferred stock, | ( | ) | ||
| Series B Preferred stock, | ( | ) | ||
| Series C Preferred stock, | ( | ) | ||
| Series D Preferred stock, | ( | ) | ||
| Series E Preferred stock to be issued | ( | ) | ||
| Series F Preferred stock, | ||||
| Common stock | ( | ) | ||
| Treasury stock, at cost – | ||||
| Additional paid in capital | ( | ) | ||
| Consideration: | ||||
| Series G Preferred Stock holding the voting rights to | ||||
6
Organization and Business
Bowmo, Inc. (FKA Cruzani, Inc.) (the “Company”) is an AI-powered recruiting platform. The Company’s principal lines of business are direct placement of candidates with employers and Recruiting as a Service which allows the Company’s customers to outsource the management of their recruiting process to the Company. The Company offers recruiting software and services through an online AI-driven platform to connect potential candidates to employers for all businesses looking to address hiring needs. The Company was incorporated as a Delaware corporation in 2016.
NOTE 2 – GOING CONCERN
The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going-concern basis. The going concern basis assumes that assets are realized, and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations.
The Company incurred a net loss for the nine months
ended September 30, 2024, of $
The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company’s development and marketing efforts.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of the Company’s stock, stock-based compensation, fair values relating to derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
COVID-19 Impacts on Accounting Policies and Estimates
COVID-19 Impacts on Accounting Policies and Estimates In light of the currently unknown ultimate duration and severity of COVID-19, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply our significant accounting policies. As COVID-19 continues to develop, we may make changes to these estimates and judgments over time, which could result in meaningful impacts to our financial statements in future periods.
7
Principals of Consolidation
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents
The Company accounts for cash and cash equivalents
under FASB ASC 305, Cash and Cash Equivalents, and considers all highly liquid investments with an original maturity of three months
or less to be cash equivalents. At September 30, 2024 and December 31, 2023, the Company had cash and cash equivalents of $
Deferred Income Taxes and Valuation Allowance
We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns in accordance with applicable accounting guidance for accounting for income taxes, using currently enacted tax rates in effect for the year in which the differences are expected to reverse. We record a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. For the years ended December 31, 2023 and 2022, respectively, due to cumulative losses, we recorded a valuation allowance against our deferred tax asset that reduced our income tax benefit for the period to . As of December 31, 2023 and 2022, we had no liabilities related to federal or state income taxes and the carrying value of our deferred tax asset was .
The Company accounts for income taxes applying FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
Financial Instruments
The Company adopted the provisions of Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) on January 1, 2008. ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value:
| Level 1 – | Quoted prices in active markets for identical assets or liabilities. |
| Level 2 – | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. |
| Level 3 – | Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. |
8
All items required to be recorded or measured on a recurring basis are based upon level 3 inputs. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.
Upon adoption of ASC 825-10, there was no cumulative effect adjustment to beginning retained earnings and no impact on the financial statements.
The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.
Convertible Instruments
The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with various accounting standards.
ASC 480 “Distinguishing Liabilities From Equity” provides that instruments convertible predominantly at a fixed rate resulting in a fixed monetary amount due upon conversion with a variable quantity of shares (“stock settled debt”) be recorded as a liability at the fixed monetary amount.
ASC 815 “Derivatives and Hedging” generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument.”
The Company accounts for convertible instruments (when it has determined that the instrument is not a stock settled debt and the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the share transaction and the effective conversion price embedded in the preferred shares.
ASC 815-40 provides that generally if an event is not within the entity’s control and could require net cash settlement, then the contract shall be classified as an asset or a liability.
9
Convertible Notes with Fixed Rate Conversion Options
The Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability as stock settled debt in accordance with ASC 480 - “Distinguishing Liabilities from Equity” and measures the convertible note at its fixed monetary amount, which is the result of the share price discount at the time of conversion, and records the put premium, as applicable, on the note date with a charge to interest expense.
Derivative Instruments
The Company’s derivative financial instruments consist of derivatives with the sale of a convertible notes in 2024 and 2023. The accounting treatment of derivative financial instruments requires that the Company records the derivatives at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date. The carrying value assigned to the host instrument will be the difference between the previous carrying value of the host instrument and the fair value of the derivatives. There is an offsetting debt discount or premium as a result of the fair value assigned to the derivatives, as well as any debt issuance costs, which are amortized under the straight-line method over the term of the loan. Any change in fair value is recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company recorded non-operating, non-cash income.
Business Combinations
The Company accounts for its business combinations using the acquisition method of accounting. Under the acquisition method, assets acquired, liabilities assumed, and consideration transferred are recorded at the date of acquisition at their respective fair values. Definite-lived intangible assets are amortized over the expected life of the asset. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.
Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from business combinations and are expensed as incurred. The Company remeasures fair value as of each reporting date and changes resulting from events after the acquisition date, are recognized as follows: 1) if the contingent consideration is classified as equity, the contingent consideration is not re-measured and its subsequent settlement is accounted for within equity, or 2) if the contingent consideration is classified as a liability, the changes in fair value and accretion costs are recognized in earnings.
Revenue Recognition
For annual reporting periods after December 15, 2017, the Financial Accounting Standards Board (“FASB”) made effective ASU 2014-09 Revenue from Contracts with Customers, to supersede previous revenue recognition guidance under current U.S. GAAP. Revenue is now recognized in accordance with FASB ASC Topic 606, Revenue Recognition. The objective of the guidance is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The principle is to recognize revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Two options were made available for implementation of the standard: the full retrospective approach or modified retrospective approach. The guidance became effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted.
The Company generates revenue from (1) Recruiting as a Service (“Raas”), and (2) Direct Placement.
10
Recruiting as a Service:
RaaS allows the Company’s customers to outsource the management of their recruiting process allowing the Company to use the Application to assist its customers hiring needs by strategically gearing the service to reach the customer’s objectives. Revenue from RaaS consists of monthly billing to the customer for services provided.
RaaS service contracts with customers are month-to-month for a fixed price. Revenues are recognized on a gross basis when each monthly subscription service is completed.
Direct Placement
The Company generates direct placement revenue by earning one-time fees for each time an employer hires one of the candidates that the Company refers. The Company sources qualified candidate referrals for the employers’ available jobs through the use of the Company’s Application. Upon the employer hiring one or more of the Company’s candidate referrals, the Company earns the direct placement fee, which consists of an amount agreed upon between the Company and its customers. The fee is a percentage of the referred candidates’ first year’s base salary.
Direct placement revenues are recognized on a gross basis on the date of hire of the candidate placed with an employer, as it is more than probable that a significant revenue reversal will not occur. This fee is only charged to the employer. Any payments received prior to the hire date are recorded as deferred revenue on the consolidated balance sheets. Payments for recruitment services are typically due within 30 days of completion of services.
Direct placement revenue is subject to a
Revenue Segementation
September 30, 2024 | September 30, 2023 | |||||||
| Direct placement | $ | $ | ||||||
| Recruiting as a Service | ||||||||
| Total revenues | $ | $ | ||||||
Cost of revenues
Cost of revenue consist of employee costs, third party staffing costs, hosting service fees, and other fees, outsourced recruiter fees and commissions.
Concentrations of credit risk
Financial instruments which potentially subject the Company to credit risks consist primarily of cash and cash equivalents, and accounts receivable. Cash and cash equivalents are held in United States financial institutions. At times such amounts may exceed federally insured limits.
11
Stock-based compensation
We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment.
Recently Issued Accounting Pronouncements
We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.
Change in account principle
Commencing with the second quarter of 2022, the Company prospectively changed its accounting treatment for securities that contain predominantly, fixed rate conversion features by recording the derivative feature as a put premium on stock settled debt. See Note 7 for further discussion. The company believes this change in accounting principle is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features.
NOTE 4 – BUSINESS COMBINATIONS
Interview Mastery Asset Purchase
On December 16, 2022, the Company entered into
an Asset Purchase Agreement (the “APA”) with a related party, Interview Mastery Corporation (“Interview Mastery”),
a Delaware corporation, by and through Michael R. Neece (“Neece”), the Company’s Chief Product Officer, and Caseridus,
Inc. Under the terms of the APA, the Company will pay the purchase price through the issuance of
The acquisition was accounted for as a business combination in accordance with the acquisition method under the guidance in ASC 805-10 and 805-20. This business combination was accounted for as a related party acquisition, as Neece is the chief product officer of the Company.
Accordingly, the total purchase consideration was allocated to net assets acquired based on their respective historical costs. The assets acquired, and liabilities assumed, if any, in a business purchase combination be recognized at their historical costs as of the acquisition date.
12
| Description | Fair Value | Weighted Average Useful Life (Years) | |||||
| Cash | $ | ||||||
| Prepaid expenses | |||||||
| Loss on acquisition – related party | |||||||
| $ | |||||||
Total acquisition costs incurred were $
Pro Forma Information
The results of operations of Interview Mastery
will be included in the Company’s consolidated financial statements as of the date of acquisition through the current period end.
| December 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Revenue | $ | $ | ||||||
| Net Loss | $ | ( | ) | $ | ( | ) | ||
| Earnings (Loss) per common share, basic and diluted | $ | $ | ( | ) | ||||
NOTE 5 – LOANS PAYABLE
As a result of the reverse merger that occurred on May 4, 2022, as discussed in Note 1, the Company assumed Loans 1 through 5 on the table below from Cruzani.
| Rate | September 30, 2024 | December 31, 2023 | ||||||||||
| Loan 1 | % | $ | $ | |||||||||
| Loan 2 | % | |||||||||||
| Loan 3 | % | |||||||||||
| Loan 4 | % | |||||||||||
| Loan 5 | ||||||||||||
| Total | $ | $ | ||||||||||
13
| For the year ending | Amount | |||
| December 31, 2024 | ||||
| December 31, 2025 | ||||
| December 31, 2026 | ||||
| December 31, 2027 | ||||
| Thereafter | ||||
| Total payments | $ | |||
Loans 1 through 5 are past due as of the issuance of these financial statements.
Loan 1) On May 30, 2013, and August 12, 2013,
Cruzani received advances from a director for $
Loan 2) On February 27, 2014, and March 19, 2015,
Cruzani received advances from a director of $
Loan 3) On September 18, 2014, May 29, 2015, July
3, 2015, December 2, 2015, and January 4, 2016, Cruzani entered into unsecured, non-guaranteed, loan agreements pursuant to which the
Company received proceeds of $
Loan 4) On December 4, 2014, January 29, 2015,
August 12, 2015, August 21, 2015, September 1, 2015, September 15, 2015, November 13, 2015, and December 23, 2015, Cruzani issued unsecured
notes payable of $
Loan 5) Entities negatively impacted by the coronavirus
(“COVID-19”) pandemic were eligible to apply for loans sponsored by the United States Small Business Administration (“SBA”)
Economic Injury Disaster Loan (“EIDL Loan”) program. On July 15, 2020, the Company received cash proceeds of $
In February 2022, the Company agreed to the first
and second modifications of the EIDL Loan. The EIDL was modified to include additional borrowings of $
14
NOTE 6 – CONVERTIBLE NOTES
| September 30, | December 31, | Put Premium On Stock | ||||||||||
| Creditor | 2024 | 2023 | Settled Debt | |||||||||
| Frondeur | $ | $ | $ | |||||||||
| Kings Wharf | ||||||||||||
| 1800 Diagonal Lending | ||||||||||||
| Trillium | ||||||||||||
| Matterhorn | ||||||||||||
| Travel Data Solutions | ||||||||||||
| Travere Opportunity Fund | ||||||||||||
| Third Party | ||||||||||||
| Total | ||||||||||||
| Less: Debt discount | ( | ) | ( | ) | ||||||||
| Total Convertible notes payable | $ | $ | ||||||||||
Frondeur
Between June 1, 2022 and December 1, 2022, the
Company entered into several convertible notes with Frondeur Partners, LLC bearing interest at
During the three months ended March 31, 2024,
the Company issued three additional convertible notes to Fondeur. The aggregate principal amount of these notes is $
Kings Wharf
On October 19, 2022, the Company entered into
a convertible note with King Wharf Opportunities Fund bearing interest at
15
1800 Diagonal Lending
November 10, 2023, the Company entered into a
convertible note with 1800 Diagonal Lending bearing interest at
December 12, 2023, the Company entered into a
convertible note with 1800 Diagonal Lending bearing interest at
During the six months ended June 30, 2024, the
Company entered into a convertible note with 1800 Diagonal Lending bearing interest at
Trillium
Between May 25, 2021 and July 6, 2021, Cruzani
entered into two convertible notes with Trillium Partners, LP bearing interest at
Between June 1, 2022 and December 6, 2022, the
Company entered into several convertible notes with Trillium Partners, LP bearing interest between
On October 19, 2022, the Company entered into
a convertible note with Trillium Partners, LP bearing interest at
During the six months ended June 30, 2024, the
Company entered into four additional convertible notes with Trillium Partners, LP bearing interest of
16
Matterhorn
On August 15, 2023, the Company entered into a
convertible note with Matterhorn Partners LLC bearing interest at
On June 20, 2024 (not funded until July 1, 2024),
the Company entered into a convertible note with Matterhorn Partners LLC bearing interest at
Travel Data Solutions
On November 18, 2017, Cruzani entered into a convertible
promissory note for $
Travere Opportunity Fund
On June 20, 2024 (not funded until July 3, 2024),
the Company entered into a convertible note with Matterhorn Partners LLC bearing interest at
Third Party
As a result of the reverse merger that occurred
on May 4, 2022, as discussed in Note 1, the Company assumed convertible notes from Cruzani, most of which have been converted into common
stock in the Company. The last remaining convertible debt outstanding during the nine months ended September 30, 2024, and the year ended
December 31, 2023, was a note that was entered into on July 7, 2020. the Company issued a $
17
NOTE 7 – PUT PREMIUM ON STOCK SETTLED DEBT
At the end of the quarter ended June 30, 2022, the Company decided to adopt ASC 480 - “Distinguishing Liabilities from Equity.” When they enter into convertible notes, some of which contain, predominantly, fixed rate conversion features (See Note 7 for conversion terms), whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a put premium on the consolidated balance sheets, as applicable, on the note date with a charge to interest expense.
The put premiums are expensed on issuance of the debt with the liability released to additional paid in capital on conversion of the principal.
In previous years, the Company had recorded such items as derivative liabilities (See Note 8). Thus, there was a charge to put premium on stock settled debt and a decrease to derivative liability for all convertible debt determined to have fixed rate conversion options. On a going-forward basis, all put premiums will be recorded as a liability as
put premium on stock settled debt on the consolidated balance sheets with a charge to interest expense.
The company believes this change in accounting
principles is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features.
This accounting change resulted in a gain on new methodology for accounting for debt conversion features of $
NOTE 8 – DERIVATIVE LIABILITIES
Commencing with the second quarter of 2022, the Company changed its accounting treatment for securities that contain predominantly, fixed rate conversion features by recording the derivative feature as a put premium on stock settled debt.
The embedded conversion options of certain of the Company’s convertible debentures summarized in Note 6 contain variable conversion features that qualify for embedded derivative classification under ASC 815-15 Embedded Derivatives. The fair value of these liabilities is re-measured at the end of every reporting period and the change in fair value is reported in the statement of operations as a gain or loss on derivative financial instruments.
| Total | ||||
| Balance as of December 31, 2021 | $ | |||
| Change Due to Issuances | ||||
| Transfer to put premium | ( | ) | ||
| Change in fair value | ( | ) | ||
| Balance as of December 31, 2022 | ||||
| Change Due to Issuances | ( | ) | ||
| Transfer to put premium | ||||
| Change in fair value | ||||
| Balance as of December 31, 2023 | ||||
| Change in fair value | ||||
| Balance as of September 30, 2024 | $ | |||
The Company uses Level 3 inputs for its valuation methodology for its conversion option liabilities as their fair values were determined by using Black-Scholes options pricing model. The option-pricing model requires a number of assumptions, of which the most significant are share price, expected volatility and the expected option term (the time from the issuance date until the maturity date). The Company has historically not paid dividends and has no foreseeable plans to issue dividends. The risk-free interest rate is based on the yield from governmental zero-coupon bonds with an equivalent term. As, required, these are classified based on the lowest level of input that is significant to the fair value measurement.
18
| September 30, 2024 | December 31, 2023 | |||
| Stock price | $ | $ | ||
| Exercise price | $ | $ | ||
| Contractual term (in years) | ||||
| Volatility (annual) | ||||
| Risk-free rate |
NOTE 9 – RELATED PARTY TRANSACTIONS
For the nine months ended September 30, 2024,
and the year ended December 31, 2023, expenses of $
Per the agreement with Michael Neece, a salary
of $
On December 16, 2022, Bowmo, Inc. (the “Company”) entered into an Asset Purchase Agreement (the “APA”) with a related party, Interview Mastery Corporation (“Interview Mastery”), a Delaware corporation, by and through Michael R. Neece (“Neece”) and Caseridus, Inc. Michael Neece, the seller of Interview Mastery, is the chief product officer of the Company.
Through September 30, 2024, the Company owed Eddie
Aizman and Michael Lakshin compensation based on their employment agreements; the agreements provide for annual salaries of $
On July 8, 2019, the Company executed an employment
agreement with Conrad Huss. The agreement provides for a salary of $
NOTE 10 – COMMON STOCK
The Company has been authorized to issue
During the year ended December 31, 2022, the Company
issued
During the year ended December 31, 2023, the Company
issued
During the three and nine months ended September
30, 2024, the Company issued
As of September 30, 2024, the Company had
Acquisition of Interview Mastery
As discussed in Note 4, on December 16, 2022,
the Company acquired Interview Mastery at a purchase price of
19
Michael Neece employment agreement
On December 16, 2022, the Company entered into
an employment agreement with Michael Neece, Chief Product Officer. Under the agreement,
NOTE 11 – WARRANTS
In connection with the issuance of convertible
notes to Trillium and Fondeur, the Company issued
These warrants have an exercise price per share
between $
Shares to purchase | Weighted Average Price | Weighted Average | ||||||||||
| Outstanding, December 31, 2023 | $ | $ | ||||||||||
| Issued | ||||||||||||
| Exercised | ||||||||||||
| Forfeited | ||||||||||||
| Expired | ||||||||||||
| Outstanding, September 30, 2024 | $ | $ | ||||||||||
| Exercisable, September 30, 2024 | $ | $ | ||||||||||
The Company uses Level 3 inputs for its valuation
methodology for its conversion option liabilities as their fair values were determined by using the Binomial option pricing model based
on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on the Over the Counter
Bulletin Board), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation
would result in a significant change in the fair value measurement. As, required, these are classified based on the lowest level of input
that is significant to the fair value measurement.
| Range of Exercise Prices | Number Outstanding September 30, | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | |||||||||
| $ | $ | |||||||||||
20
NOTE 12 – PREFERRED STOCK
Series AA and Super Convertible Preferred
Stock, has a par value of $
As of September 30, 2024, and December 31, 2023,
there are
Series A Convertible Preferred Stock,
has a par value of $
As of September 30, 2024, and December 31, 2023,
there are
Series B Convertible Preferred Stock,
has a par value of $
As of September 30, 2024, and December 31, 2023,
there are
Series C Convertible Preferred Stock,
has a par value of $
As of September 30, 2024, and December 31, 2023,
there are
Series D Convertible Preferred Stock,
has a par value of $
As of September 30, 2024, and December 31, 2023,
there are
Series E Convertible Preferred Stock, has
a par value of $
Series F Convertible Preferred Stock,
has a par value of $
As of September 30, 2024, and December 31, 2023,
there are
21
Series G Convertible Preferred Stock,
has a par value of $
As of September 30, 2024 and December 31, 2023,
there are
During the year ended December 31, 2022, as consideration
for the reverse merger, the Company issued
On November 18, 2021, pursuant to the Founders
Agreement, Michael Lakshin, President, and Edward Aizman, CEO, were issued
NOTE 13 – COMMITMENTS AND CONTINGENCIES
Contingency arising from indebtedness owed to Oasis Capital, LLC
A contingency arises when there is a situation for which the outcome is uncertain, and which should be resolved in the future, Generally Accepted Accounting Principles require recognition of only those losses that are probable and for which a loss amount can be reasonably estimated.
The following details the nature of the contingency
with Oasis Capital LLC (“Oasis”). In the normal course of its business, Oasis files notices to convert (“conversion
notices”) a portion of its outstanding ownership of the Company’s indebtedness into shares of common stock. As a customary
procedure for the annual audit for the period ended December 31, 2020, of Cruzani, Cruzani’s auditors confirmed its outstanding
balance of the indebtedness and related accrued interest. During the year ended December 31, 2021, Oasis submitted conversions which stated
that the outstanding indebtedness was far greater than that which was on the Company’s books. The total amount of the increased
indebtedness was approximately $
Since the Company believes that the loss is not probable and no litigation has been pursued at this time, there has been no recognition of this liability on the books and records of the Company.
Legal
During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. A contingency arises when there is a situation for which the outcome is uncertain, and which should be resolved in the future, Generally Accepted Accounting Principles require recognition of only those losses that are probable and for which a loss amount can be reasonably estimated.
On February 13, 2017, Baum Glass & Jayne PLLC
(“Plaintiff”) obtained a default judgment against the Company in the amount of $
22
NOTE 14 – INCOME TAX
There was income tax expense reflected in the results of operations for the years ended December 31, 2023 and 2022 because the Company incurred a net loss for tax purposes.
As of December 31, 2023 and 2022, the Company
had federal and state net operating loss carry forwards of $
| December 31, 2023 | December 31, 2022 | |||||||
| Deferred tax assets / (liabilities) | ||||||||
| Net operating loss carry forward | $ | $ | ||||||
| Stock-based compensation | ||||||||
| Accrued expenses | ||||||||
| Net deferred tax assets | ||||||||
| Valuation allowance | ( | ) | ( | ) | ||||
| Net deferred tax assets, net of valuation allowance | $ | $ | ||||||
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability.
| December 31, 2023 | December 31, 2022 | |||||||
| Statutory federal income tax rate | % | % | ||||||
| State tax, net of federal benefit | % | % | ||||||
| Permanent differences | % | % | ||||||
| Valuation allowance | ( | )% | ( | )% | ||||
| Effective rate | % | % | ||||||
Internal Revenue Code Section 382 limits the ability
to utilize net operating losses if a
On March 27, 2020, the US government signed the
CARES Act into law, a $
The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of December 31, 2023 and 2022 the Company had no unrecognized tax benefits. There were no changes in the Company’s unrecognized tax benefits during the years ended December 31, 2023 and 2022. The Company did not recognize any interest or penalties during fiscal 2023 or 2022 related to unrecognized tax benefits.
For the years ended December 31, 2023 and 2022, the net increase in
valuation allowance was approximately $
Tax years 2018-2021 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which the Company is subject.
NOTE 15 – SUBSEQUENT EVENTS
In accordance with ASC 855-10, the company has analyzed its operations subsequent to September 30, 2024, through the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.
23
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The statements contained in the following MD&A and elsewhere throughout this Quarterly Report on Form 10-Q, including any documents incorporated by reference, that are not historical facts, including statements about our beliefs and expectations, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements preceded by, followed by or that include the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “intend” and similar words or expressions. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements.
These forward-looking statements, which reflect our management’s beliefs, objectives, and expectations as of the date hereof, are based on the best judgement of our management. All forward-looking statements speak only as of the date on which they are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to factors that could cause actual results to differ materially from those anticipated in such statements, including, without limitation, the following: economic, social and political conditions, global economic downturns resulting from extraordinary events and other securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; failure to maintain relationships with employees, customers, business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with risks and uncertainties detailed in our filings with the SEC, including our most recent filings on Forms 10-K and 10-Q.
We caution that the foregoing list of factors is not exclusive, and new factors may emerge, or changes to the foregoing factors may occur, that could impact our business. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.
Certain information contained in this discussion and elsewhere in this report may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbor created by that act. The safe harbor created by the Private Securities Litigation Reform Act will not apply to certain “forward looking statements” because we issued “penny stock” (as defined in Section 3(a)(51) of the Securities Exchange Act of 1934 and Rule 3(a)(51-1) under the Exchange Act) during the three year period preceding the date(s) on which those forward looking statements were first made, except to the extent otherwise specifically provided by rule, regulation or order of the Securities and Exchange Commission. We caution readers that certain important factors may affect our actual results and could cause such results to differ materially from any forward-looking statements which may be deemed to have been made in this Report or which are otherwise made by or on our behalf. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “explore,” “consider,” “anticipate,” “intend,” “could,” “estimate,” “plan,” or “propose” or the negative variations of those words or comparable terminology are intended to identify forward-looking statements. Factors that may affect our results include, but are not limited to, the risks and uncertainties associated with:
| ● | Our ability to raise capital necessary to sustain our anticipated operations and implement our business plan, |
| ● | Our ability to implement our business plan, |
| ● | Our ability to generate sufficient cash to survive, |
| ● | The degree and nature of our competition, |
| ● | The lack of diversification of our business plan, |
| ● | The general volatility of the capital markets and the establishment of a market for our shares, and |
| ● | Disruption in the economic and financial conditions primarily from the impact of past terrorist attacks in the United States, threats of future attacks, police and military activities overseas and other disruptive worldwide political and economic events and environmental weather conditions. |
We are also subject to other risks detailed from time to time in our other filings with SEC and elsewhere in this Annual Report. Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
24
Recent Event
On March 22, 2024, we entered into a Plan and Agreement of Merger (the “Merger Agreement”) with OWNverse, LLC, a Delaware limited liability company (“OWNverse”), pursuant to which OWNverse would become a wholly-owned subsidiary of our company. Pursuant to the Merger Agreement, our company would deliver an aggregate of 2,000 shares of to-be-designated Series I Preferred Stock of the Company, an aggregate of $2,000,000 in principal amount promissory notes that are to be due and payable two years from their issuance dates and promissory notes with an aggregate of up to $270,000 that are to be due and payable six months from their issuance dates. The consummation of the Merger Agreement has not been completed, due to our company’s lack of capital. There is no assurance that we will be able to obtain sufficient capital to do so. However, the owners of OWNverse remain, as of the date of this Quarterly Report, committed to completing the Merger.
2022 Acquisition – Interview Mastery
Effective December 16, 2022, pursuant to an Asset Purchase Agreement (the “APA”) with Interview Mastery (“Interview Mastery”), by and through Michael R. Neece (“Neece”) and Caseridus, Inc. Under the terms of the APA, the Company is to pay the purchase price through the issuance of 22,000,000 shares of the Company’s common stock in two tranches: (i) 11,000,000 shares of Company common stock to the stockholders of Interview Mastery that vest immediately for all of the business assets of Interview Mastery, valued at $200,000 based on the acquisition date share price; and (ii) 11,000,000 shares of Company common stock issued in consideration of Neece’s employment with the Company which shall vest over a four (4) year period during which 25% of the shares will vest on the first-year anniversary of Neece’s employment, followed by vesting in increments of 6.25% of the shares per quarter (3-month period) thereafter until the full amount is vested and all of which shall be contingent upon Neece’s continual employment with the Company. As of the date of this Annual Report, none of the shares issuable in connection with the APA has been issued, and as such, has been recorded as a liability in accrued expenses on the consolidated balance sheets. In connection with the APA, the Company is to create a new board seat and offer such seat to Neece who will be formally invited to join the Company’s Board of Directors. As of the date of this Annual Report, none of these actions has been taken by the Company.
This acquisition was accounted for as a business combination in accordance with the acquisition method under the guidance in ASC 805-10 and 805-20. This business combination was accounted for as a related party acquisition, as Neece is the chief product officer of the Company Accordingly, the total purchase consideration was allocated to net acquired based on their respective historical costs. The assets acquired, and liabilities assumed, if any, in a business purchase combination be recognized at their historical costs as of the acquisition date.
The final allocation of the purchase price in connection with the Interview Mastery acquisition was calculated as follows:
| Description | Fair Value | Weighted Average Useful Life (Years) | ||||||
| Cash | $ | 1,633 | ||||||
| Prepaid expenses | 997 | |||||||
| Loss on acquisition – related party | 197,370 | |||||||
No acquisition costs were incurred. The approximate revenue and net loss for the acquired business as a standalone entity per ASC 805 from January 1, 2021, to December 31, 2021, was $14,692 and $21,862, respectively, and, from January 1, 2022, to December 16, 2022, $13,059 and $15,279, respectively.
Results of Operations
The following discussion and analysis of the results of operations and financial condition for the nine months ended September 30, 2024 and 2023, should be read in conjunction with our consolidated financial statements and the notes to those consolidated financial statements that are included elsewhere in this Quarterly Report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors. See “Forward-Looking Statements.”
25
Nine Months Ended September 30, 2024, Compared to the Nine Months Ended September 30, 2023.
Revenue. We derived no revenues from operations for the nine months ended September 30, 2024, compared to revenues for the nine months ended September 30, 2023, of $66,476. Our lack of revenues during current period is due to our lack of operating capital. We are unable to predict if and when we will obtain the capital needed to begin to generate revenues again.
Cost of Revenue. Cost of revenues for the nine months ended September 30, 2024 and 2023, was $0 and $0, respectively.
Compensation Expense. Compensation expense for the nine months ended September 30, 2024, was $375,000, compared to the nine months ended September 30, 2023, when we reported compensation expense of $431,421. In both periods, compensation expense consisted entirely of compensation paid and accrued to officers.
Consulting Expense. Consulting expense for the nine months ended September 30, 2024, was $0, compared to the nine months ended September 30, 2023, when consulting expenses was $90,000.
General and Administrative Expenses. General and administrative expenses for the nine months ended September 30, 2024, was $93,143, compared to $174,584 for the nine months ended September 30, 2023. The decrease in the current period is attributable to our lack of operating capital.
Professional fees. Professional fees for the nine months ended September 30, 2024, were $114,750, compared to $166,884 for the nine months ended September 30, 2023. The decrease in professional fees is primarily due to our lower level of operations required by our lack of operating capital.
Other Income (Expense). For the nine months ended September 30, 2024, total other expense was $272,834, comprised exclusively of change in fair value of derivative liability. For the nine months ended September 30, 2023, total other expense was $849,112, comprised of change in the value of derivative liabilities of $149,909, the initial recognition of a derivative liability of $32,429, and interest expense of $666,774.
Net Income (Loss). The Company reported a net loss of $855,727 for the nine months ended September 30, 2024, compared to net loss of $1,645,525 for the nine months ended September 30, 2023.
Liquidity and Capital Resources
For the nine months ended September 30, 2024, we used $369,118 of cash in operating activities, compared to the nine months ended September 30, 2023, when we used $134,957 of cash in operating activities.
For the nine months ended September 30, 2024 and 2023, investing activities did not use or provide cash.
For the nine months ended September 30, 2024, financing activities provide $368,155 of cash, compared to the nine months ended September 30, 2023, when financing activities used $28,278 of cash.
The Company currently owes approximately $270,000 on non-convertible loans payable, all of which are in default, and approximately $400,000 for outstanding convertible notes, net of discounts, all of which are in default.
In addition, entities negatively impacted by the COVID-19 pandemic were eligible to apply for loans sponsored by the United States Small Business Administration (SBA) Economic Injury Disaster Loan (“EIDL Loan”) program. On July 15, 2020, the Company received cash proceeds of $40,400 under this program. In addition, in July 2020, the Company received $6,000 from the SBA as a COVID-19 Economic Injury Disaster Loan Advance (the “EIDL Advance”). The proceeds can be used to fund payroll, healthcare benefits, rent and other qualifying expenses, and the loan is not subject to a loan forgiveness provision. The standard EIDL Loan repayment terms include interest accruing at 3.75% per annum effective July 15, 2020; the payment schedule contains a one-year deferral period on initial principal and interest payments; the loan term is thirty years; and there is no prepayment penalty or fees. The Company pledged all assets of the Company as collateral for the loan. As of December 31, 2021, the amounts outstanding totaled $40,400, and was classified as part of notes payable on the consolidated balance sheet. Additionally, the Company entered into a security agreement with the SBA in which this promissory note is collateralized by all tangible and intangible assets of the Company. In addition, the Company’s CEO, Edward Aizman, provided his personal guaranty of the EIDL Loan and pledged certain of his personal assets in conjunction with his guaranty. On January 6, 2021, the SBA announced a one-year extension of the deferral period for loans that commenced in 2020 delaying payments of principal and interest to July 2022. Pursuant to an SBA Procedural Notice in December 2020, the EIDL Advance was forgiven. The Company has recognized the entire EIDL Advance amount of $6,000 as grant income, which is included in other income (expense) in the consolidated statement of operations for the year ended December 31, 2021.
26
In February 2022, the Company agreed to the first and second modifications of the EIDL Loan. The EIDL was modified to include additional borrowings of $269,200, which were received in full in February 2022. Periodic monthly payments have increased to $1,556 in the first modification and reduced to $1,506 in the second modification. Additionally, the Company entered into an amended security agreement with the SBA in which this promissory note, and the modifications, is collateralized by all tangible and intangible assets of the Company. The balance of the EIDL loan balance at December 31, 2023 is $309,500, respectively. The Company is in default under the EIDL Loan and the EIDL Loan has been referred by the SBA to the U.S. Treasury Offset Program. The Company is currently in the process of addressing the charged-off status of the EIDL Loan with the SBA and simultaneously submitting an application to the SBA’s Hardship Accommodation Program (HAP), whereby the Company hopes to receive some relief while arranging for, and keeping current, reduced payments thereon. There is no assurance that the Company will be able to secure any such relief.
Going Concern
The accompanying unaudited interim consolidated condensed financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company on a going-concern basis. The going concern basis assumes that assets are realized, and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations and has an accumulated deficit of $(13,848,604). The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company’s development and marketing efforts.
Critical Accounting Estimates and Policies
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 1 to the Financial Statements describes the significant accounting policies and methods used in the preparation of the Financial Statements. Estimates are used for, but not limited to, contingencies and taxes. Actual results could differ materially from those estimates. The following critical accounting policies are impacted significantly by judgments, assumptions, and estimates used in the preparation of the Financial Statements.
We are subject to various loss contingencies arising in the ordinary course of business. We consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss in determining loss contingencies. An estimated loss contingency is accrued when management concludes that it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. We regularly evaluate current information available to us to determine whether such accruals should be adjusted.
We recognize deferred tax assets (future tax benefits) and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities represent the expected future tax return consequences of those differences, which are expected to be either deductible or taxable when the assets and liabilities are recovered or settled. Future tax benefits have been fully offset by a 100% valuation allowance as management is unable to determine that it is more likely than not that this deferred tax asset will be realized.
Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Off Balance Sheet Arrangements
We have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.
27
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable to smaller reporting companies.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure. Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, they concluded that our disclosure controls and procedures were not effective for the quarterly period ended September 30, 2024.
The following aspects of the Company were noted as potential material weaknesses:
| 1. | We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the period ended September 30, 2024. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. |
| 2. | We do not have sufficient resources in our accounting function, which restricts the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner. As a result, as of the date of filing, we have not completed our ASC 606 implementation process and, thus, cannot disclose the quantitative impact of adoption on our financial statements. In addition, due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. |
| 3. | We have inadequate controls to ensure that information necessary to properly record transactions is adequately communicated on a timely basis from non-financial personnel to those responsible for financial reporting. Management evaluated the impact of the lack of timely communication between non–financial personnel and financial personnel on our assessment of our reporting controls and procedures and has concluded that the control deficiency represented a material weakness. |
| 4. | Certain control procedures were unable to be verified due to performance not being sufficiently documented. As an example, some procedures requiring review of certain reports could not be verified due to there being no written documentation of such review. Management evaluated the impact of its failure to maintain proper documentation of the review process on its assessment of its reporting controls and procedures and has concluded deficiencies represented a material weakness. |
In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.
Changes in Internal Controls
Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that no change occurred in the Company’s internal controls over financial reporting during the quarter ended September 30, 2024, that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.
28
PART II – OTHER INFORMATION
Item. 1. Legal Proceedings.
From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.
As of the date of this filing, there are no material pending legal or governmental proceedings relating to our Company or properties to which we are a party, and, to our knowledge, there are no material proceedings to which any of our directors, executive officers, or affiliates are a party adverse to us or which have a material interest adverse to us.
Item 1A. Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, are not required to provide the information under this Item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
We issued no securities during the three months ended September 30, 2024, not previously reported.
Item 3. Defaults Upon Senior Securities.
None
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Item 6. Exhibits
| Exhibit | Description | |
| 31.1 | Section 302 Certification of Principal Executive Officer and Financial Officer* | |
| 32.1 | Section 906 Certification of Principal Executive Officer and Financial Officer* | |
| 101.INS | Inline XBRL Instance Document. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| * | filed herewith |
29
SIGNATURES
In accordance with 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 hereunto duly authorized.
| BOWMO, INC. | ||
| Date: November 19, 2024 | By: | /s/ Michael Lakshin |
| Name: | Michael Lakshin | |
| Title: | President and Chairman of the Board | |
| (Principal Executive Officer) | ||
| (Principal Financial and Accounting Officer) | ||
30
Exhibit 31.1
CERTIFICATION BY THE CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Michael Lakshin, certify that:
| 1. | I have reviewed Bowmo, Inc. Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024; |
| 2. | Based on my knowledge, this quarterly 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 quarterly report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report; |
| 4. | The registrant’s other certifying officer 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 by 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 quarterly 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; |
| 5. | The registrant’s other certifying officer 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 registrant’s board of directors (or persons performing the equivalent function): |
| a. | all significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting. |
| Date: | November 19, 2024 |
| /s/ Michael Lakshin | ||
| Name: | Michael Lakshin | |
| Title: |
President and Chairman of the Board (Principal Executive Officer) (Principal Accounting and Financial Officer) | |
Exhibit 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF SARBANES-OXLEY ACT OF 2002
The certification set forth below is being submitted in connection with this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
Each of the undersigned certifies that, to his knowledge:
| 1. | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and |
| 2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Bowmo, Inc. |
| Date: | November 19, 2024 |
| /s/ Michael Lakshin | ||
| Name: | Michael Lakshin | |
| Title: |
President and Chairman of the Board (Principal Executive Officer) (Principal Accounting and Financial Officer) | |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Sep. 30, 2024 |
Dec. 31, 2023 |
||
|---|---|---|---|---|
| Common stock, shares authorized | [1] | 40,000,000,000 | 40,000,000,000 | |
| Common stock, par value (in Dollars per share) | [1] | $ 0.00001 | $ 0.00001 | |
| Common stock, shares issued | [1] | 136,458,010 | 53,520,830 | |
| Common stock, shares outstanding | [1] | 136,458,010 | 53,520,830 | |
| Treasury stock, shares | 2,917 | 2,917 | ||
| Series A Preferred Stock | ||||
| Preferred stock, shares authorized | 3,500,000 | 3,500,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | ||
| Preferred stock, shares issued | 3,381,520 | 0 | ||
| Preferred stock, shares outstanding | 3,381,520 | 0 | ||
| Series B Preferred Stock | ||||
| Preferred stock, shares authorized | 10,000 | 10,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | ||
| Preferred stock, shares issued | 5,000 | 0 | ||
| Preferred stock, shares outstanding | 5,000 | 0 | ||
| Series C Preferred Stock | ||||
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 | ||
| Preferred stock, shares issued | 5,000,000 | 0 | ||
| Preferred stock, shares outstanding | 5,000,000 | 0 | ||
| Series D Preferred Stock | ||||
| Preferred stock, shares authorized | 125,000 | 125,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 125,000 | 0 | ||
| Preferred stock, shares outstanding | 125,000 | 0 | ||
| Series F Preferred Stock | ||||
| Preferred stock, shares authorized | 101 | 101 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 101 | 0 | ||
| Preferred stock, shares outstanding | 101 | 0 | ||
| Series G Preferred Stock | ||||
| Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 1,000,000 | 0 | ||
| Preferred stock, shares outstanding | 1,000,000 | 0 | ||
| Series H Preferred Stock | ||||
| Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 1,000,000 | 10 | ||
| Preferred stock, shares outstanding | 1,000,000 | 10 | ||
| Series AA Preferred Stock | ||||
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 0 | 652,259 | ||
| Preferred stock, shares outstanding | 0 | 652,259 | ||
| Series Super Preferred Stock | ||||
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 0 | 500 | ||
| Preferred stock, shares outstanding | 0 | 500 | ||
| Common Stock | ||||
| Common stock, shares issued | 2,550,000 | 2,550,000 | ||
| ||||
Consolidated Statements of Operations - USD ($) |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|||
| Income Statement [Abstract] | ||||||
| Revenue | $ 62,000 | $ 66,476 | ||||
| Cost of revenue | ||||||
| Gross Profit | 62,000 | 66,476 | ||||
| Operating Expenses | ||||||
| Compensation expense | 125,000 | 209,303 | 375,000 | 431,421 | ||
| Consulting fees | 30,000 | 90,000 | ||||
| Professional fees | 49,750 | 3,415 | 114,750 | 166,884 | ||
| General and administrative | 31,537 | 67,163 | 93,143 | 174,584 | ||
| Total Operating Expenses | 206,287 | 309,881 | 582,893 | 862,889 | ||
| Loss from Operations | (206,287) | (247,881) | (582,893) | (796,413) | ||
| Other Income (Expenses) | ||||||
| Interest expense | (169,369) | (666,774) | ||||
| Gain on new methodology for accounting for debt conversion features | ||||||
| Initial recognition of derivative liability | (32,429) | |||||
| Change in fair value of derivative liability | 41,646 | (580,189) | (272,834) | (149,909) | ||
| Total other income (expenses) | 41,646 | (749,558) | (272,834) | (849,112) | ||
| Loss before income taxes | (164,641) | (997,439) | (855,727) | (1,645,525) | ||
| Provision for income taxes | ||||||
| NET (Loss) Income | $ (164,641) | $ (997,439) | $ (855,727) | $ (1,645,525) | ||
| Net loss per common share – basic (in Dollars per share) | $ 0 | $ (0.03) | $ (0.01) | $ (0.05) | ||
| Net loss per common share – diluted (in Dollars per share) | $ 0 | $ (0.03) | $ (0.01) | $ (0.05) | ||
| Weighted average common shares – basic (in Shares) | [1] | 33,300,997 | 31,260,512 | |||
| Weighted average common shares diluted (in Shares) | [1] | 33,300,997 | 31,260,512 | |||
| ||||||
Consolidated Statement of Changes in Stockholders’ Deficit - USD ($) |
Preferred Stock
Stock AA
|
Preferred Stock
Super
|
Preferred Stock
Series A
|
Preferred Stock
Series B
|
Preferred Stock
Series C
|
Preferred Stock
Series D
|
Preferred Stock
Series E
|
Preferred Stock
Series G
|
Preferred Stock
Series H
|
Common Stock |
Common Stock to be issued |
Additional Paid-in Capital |
Treasury Stock |
Accumulated Deficit |
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at Dec. 31, 2022 | $ 0 | $ 0 | $ 33,815 | $ 50 | $ 50,000 | $ 12 | $ 166,331 | $ 1,000 | $ 0 | $ 270,497 | $ 26 | $ 3,599,032 | $ (773,500) | $ (9,243,925) | $ (5,896,662) |
| Balance (in Shares) at Dec. 31, 2022 | 0 | 0 | 3,381,520 | 5,000 | 5,000,000 | 125,000 | 0 | 1,000,000 | 0 | 27,049,736,362 | 0 | ||||
| Stock-based compensation | 85,885 | 85,885 | |||||||||||||
| Derivative liability adjustments for Q2 2024 | 24,989 | 24,989 | |||||||||||||
| Share issued for extinguishment of convertible debt | $ 63,112 | 518,579 | 581,691 | ||||||||||||
| Share issued for extinguishment of convertible debt (in Shares) | 5,400,639,127 | ||||||||||||||
| Shares issued in exchange for services | $ 10 | 1,364,837 | |||||||||||||
| Shares issued in exchange for services (in Shares) | 100 | ||||||||||||||
| Net Loss | (1,645,525) | (1,645,525) | |||||||||||||
| Balance at Sep. 30, 2023 | $ 0 | $ 0 | $ 33,815 | $ 50 | $ 50,000 | $ 12 | $ 166,331 | $ 1,000 | $ 10 | $ 333,610 | $ 26 | 5,593,322 | (773,500) | (10,889,450) | (6,849,621) |
| Balance (in Shares) at Sep. 30, 2023 | 0 | 0 | 3,381,520 | 5,000 | 5,000,000 | 125,000 | 0 | 1,000,000 | 100 | 32,450,375,489 | 0 | ||||
| Balance at Dec. 31, 2023 | $ 0 | $ 0 | $ 33,815 | $ 50 | $ 50,000 | $ 12 | $ 166,331 | $ 1,000 | $ 10 | $ 535 | $ 26 | 8,876,064 | (773,500) | (12,992,877) | (4,638,534) |
| Balance (in Shares) at Dec. 31, 2023 | 0 | 0 | 3,381,520 | 5,000 | 5,000,000 | 125,000 | 0 | 1,000,000 | 10,000 | 53,520,830 | 0 | ||||
| Equity Issuance during 2024 | $ (10) | $ 829 | 368,467 | 369,286 | |||||||||||
| Equity Issuance during 2024 (in Shares) | 82,937,180 | ||||||||||||||
| Derivative liability adjustments for Q2 2024 | 227,455 | 227,455 | |||||||||||||
| Net Loss | (855,727) | (855,727) | |||||||||||||
| Balance at Sep. 30, 2024 | $ 0 | $ 0 | $ 33,815 | $ 50 | $ 50,000 | $ 12 | $ 166,331 | $ 1,000 | $ 0 | $ 1,365 | $ 26 | $ 9,471,986 | $ (773,500) | $ (13,848,604) | $ (4,897,519) |
| Balance (in Shares) at Sep. 30, 2024 | 0 | 0 | 3,381,520 | 5,000 | 5,000,000 | 125,000 | 0 | 1,000,000 | 10,000 | 136,458,010 | 0 |
Consolidated Statements of Cash Flows - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
|
| Cash Flows from Operating Activities | ||
| Net loss | $ (855,727) | $ (1,645,525) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
| Interest expense incurred on put premium on stock settled debt | 111,000 | |
| Amortization of debt discount | (98,319) | 418,163 |
| Stock-based compensation and shares issued for services | 265,802 | |
| Expenses incurred on extinguishment of convertible debt and accrued interest | 23,905 | |
| Initial derivative expense | 32,429 | |
| Change in fair value of derivative liability | 272,834 | 149,910 |
| Changes in operating assets and liabilities (net of amounts acquired): | ||
| Accounts receivable | 15,541 | |
| Prepaid expenses and other current assets | 980 | |
| Related party loans | (1,760) | |
| Accounts payable | (52,129) | 139,454 |
| Accrued expenses | (200,207) | (286) |
| Accrued Interest | 30,511 | |
| Accrued compensation | 274,083 | 324,139 |
| Accrued payroll taxes | 91,127 | |
| Acquisition payable | 200,000 | |
| Net Cash (Used In) Provided By Operating Activities | (369,118) | (134,957) |
| Cash Flows from Investing Activities | ||
| Net Cash Provided by Investing Activities | ||
| Cash Flows from Financing Activities | ||
| Proceeds from loans payable | 15,000 | 89,000 |
| Proceeds from equity issuances | 596,751 | |
| Repayment of loans | (243,596) | (117,278) |
| Net Cash Provided by Financing Activities | 368,155 | (28,278) |
| Net Change in Cash and Cash Equivalents | (963) | (163,235) |
| Cash And Cash Equivalents - Beginning of Year | 6,308 | 167,103 |
| Cash And Cash Equivalents - End of Year | 5,345 | 3,868 |
| Supplemental Disclosure of Cash and Non-cash Transactions: | ||
| Cash paid for interest | ||
| Non-Cash Transactions | ||
| Conversion of convertible debt to Common Stock | 369,286 | |
| Derivative liability adjustments to Additional Paid-In Capital | $ 227,455 | |
Background |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Background [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BACKGROUND | NOTE 1 – BACKGROUND
Reverse Merger and Corporate Restructure
On May 4, 2022, Cruzani, Inc. (“Cruzani” or the “Predecessor”) entered into a merger agreement (the “Merger Agreement”) with Bowmo, Inc. (“Bowmo”) and Bowmo Merger Sub, Inc. to acquire Bowmo. (the “Acquisition”). The transactions contemplated by the Merger Agreement were consummated on May 4, 2022, and pursuant to the terms of the Merger Agreement, all outstanding shares of Bowmo were exchanged for shares of Cruzani’s common stock and Bowmo became Cruzani’s wholly owned subsidiary.
The merger was effected pursuant to the Merger Agreement. The merger is being accounted for as a reverse merger whereby Bowmo is the acquirer for accounting purposes. Bowmo is considered the acquiring company for accounting purposes as upon completion of the Merger, Bowmo’s former stockholders held a majority of the voting interest of the combined company.
Pursuant to the merger, the Company issued Series G Preferred Stock holding the voting rights to 78% of the total voting equity securities to Bowmo’s stockholders. Upon completion of the acquisition, Bowmo is treated as the surviving entity and accounting acquirer although Cruzani was the legal acquirer. Accordingly, the historical financial statements are those of Bowmo.
Accounting for Reverse Merger
The fair value of Cruzani assets acquired and liabilities assumed was based upon management’s estimates.
The following table summarizes the allocation of purchase price of the acquisition:
Organization and Business
Bowmo, Inc. (FKA Cruzani, Inc.) (the “Company”) is an AI-powered recruiting platform. The Company’s principal lines of business are direct placement of candidates with employers and Recruiting as a Service which allows the Company’s customers to outsource the management of their recruiting process to the Company. The Company offers recruiting software and services through an online AI-driven platform to connect potential candidates to employers for all businesses looking to address hiring needs. The Company was incorporated as a Delaware corporation in 2016. |
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Going Concern |
9 Months Ended |
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Sep. 30, 2024 | |
| Going Concern [Abstract] | |
| GOING CONCERN | NOTE 2 – GOING CONCERN
The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going-concern basis. The going concern basis assumes that assets are realized, and liabilities are extinguished in the ordinary course of business at amounts disclosed in the consolidated financial statements. The Company has incurred recurring losses from operations.
The Company incurred a net loss for the nine months ended September 30, 2024, of $855,727, of which $582,893 was due to operations and the remainder was due primarily to derivative liabilities. As of September 30, 2024, the Company has a working capital deficit of $4,706,935 and an accumulated deficit of $13,848,604.
The Company’s ability to continue as a going concern depends upon its ability to obtain adequate funding to support its operations through continuing investments of debt and/or equity by qualified investors/creditors, internally generated working capital and monetization of intellectual property assets. These factors raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management is currently pursuing a business strategy which includes raising the necessary funds to finance the Company’s development and marketing efforts. |
Summary of Significant Accounting Policies |
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| Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of the Company’s stock, stock-based compensation, fair values relating to derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
COVID-19 Impacts on Accounting Policies and Estimates
COVID-19 Impacts on Accounting Policies and Estimates In light of the currently unknown ultimate duration and severity of COVID-19, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply our significant accounting policies. As COVID-19 continues to develop, we may make changes to these estimates and judgments over time, which could result in meaningful impacts to our financial statements in future periods.
Principals of Consolidation
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents
The Company accounts for cash and cash equivalents under FASB ASC 305, Cash and Cash Equivalents, and considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At September 30, 2024 and December 31, 2023, the Company had cash and cash equivalents of $5,345 and $6,308, respectively. There are no amounts that are uninsured by the FDIC (Federal Deposit Insurance Corporation).
Deferred Income Taxes and Valuation Allowance
We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns in accordance with applicable accounting guidance for accounting for income taxes, using currently enacted tax rates in effect for the year in which the differences are expected to reverse. We record a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. For the years ended December 31, 2023 and 2022, respectively, due to cumulative losses, we recorded a valuation allowance against our deferred tax asset that reduced our income tax benefit for the period to . As of December 31, 2023 and 2022, we had no liabilities related to federal or state income taxes and the carrying value of our deferred tax asset was .
The Company accounts for income taxes applying FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.
Financial Instruments
The Company adopted the provisions of Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) on January 1, 2008. ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value:
All items required to be recorded or measured on a recurring basis are based upon level 3 inputs. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.
Upon adoption of ASC 825-10, there was no cumulative effect adjustment to beginning retained earnings and no impact on the financial statements.
The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity.
Convertible Instruments
The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with various accounting standards.
ASC 480 “Distinguishing Liabilities From Equity” provides that instruments convertible predominantly at a fixed rate resulting in a fixed monetary amount due upon conversion with a variable quantity of shares (“stock settled debt”) be recorded as a liability at the fixed monetary amount.
ASC 815 “Derivatives and Hedging” generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument.”
The Company accounts for convertible instruments (when it has determined that the instrument is not a stock settled debt and the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the share transaction and the effective conversion price embedded in the preferred shares.
ASC 815-40 provides that generally if an event is not within the entity’s control and could require net cash settlement, then the contract shall be classified as an asset or a liability.
Convertible Notes with Fixed Rate Conversion Options
The Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability as stock settled debt in accordance with ASC 480 - “Distinguishing Liabilities from Equity” and measures the convertible note at its fixed monetary amount, which is the result of the share price discount at the time of conversion, and records the put premium, as applicable, on the note date with a charge to interest expense.
Derivative Instruments
The Company’s derivative financial instruments consist of derivatives with the sale of a convertible notes in 2024 and 2023. The accounting treatment of derivative financial instruments requires that the Company records the derivatives at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date. The carrying value assigned to the host instrument will be the difference between the previous carrying value of the host instrument and the fair value of the derivatives. There is an offsetting debt discount or premium as a result of the fair value assigned to the derivatives, as well as any debt issuance costs, which are amortized under the straight-line method over the term of the loan. Any change in fair value is recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company recorded non-operating, non-cash income.
Business Combinations
The Company accounts for its business combinations using the acquisition method of accounting. Under the acquisition method, assets acquired, liabilities assumed, and consideration transferred are recorded at the date of acquisition at their respective fair values. Definite-lived intangible assets are amortized over the expected life of the asset. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.
Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from business combinations and are expensed as incurred. The Company remeasures fair value as of each reporting date and changes resulting from events after the acquisition date, are recognized as follows: 1) if the contingent consideration is classified as equity, the contingent consideration is not re-measured and its subsequent settlement is accounted for within equity, or 2) if the contingent consideration is classified as a liability, the changes in fair value and accretion costs are recognized in earnings.
Revenue Recognition
For annual reporting periods after December 15, 2017, the Financial Accounting Standards Board (“FASB”) made effective ASU 2014-09 Revenue from Contracts with Customers, to supersede previous revenue recognition guidance under current U.S. GAAP. Revenue is now recognized in accordance with FASB ASC Topic 606, Revenue Recognition. The objective of the guidance is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The principle is to recognize revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Two options were made available for implementation of the standard: the full retrospective approach or modified retrospective approach. The guidance became effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted.
The Company generates revenue from (1) Recruiting as a Service (“Raas”), and (2) Direct Placement.
Recruiting as a Service:
RaaS allows the Company’s customers to outsource the management of their recruiting process allowing the Company to use the Application to assist its customers hiring needs by strategically gearing the service to reach the customer’s objectives. Revenue from RaaS consists of monthly billing to the customer for services provided.
RaaS service contracts with customers are month-to-month for a fixed price. Revenues are recognized on a gross basis when each monthly subscription service is completed.
Direct Placement
The Company generates direct placement revenue by earning one-time fees for each time an employer hires one of the candidates that the Company refers. The Company sources qualified candidate referrals for the employers’ available jobs through the use of the Company’s Application. Upon the employer hiring one or more of the Company’s candidate referrals, the Company earns the direct placement fee, which consists of an amount agreed upon between the Company and its customers. The fee is a percentage of the referred candidates’ first year’s base salary.
Direct placement revenues are recognized on a gross basis on the date of hire of the candidate placed with an employer, as it is more than probable that a significant revenue reversal will not occur. This fee is only charged to the employer. Any payments received prior to the hire date are recorded as deferred revenue on the consolidated balance sheets. Payments for recruitment services are typically due within 30 days of completion of services.
Direct placement revenue is subject to a 90-180 day guarantee that the candidate will not resign or be terminated in that time period. The Company uses historical evidence as well as additional factors to determine and estimate the amount of consideration received that the Company does not expect to be entitled to. For any amounts received for which the Company does not expect to be entitled, it would not recognize revenue when the candidate is hired but would recognize those amounts received as a refund liability. The Company included in the transaction price the estimated amount of variable consideration per the expected value method. A refund liability would be credited for the difference between cash consideration received and variable consideration recognized. The refund liability would be updated at the end of each reporting period for any changes in circumstances. As of December 31, 2023 and 2022 there was no refund liability on the consolidated balance sheets as historically no direct placement revenue has been refunded to the Company.
Revenue Segementation
For nine months ended September 30, 2024, and September 30, 2023, revenues can be categorized into the following:
Cost of revenues
Cost of revenue consist of employee costs, third party staffing costs, hosting service fees, and other fees, outsourced recruiter fees and commissions.
Concentrations of credit risk
Financial instruments which potentially subject the Company to credit risks consist primarily of cash and cash equivalents, and accounts receivable. Cash and cash equivalents are held in United States financial institutions. At times such amounts may exceed federally insured limits.
Stock-based compensation
We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment.
Recently Issued Accounting Pronouncements
We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.
Change in account principle
Commencing with the second quarter of 2022, the Company prospectively changed its accounting treatment for securities that contain predominantly, fixed rate conversion features by recording the derivative feature as a put premium on stock settled debt. See Note 7 for further discussion. The company believes this change in accounting principle is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features. |
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Business Combinations |
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| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS COMBINATIONS | NOTE 4 – BUSINESS COMBINATIONS
Interview Mastery Asset Purchase
On December 16, 2022, the Company entered into an Asset Purchase Agreement (the “APA”) with a related party, Interview Mastery Corporation (“Interview Mastery”), a Delaware corporation, by and through Michael R. Neece (“Neece”), the Company’s Chief Product Officer, and Caseridus, Inc. Under the terms of the APA, the Company will pay the purchase price through the issuance of 1,000,000,000 (pre-reverse split) shares of the Company’s common stock to the stockholders of Interview Mastery, valued at the stock price of $0.0002 on the acquisition date, that vest immediately for all of the business assets of Interview Mastery. An additional 1,000,000,000 (pre-reverse split) shares of Company common stock will be issued as compensation in consideration of Neece’s employment with the Company which shall vest over a four (4) year period during which 250,000,000 (pre-reverse split) shares will vest on the first-year anniversary of Neece’s employment, followed by vesting in increments of 62,500,000 shares per quarter (3-month period) thereafter until the full amount is vested and all of which shall be contingent upon Neece’s continual employment with the Company. These shares were valued using the share price of $0.0002 at the date of acquisition, and they will be expensed as stock-based compensation based on the vesting terms contingent upon continual employment of Neece. In connection with the APA, the Company created a new board seat and offered this seat to Neece who was formally invited to join the Company’s Board of Directors.
The acquisition was accounted for as a business combination in accordance with the acquisition method under the guidance in ASC 805-10 and 805-20. This business combination was accounted for as a related party acquisition, as Neece is the chief product officer of the Company.
Accordingly, the total purchase consideration was allocated to net assets acquired based on their respective historical costs. The assets acquired, and liabilities assumed, if any, in a business purchase combination be recognized at their historical costs as of the acquisition date.
The final allocation of the purchase price in connection with the Interview Mastery acquisition was calculated as follows:
Total acquisition costs incurred were $58,092 recorded as a component of General and administrative expenses. As a result of the business combination, the Company recognized a related party loss of $197,370 which is included in general and administrative expenses on the consolidated statements of operations during the year ended December 31, 2022.
Pro Forma Information
The results of operations of Interview Mastery will be included in the Company’s consolidated financial statements as of the date of acquisition through the current period end. The following supplemental pro-forma financial information approximate combined financial information assumes that the acquisition had occurred at the beginning of the years ended December 31, 2022 and 2021:
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Loans Payable |
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| LOANS PAYABLE | NOTE 5 – LOANS PAYABLE
As a result of the reverse merger that occurred on May 4, 2022, as discussed in Note 1, the Company assumed Loans 1 through 5 on the table below from Cruzani.
The Cruzani loan payable balances are as follows:
Annual maturities of the Cruzani notes payable are as follows:
Loans 1 through 5 are past due as of the issuance of these financial statements.
Loan 1) On May 30, 2013, and August 12, 2013, Cruzani received advances from a director for $2,000 and $25,000, respectively. On August 12, 2013, the Company entered into an unsecured, non-guaranteed, demand loan agreement with the director for $27,000. The loan bears interest at 1% per annum compounded monthly.
Loan 2) On February 27, 2014, and March 19, 2015, Cruzani received advances from a director of $6,000, and $10,200, respectively. During the year ended December 31, 2015, the Company repaid $13,200. The advances are unsecured, due on demand and bears interest at 1% per annum compounded and calculated monthly.
Loan 3) On September 18, 2014, May 29, 2015, July 3, 2015, December 2, 2015, and January 4, 2016, Cruzani entered into unsecured, non-guaranteed, loan agreements pursuant to which the Company received proceeds of $35,000, $4,000, $5,000, $22,000, and $45,000, respectively. The loans bear interest at 8% per annum compounded annually and are due 1 year after the date of issuance.
Loan 4) On December 4, 2014, January 29, 2015, August 12, 2015, August 21, 2015, September 1, 2015, September 15, 2015, November 13, 2015, and December 23, 2015, Cruzani issued unsecured notes payable of $20,000, $20,000, $20,000, $25,000, $40,000, $25,000, $30,000 and $10,000, respectively, to a significant shareholder. The notes bear interest at an annual rate of 8% per annum, are uncollateralized, and due 1 year after the date of issuance.
Loan 5) Entities negatively impacted by the coronavirus (“COVID-19”) pandemic were eligible to apply for loans sponsored by the United States Small Business Administration (“SBA”) Economic Injury Disaster Loan (“EIDL Loan”) program. On July 15, 2020, the Company received cash proceeds of $40,400 under this program. In addition, in July 2020, the Company received $6,000 from the SBA as a COVID-19 Economic Injury Disaster Loan Advance (the “EIDL Advance”). The proceeds can be used to fund payroll, healthcare benefits, rent and other qualifying expenses, and the loan is not subject to a loan forgiveness provision. The standard EIDL Loan repayment terms include interest accruing at 3.75% per annum effective July 15, 2020; the payment schedule contains a one-year deferral period on initial principal and interest payments; the loan term is thirty years; and there is no prepayment penalty or fees. The Company pledged all assets of the Company as collateral for the loan. As of December 31, 2021, the amounts outstanding totaled $40,400, and was classified as part of notes payable on the consolidated balance sheet. Additionally, the Company entered into a security agreement with the SBA in which this promissory note is collateralized by all tangible and intangible assets of the Company. On January 6, 2021, the SBA announced a one-year extension of the deferral period for loans that commenced in 2020 delaying payments of principal and interest to July 2022. Pursuant to an SBA Procedural Notice in December 2020, the EIDL Advance was forgiven. The Company has recognized the entire EIDL Advance amount of $6,000 as grant income, which is included in other income (expense) in the consolidated statement of operations for the year ended December 31, 2021.
In February 2022, the Company agreed to the first and second modifications of the EIDL Loan. The EIDL was modified to include additional borrowings of $269,200, which were received in full in February 2022. Periodic monthly payments have increased to $1,556 in the first modification, and reduced to $1,506 in the second modification. Additionally, the Company entered into an amended security agreement with the SBA in which this promissory note, and the modifications, is collateralized by all tangible and intangible assets of the Company. The balance of the EIDL loan balance at September 30, 2024, and December 31, 2023 $193,202 and $193,202, respectively. |
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Convertible Notes |
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| CONVERTIBLE NOTES | NOTE 6 – CONVERTIBLE NOTES
The following table summarizes the convertible notes as of September 30, 2024, and December 31, 2023:
Frondeur
Between June 1, 2022 and December 1, 2022, the Company entered into several convertible notes with Frondeur Partners, LLC bearing interest at 10% per annum and totaling $160,000. These convertible notes are convertible between 50% and 70% of the lowest close bid price of the Company’s stock price for a twenty day period. These convertible notes were accounted for as stock settled debt in accordance with ASC 480 - “Distinguishing Liabilities from Equity”, resulting in put premiums on stock settled debt being recognized. See Note 7. During the years ended December 31, 2023 and 2022, the lender opted to convert certain portions of the notes into shares of the Company’s common stock.
During the three months ended March 31, 2024, the Company issued three additional convertible notes to Fondeur. The aggregate principal amount of these notes is $30,000, and the notes are dated January 1, 2024 ($10,000), February 1, 2024 ($10,000) and March 1, 2024 ($10,000). They bear interest at 12% and are due in full at October 31, 2024, November 30, 2024 and December 31, 2024, respectively. Due to these conversions, the remaining principal balances at September 30, 2024, and December 31, 2023, was $16,083 and $123,793, respectively. The Company granted 150,000 warrants to purchase 150,000 shares of the Company’s common stock with these convertible notes. These warrants have an exercise price of $0.0001 and a term of five years.
Kings Wharf
On October 19, 2022, the Company entered into a convertible note with King Wharf Opportunities Fund bearing interest at 8% totaling $275,000. The note included an original issue discount of $25,000. This convertible note is convertible at the lesser of $0.0001 or 50% of the lowest trading price of the Company’s stock price for a thirty day period. The embedded conversion option of the convertible note contains conversion features that qualify for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. See Note 8. This convertible note is fully guaranteed by the Company’s Chief Executive Officer, Eddie Aizman, and President, Michael Lakshin. Additionally, on October 19, 2022, both Mr., Aizman and Mr. Lakshin, entered into pledge agreements in which they each have agreed to secure the Company’s payment obligations to the lender with a guaranty and a pledge of 163,461 shares of Series G preferred stock of the Company, for a total of 326,922 shares of Series G Preferred Stock. During the years ended December 31, 2023 and 2022, the lender opted to convert certain portions of the note into shares of the Company’s common stock. Due to these conversions, the remaining principal balances at September 30, 2024, and December 31, 2023, was $46,900 and $42,200, respectively.
1800 Diagonal Lending
November 10, 2023, the Company entered into a convertible note with 1800 Diagonal Lending bearing interest at 10% totaling $77,000. This convertible note is convertible at the lesser of $0.0001 or 61% of the lowest trading price of the Company’s stock price for a thirty-day period. The embedded conversion option of the convertible note contains conversion features that quality for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. The outstanding remaining principal balances at September 30, 2024, and December 31, 2023, was $112,000 and $77,000, respectively.
December 12, 2023, the Company entered into a convertible note with 1800 Diagonal Lending bearing interest at 10% totaling $40,000. This convertible note is convertible at the lesser of $0.0001 or 61% of the lowest trading price of the Company’s stock price for a thirty-day period. The embedded conversion option of the convertible note contains conversion features that quality for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. The outstanding remaining principal balances at September 30, 2024, and December 31, 2023, was $40,000 and $40,000, respectively.
During the six months ended June 30, 2024, the Company entered into a convertible note with 1800 Diagonal Lending bearing interest at 10% totaling $35,000. This convertible note is convertible at the lesser of $0.0001 or 61% of the lowest trading price of the Company’s stock price for a thirty-day period. The embedded conversion option of the convertible note contains conversion features that quality for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. The outstanding remaining principal balances at September 30, 2024, and December 31, 2023, was $35,000 and $0, respectively.
Trillium
Between May 25, 2021 and July 6, 2021, Cruzani entered into two convertible notes with Trillium Partners, LP bearing interest at 10% per annum and totaling $44,000. These convertible notes were convertible at a fixed price of $0.0001. During the years ended December 31, 2023 and 2022, the lender opted to convert certain portions of the note into shares of the Company’s common stock. Due to these conversions, the remaining principal balances at September 30, 2024, and December 31, 2023, was and , respectively.
Between June 1, 2022 and December 6, 2022, the Company entered into several convertible notes with Trillium Partners, LP bearing interest between 10% and 12% per annum and totaling $332,800. These convertible notes are convertible at a fixed price between $0.0001 and $0.0002. During the years ended December 31, 2023 and 2022, the lender opted to convert certain portions of the note into shares of the Company’s common stock. Due to these conversions, the remaining principal balances at September 30, 2024, and December 31, 2023, was and , respectely.
On October 19, 2022, the Company entered into a convertible note with Trillium Partners, LP bearing interest at 8% totaling $275,000. The note included an original issue discount of $25,000. This convertible note is convertible at the lesser of $0.0001 or 50% of the lowest trading price of the Company’s stock price for a thirty day period. The embedded conversion option of the convertible note contains conversion features that qualify for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. See Note 8. This convertible note is fully guaranteed by the Company’s Chief Executive Officer, Eddie Aizman, and President, Michael Lakshin. Additionally, on October 19, 2022, both Mr., Aizman and Mr. Lakshin, entered into pledge agreements in which they each have agreed to secure the Company’s payment obligations to the lender with a guaranty and a pledge of 163,461 shares of Series G preferred stock of the Company, for a total of 326,922 shares of Series G Preferred Stock. During the years ended December 31, 2023 and 2022, the lender opted to convert certain portions of the note into shares of the Company’s common stock. Due to these conversions, the remaining principal balances at September 30, 2024, and December 31, 2023, was $62,000 and $0, respectively.
During the six months ended June 30, 2024, the Company entered into four additional convertible notes with Trillium Partners, LP bearing interest of 10% to 12% totaling $62,000. These notes include original issue discounts totaling $7,000. These notes have 6 months maturity dates and are convertible at the lesser of $0.0001 or 50% of the lowest trading price of the Company’s stock price for a thirty day period. The embedded conversion option of the convertible note contains conversion features that qualify for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. The remaining principal balances at September 30, 2024, and December 31, 2023, was $62,000 and $0, respectively.
Matterhorn
On August 15, 2023, the Company entered into a convertible note with Matterhorn Partners LLC bearing interest at 12% totaling $25,000. The note included an original issue discount of $4,000. This convertible note is convertible at the lesser of $0.0001 or 50% of the lowest trading price of the Company’s stock price for a thirty-day period. The embedded conversion option of the convertible note contains conversion features that quality for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. This convertible note is fully guaranteed by the Company’s Chief Executive Officer, Eddie Aizman and President, Michael Lakshin. During the years ended December 31, 2023 and 2022, the lender opted to convert certain portions of the note into shares of the Company’s common stock. Due to these conversions, the remaining principal balances at September 30, 2024, and December 31, 2023, was $0 and $8,454, respectively.
On June 20, 2024 (not funded until July 1, 2024), the Company entered into a convertible note with Matterhorn Partners LLC bearing interest at 10% totaling $12,000. The note included an original issue discount of $2,000. This convertible note is convertible at a 50% discount to market of the lowest trading price of the Company’s stock price for a thirty-day period. The embedded conversion option of the convertible note contains conversion features that quality for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. The remaining principal balances at September 30, 2024, and December 31, 2023, was $12,000 and , respectively.
Travel Data Solutions
On November 18, 2017, Cruzani entered into a convertible promissory note for $25,000 with Travel Data Solutions, Inc., pursuant to which the Company received proceeds of $25,000. The notes are convertible at any time after September 13, 2018 at a mutually agree upon conversion price, bearing interest rate at 10% per annum and due on November 30, 2019. During January and February 2018, the Company received an additional $75,000 under the same terms as the previously issued convertible promissory note. During the year ended December 31, 2023, the balance of the note was converted into shares of the Company’s common stock. As of September 30, 2024, and December 31, 2023, the outstanding balance was and $125,000, respectively.
Travere Opportunity Fund
On June 20, 2024 (not funded until July 3, 2024), the Company entered into a convertible note with Matterhorn Partners LLC bearing interest at 10% totaling $12,000. The note included an original issue discount of $2,000. This convertible note is convertible at a 50% discount to market of the lowest trading price of the Company’s stock price for a thirty-day period. The embedded conversion option of the convertible note contains conversion features that quality for embedded derivative classification as a result of variable conversion price features, which is not a fixed discount rate. The remaining principal balances at September 30, 2024, and December 31, 2023, was $12,000 and $0, respectively.
Third Party
As a result of the reverse merger that occurred on May 4, 2022, as discussed in Note 1, the Company assumed convertible notes from Cruzani, most of which have been converted into common stock in the Company. The last remaining convertible debt outstanding during the nine months ended September 30, 2024, and the year ended December 31, 2023, was a note that was entered into on July 7, 2020. the Company issued a $84,681 convertible promissory note to a third party in exchange for $84,681. The Convertible Note bears interest at 10% per annum. All unpaid principal and accrued interest under the Convertible Note will be due and payable in full one year from issuance. After six months from the issuance date, the Holder may elect to convert into that number of shares of common stock equal to the quotient obtained by dividing the outstanding principal balance and unpaid accrued interest under this Note by the amount equal to the anticipate public market price of the Company’s common stock multiplied by fifty percent (50%). This convertible note was accounted for as stock settled debt in accordance with ASC 480 - “Distinguishing Liabilities from Equity”, resulting in put premiums on stock settled debt being recognized. See Note 7. As of December 31, 2022, this convertible note is in default and the principal and accrued interest balance remain outstanding. During the year ended December 31, 2023, the Company had additional borrowings of $6,728. As of September 30, 2024, and December 31, 2023, the outstanding balance was $40,099 and $230,232, respectively |
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Put Premium on Stock Settled Debt |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Put Premium on Stock Settled Debt [Abstract] | |
| PUT PREMIUM ON STOCK SETTLED DEBT | NOTE 7 – PUT PREMIUM ON STOCK SETTLED DEBT
At the end of the quarter ended June 30, 2022, the Company decided to adopt ASC 480 - “Distinguishing Liabilities from Equity.” When they enter into convertible notes, some of which contain, predominantly, fixed rate conversion features (See Note 7 for conversion terms), whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a put premium on the consolidated balance sheets, as applicable, on the note date with a charge to interest expense.
The put premiums are expensed on issuance of the debt with the liability released to additional paid in capital on conversion of the principal.
In previous years, the Company had recorded such items as derivative liabilities (See Note 8). Thus, there was a charge to put premium on stock settled debt and a decrease to derivative liability for all convertible debt determined to have fixed rate conversion options. On a going-forward basis, all put premiums will be recorded as a liability as put premium on stock settled debt on the consolidated balance sheets with a charge to interest expense.
The company believes this change in accounting principles is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features. This accounting change resulted in a gain on new methodology for accounting for debt conversion features of $0 and $27,856 on the statement of operations for the years ended December 31, 2023, and December 31, 2022, respectively. |
Derivative Liabilities |
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| Derivative Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE LIABILITIES | NOTE 8 – DERIVATIVE LIABILITIES
Commencing with the second quarter of 2022, the Company changed its accounting treatment for securities that contain predominantly, fixed rate conversion features by recording the derivative feature as a put premium on stock settled debt.
The embedded conversion options of certain of the Company’s convertible debentures summarized in Note 6 contain variable conversion features that qualify for embedded derivative classification under ASC 815-15 Embedded Derivatives. The fair value of these liabilities is re-measured at the end of every reporting period and the change in fair value is reported in the statement of operations as a gain or loss on derivative financial instruments.
The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities:
The Company uses Level 3 inputs for its valuation methodology for its conversion option liabilities as their fair values were determined by using Black-Scholes options pricing model. The option-pricing model requires a number of assumptions, of which the most significant are share price, expected volatility and the expected option term (the time from the issuance date until the maturity date). The Company has historically not paid dividends and has no foreseeable plans to issue dividends. The risk-free interest rate is based on the yield from governmental zero-coupon bonds with an equivalent term. As, required, these are classified based on the lowest level of input that is significant to the fair value measurement.
The following table shows the assumptions used in the calculations of its derivatives:
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Related Party Transactions |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 9 – RELATED PARTY TRANSACTIONS
For the nine months ended September 30, 2024, and the year ended December 31, 2023, expenses of $9,693 and $38,771 were incurred for recruitment services by an entity owned by Michael Neece, Chief Product Officer.
Per the agreement with Michael Neece, a salary of $12,500 and a bonus of $4,167 was accrued for the year ended December 31, 2022. For the year ended December 31, 2023, an additional $150,000 in salary and a bonus of $50,000 was accrued. For the nine months ended September 30, 2024, an additional $112,500 in salary was accrued.
On December 16, 2022, Bowmo, Inc. (the “Company”) entered into an Asset Purchase Agreement (the “APA”) with a related party, Interview Mastery Corporation (“Interview Mastery”), a Delaware corporation, by and through Michael R. Neece (“Neece”) and Caseridus, Inc. Michael Neece, the seller of Interview Mastery, is the chief product officer of the Company.
Through September 30, 2024, the Company owed Eddie Aizman and Michael Lakshin compensation based on their employment agreements; the agreements provide for annual salaries of $180,000 and $200,000, respectively commencing on September 6, 2022. During the year ended December 31, 2022, salaries of $57,205 and $63,562, were accrued for Eddie Aizman and Michael Lakshin, respectively. During the nine months ended September 30, 2024, and the year ended December 31, 2023, salaries of $180,000 and $200,000, were accrued for Eddie Aizman and Michael Lakshin, respectively on an annualized basis. As of September 30, 2024, the total due to Eddie Aizman and Michal Lakshin is $372,205 and $413,562, respectively.
On July 8, 2019, the Company executed an employment agreement with Conrad Huss. The agreement provides for a salary of $10,000 per month. As of September 30, 2024, no additional amounts have been credited to accrued compensation. |
Common Stock |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Common Stock [Abstract] | |
| COMMON STOCK | NOTE 10 – COMMON STOCK
The Company has been authorized to issue 40,000,000,000 shares of common stock, $0.00001 par value. Each share of issued and outstanding common stock shall entitle the holder thereof to fully participate in all shareholder meetings, to cast one vote on each matter with respect to which shareholders have the right to vote, and to share ratably in all dividends and other distributions declared and paid with respect to common stock, as well as in the net assets of the corporation upon liquidation or dissolution.
During the year ended December 31, 2022, the Company issued 18,094,721,962 (pre-reverse split) shares of common stock for the extinguishment of convertible debt.
During the year ended December 31, 2023, the Company issued 6,364,768,689 (post-reverse split) shares of common stock for the extinguishment of convertible debt.
During the three and nine months ended September 30, 2024, the Company issued 0 and 82,937,180 shares of common stock respectively for the extinguishment of convertible debt.
As of September 30, 2024, the Company had 136,458,010 shares of common stock outstanding.
Acquisition of Interview Mastery
As discussed in Note 4, on December 16, 2022, the Company acquired Interview Mastery at a purchase price of 1,000,000,000 (pre-reverse split) shares of the Company’s common stock, valued at $200,000 using the stock price on the acquisition date. As of September 30, 2024 and December 31, 2023, these shares have not been issued and are recorded as a liability within accrued expenses on the consolidated balance sheet.
Michael Neece employment agreement
On December 16, 2022, the Company entered into an employment agreement with Michael Neece, Chief Product Officer. Under the agreement, 1,000,000,000 (pre-reverse split) shares of Company common stock will be issued as compensation in consideration of Neece’s employment with the Company which shall vest over a four (4) year period during which 250,000,000 (pre-reverse split) shares will vest on the first-year anniversary of Neece’s employment, followed by vesting in increments of 62,500,000 (pre-reverse split) shares per quarter (3-month period) thereafter until the full amount is vested and all of which shall be contingent upon Neece’s continual employment with the Company. These shares were valued using the share price of $0.0002 at the date of acquisition, and they will be expensed as stock-based compensation based on the vesting terms contingent upon continual employment of Neece. As of the nine months ended September 30, 2024 and the year ended December 31, 2023, 250,000 and 250,000 shares have vested, respectively. |
Warrants |
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| Warrants [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| WARRANTS | NOTE 11 – WARRANTS
In connection with the issuance of convertible notes to Trillium and Fondeur, the Company issued 38,650,000 post-reverse split) common stock purchase warrants to purchase 38,650,000 shares of the Company’s common stock pursuant to the terms therein as a commitment fee. During the three months ended March 31, 2024, the Company, in connection with the three additional notes issued to Fondeur, granted the issuance of an additional 150,000 warrants to purchase 150,000 shares of the Company’s common stock.
These warrants have an exercise price per share between $0.025- $0.0010 the above and expire between five and seven years. The aggregate fair value of the warrants, which was allocated against the debt proceeds totaled $596,927 based on the Black Scholes Merton pricing model using the following estimates: exercise price ranging from $0.00025 and $0.0025, 2.50% to 4.28% risk free rate, 266.74% to 699.48% volatility and expected life of the warrants of 5 to 7 years. The fair value was credited to additional paid in capital and debited to debt discount to be amortized over the term of the loan.
A summary of the status of the Company’s outstanding stock warrants and changes during the periods is presented below:
The Company uses Level 3 inputs for its valuation methodology for its conversion option liabilities as their fair values were determined by using the Binomial option pricing model based on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on the Over the Counter Bulletin Board), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As, required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations:
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Preferred Stock |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Preferred Stock [Abstract] | |
| PREFERRED STOCK | NOTE 12 – PREFERRED STOCK
Series AA and Super Convertible Preferred Stock, has a par value of $0.001, may be converted at the holder’s election into shares of common stock at the conversion rate of one share of common stock for one share of Preferred Stock.
As of September 30, 2024, and December 31, 2023, there are 0 and 0 shares of Series AA and Super preferred stock outstanding, respectively.
Series A Convertible Preferred Stock, has a par value of $0.01, may be converted at the holder’s election into shares of common stock at the conversion rate of ten shares of common stock for one share of Series A Preferred Stock. Each share is entitled to 10 votes, voting with the common stock as a single class, has liquidation rights of $2.00 per share and is not entitled to receive dividends.
As of September 30, 2024, and December 31, 2023, there are 3,381,520 and 3,381,520 shares of Series A preferred stock outstanding, respectively.
Series B Convertible Preferred Stock, has a par value of $0.01, may be converted at the holder’s election into shares of common stock at the conversion rate of 4,000 shares of common stock for one share of Series B Preferred Stock. Each share is entitled to 4,000 votes, voting with the common stock as a single class, has liquidation rights of $0.01 per share and is not entitled to receive dividends.
As of September 30, 2024, and December 31, 2023, there are 5,000 and 5,000 shares of Series B preferred stock outstanding, respectively.
Series C Convertible Preferred Stock, has a par value of $0.01, may be converted at the holder’s election into shares of common stock at the conversion rate of 400 shares of common stock for one share of Series C Preferred Stock. Each share is entitled to 400 votes, voting with the common stock as a single class, has liquidation rights of $0.01 per share and is entitled to receive four hundred times the dividends declared and paid with respect to each share of Common Stock.
As of September 30, 2024, and December 31, 2023, there are 5,000,000 and 5,000,000 shares of Series C preferred stock outstanding, respectively.
Series D Convertible Preferred Stock, has a par value of $0.0001, may be converted at a ratio of the Stated Value plus dividends accrued but unpaid divided by the fixed conversion price of $0.0015, which conversion price is subject to adjustment. Series D is non-voting, has liquidation rights to be paid in cash, before any payment to common or junior stock, 140% of the Stated Value ($2.00) per share plus any dividends accrued but unpaid thereon and is entitled to 8% cumulative dividends.
As of September 30, 2024, and December 31, 2023, there are 125,000 and 125,000 shares of Series D preferred stock outstanding, respectively.
Series E Convertible Preferred Stock, has a par value of $0.001, and a stated value of $1.00 per share, subject to adjustment. The shares of Series E Convertible Preferred Stock can convert at a conversion price that is equal to the amount that is 61% of the lowest trading price of the Company’s common stock during the 20 trading days immediately preceding such conversion. The shares of Series E Convertible Preferred Stock are subject to redemption by the Company at its option from the date of issuance until the date that is 180 days therefrom, subject to premium that ranges from 120% to 145%, increasing by 5% during each 30-day period following issuance. Series E carries a 12% cumulative dividend, which will increase to 22% upon an event of default, is non-voting, and has liquidation rights to be paid in cash, before any payment to common or junior stock.
Series F Convertible Preferred Stock, has a par value of $0.001, may be converted at the holder’s election into shares of common stock at the current conversion rate of 93,761,718 shares of common stock for one share of Series F Preferred Stock. Each share is entitled to 93,761,718 votes, voting with the common stock as a single class, has no liquidation rights and is not entitled to receive dividends.
As of September 30, 2024, and December 31, 2023, there are 0 and 0 shares of Series F preferred stock issued, respectively.
Series G Convertible Preferred Stock, has a par value of $0.001, may be converted at the holder’s election into shares of common stock for a period ending 18 months following issuance at the conversion rate that will result, in the aggregate, in the holders of Series G Preferred Stock receiving that number of shares of Common Stock which equals Seventy Eight Percent (78%) of the total issued and outstanding shares of commons stock of the company on a fully diluted basis. The Series G Preferred Stock shall vote with the common stock as a single class, has liquidation rights of $0.001 per share and is entitled to receive an annal dividend of 6% of the Stated Value (the “Divided Rate”), which shall be cumulative, payable solely upon redemption, liquidation, or conversion.
As of September 30, 2024 and December 31, 2023, there are 1,000,000 and 1,000,000 shares of Series G preferred stock issued, respectively.
During the year ended December 31, 2022, as consideration for the reverse merger, the Company issued 1,000,000 shares of Series G Convertible Preferred stock.
On November 18, 2021, pursuant to the Founders Agreement, Michael Lakshin, President, and Edward Aizman, CEO, were issued 500 shares of Super Preferred Stock at a fair value of $50. These preferred shares, along with the 652,259 Series AA preferred stock, were cancelled on May 4, 2022, upon completion of the Reverse Merger. See Note 1. |
Commitments and Contingencies |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | NOTE 13 – COMMITMENTS AND CONTINGENCIES
Contingency arising from indebtedness owed to Oasis Capital, LLC
A contingency arises when there is a situation for which the outcome is uncertain, and which should be resolved in the future, Generally Accepted Accounting Principles require recognition of only those losses that are probable and for which a loss amount can be reasonably estimated.
The following details the nature of the contingency with Oasis Capital LLC (“Oasis”). In the normal course of its business, Oasis files notices to convert (“conversion notices”) a portion of its outstanding ownership of the Company’s indebtedness into shares of common stock. As a customary procedure for the annual audit for the period ended December 31, 2020, of Cruzani, Cruzani’s auditors confirmed its outstanding balance of the indebtedness and related accrued interest. During the year ended December 31, 2021, Oasis submitted conversions which stated that the outstanding indebtedness was far greater than that which was on the Company’s books. The total amount of the increased indebtedness was approximately $1.2 million. After investigation, the Company determined that the difference related to liquidated damages that the Company does not believe that it owes.
Since the Company believes that the loss is not probable and no litigation has been pursued at this time, there has been no recognition of this liability on the books and records of the Company.
Legal
During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with FASB ASC 450-20-50, Contingencies. The Company evaluates its exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably estimated, it establishes the necessary accruals. A contingency arises when there is a situation for which the outcome is uncertain, and which should be resolved in the future, Generally Accepted Accounting Principles require recognition of only those losses that are probable and for which a loss amount can be reasonably estimated.
On February 13, 2017, Baum Glass & Jayne PLLC (“Plaintiff”) obtained a default judgment against the Company in the amount of $27,084. Plaintiff has not attempted enforced collection. The amount was included in accounts payable as of September 30, 2024. |
Income Tax |
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| Income Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAX | NOTE 14 – INCOME TAX
There was income tax expense reflected in the results of operations for the years ended December 31, 2023 and 2022 because the Company incurred a net loss for tax purposes.
As of December 31, 2023 and 2022, the Company had federal and state net operating loss carry forwards of $12,992,877 and $9,243,925, respectively which may be used to offset future taxable income. Approximately $1,696,000 will begin to expire in 2036 while $5,920,000 will not expire but will be limited in annual utilization of 80% of current year income.
The tax effects of temporary differences which give rise to deferred tax assets (liabilities) are summarized as follows:
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability.
Reconciliation of the statutory federal income tax to the Company’s effective income tax rate for the years ended December 31, 2023 and 2022:
Internal Revenue Code Section 382 limits the ability to utilize net operating losses if a 50% change in ownership occurs over a three-year period. Such limitation of the net operating losses may have occurred, but we have not analyzed it at this time as the deferred tax asset is fully reserved.
On March 27, 2020, the US government signed the CARES Act into law, a $2 trillion relief package to provide support to individuals, businesses, and government organizations during the COVID-19 pandemic. During 2020, $91,035 in PPP relief was received under the CARES Act and was forgiven free of taxation in 2021.
The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of December 31, 2023 and 2022 the Company had no unrecognized tax benefits. There were no changes in the Company’s unrecognized tax benefits during the years ended December 31, 2023 and 2022. The Company did not recognize any interest or penalties during fiscal 2023 or 2022 related to unrecognized tax benefits.
For the years ended December 31, 2023 and 2022, the net increase in valuation allowance was approximately $710,315 and $1,777,000, respectively.
Tax years 2018-2021 remain open to examination for federal income tax purposes and by other major taxing jurisdictions to which the Company is subject. |
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Subsequent Events |
9 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | NOTE 15 – SUBSEQUENT EVENTS
In accordance with ASC 855-10, the company has analyzed its operations subsequent to September 30, 2024, through the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements. |
Pay vs Performance Disclosure - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
| Pay vs Performance Disclosure | ||||
| Net Income (Loss) | $ (164,641) | $ (997,439) | $ (855,727) | $ (1,645,525) |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Sep. 30, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy (Policies) |
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Sep. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company’s system of internal accounting control is designed to assure, among other items, that (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. |
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| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of the Company’s stock, stock-based compensation, fair values relating to derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates. |
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| COVID-19 Impacts on Accounting Policies and Estimates | COVID-19 Impacts on Accounting Policies and Estimates COVID-19 Impacts on Accounting Policies and Estimates In light of the currently unknown ultimate duration and severity of COVID-19, we face a greater degree of uncertainty than normal in making the judgments and estimates needed to apply our significant accounting policies. As COVID-19 continues to develop, we may make changes to these estimates and judgments over time, which could result in meaningful impacts to our financial statements in future periods.
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| Principals of Consolidation | Principals of Consolidation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
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| Cash and Cash Equivalents | Cash and Cash Equivalents The Company accounts for cash and cash equivalents under FASB ASC 305, Cash and Cash Equivalents, and considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At September 30, 2024 and December 31, 2023, the Company had cash and cash equivalents of $5,345 and $6,308, respectively. There are no amounts that are uninsured by the FDIC (Federal Deposit Insurance Corporation). |
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| Deferred Income Taxes and Valuation Allowance | Deferred Income Taxes and Valuation Allowance We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns in accordance with applicable accounting guidance for accounting for income taxes, using currently enacted tax rates in effect for the year in which the differences are expected to reverse. We record a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. For the years ended December 31, 2023 and 2022, respectively, due to cumulative losses, we recorded a valuation allowance against our deferred tax asset that reduced our income tax benefit for the period to . As of December 31, 2023 and 2022, we had no liabilities related to federal or state income taxes and the carrying value of our deferred tax asset was . The Company accounts for income taxes applying FASB ASC 740, which requires the recognition of deferred tax liabilities and assets for expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. |
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| Financial Instruments | Financial Instruments The Company adopted the provisions of Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) on January 1, 2008. ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value:
All items required to be recorded or measured on a recurring basis are based upon level 3 inputs. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement. Upon adoption of ASC 825-10, there was no cumulative effect adjustment to beginning retained earnings and no impact on the financial statements. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings (including convertible notes payable), and other current assets and liabilities approximate fair value because of their short-term maturity. |
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| Convertible Instruments | Convertible Instruments The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with various accounting standards. ASC 480 “Distinguishing Liabilities From Equity” provides that instruments convertible predominantly at a fixed rate resulting in a fixed monetary amount due upon conversion with a variable quantity of shares (“stock settled debt”) be recorded as a liability at the fixed monetary amount. ASC 815 “Derivatives and Hedging” generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument.” The Company accounts for convertible instruments (when it has determined that the instrument is not a stock settled debt and the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the share transaction and the effective conversion price embedded in the preferred shares. ASC 815-40 provides that generally if an event is not within the entity’s control and could require net cash settlement, then the contract shall be classified as an asset or a liability.
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| Convertible Notes with Fixed Rate Conversion Options | Convertible Notes with Fixed Rate Conversion Options The Company may enter into convertible notes, some of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. This results in a fair value of the convertible note being equal to a fixed monetary amount. The Company records the convertible note liability as stock settled debt in accordance with ASC 480 - “Distinguishing Liabilities from Equity” and measures the convertible note at its fixed monetary amount, which is the result of the share price discount at the time of conversion, and records the put premium, as applicable, on the note date with a charge to interest expense. |
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| Derivative Instruments | Derivative Instruments The Company’s derivative financial instruments consist of derivatives with the sale of a convertible notes in 2024 and 2023. The accounting treatment of derivative financial instruments requires that the Company records the derivatives at their fair values as of the inception date of the debt agreements and at fair value as of each subsequent balance sheet date. The carrying value assigned to the host instrument will be the difference between the previous carrying value of the host instrument and the fair value of the derivatives. There is an offsetting debt discount or premium as a result of the fair value assigned to the derivatives, as well as any debt issuance costs, which are amortized under the straight-line method over the term of the loan. Any change in fair value is recorded as non-operating, non-cash income or expense at each balance sheet date. If the fair value of the derivatives was higher at the subsequent balance sheet date, the Company recorded a non-operating, non-cash charge. If the fair value of the derivatives was lower at the subsequent balance sheet date, the Company recorded non-operating, non-cash income. |
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| Business Combinations | Business Combinations The Company accounts for its business combinations using the acquisition method of accounting. Under the acquisition method, assets acquired, liabilities assumed, and consideration transferred are recorded at the date of acquisition at their respective fair values. Definite-lived intangible assets are amortized over the expected life of the asset. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. Acquisition-related expenses are recognized separately from business combinations and are expensed as incurred. The Company remeasures fair value as of each reporting date and changes resulting from events after the acquisition date, are recognized as follows: 1) if the contingent consideration is classified as equity, the contingent consideration is not re-measured and its subsequent settlement is accounted for within equity, or 2) if the contingent consideration is classified as a liability, the changes in fair value and accretion costs are recognized in earnings. |
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| Revenue Recognition | Revenue Recognition For annual reporting periods after December 15, 2017, the Financial Accounting Standards Board (“FASB”) made effective ASU 2014-09 Revenue from Contracts with Customers, to supersede previous revenue recognition guidance under current U.S. GAAP. Revenue is now recognized in accordance with FASB ASC Topic 606, Revenue Recognition. The objective of the guidance is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The principle is to recognize revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Two options were made available for implementation of the standard: the full retrospective approach or modified retrospective approach. The guidance became effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. The Company generates revenue from (1) Recruiting as a Service (“Raas”), and (2) Direct Placement.
Recruiting as a Service: RaaS allows the Company’s customers to outsource the management of their recruiting process allowing the Company to use the Application to assist its customers hiring needs by strategically gearing the service to reach the customer’s objectives. Revenue from RaaS consists of monthly billing to the customer for services provided. RaaS service contracts with customers are month-to-month for a fixed price. Revenues are recognized on a gross basis when each monthly subscription service is completed. Direct Placement The Company generates direct placement revenue by earning one-time fees for each time an employer hires one of the candidates that the Company refers. The Company sources qualified candidate referrals for the employers’ available jobs through the use of the Company’s Application. Upon the employer hiring one or more of the Company’s candidate referrals, the Company earns the direct placement fee, which consists of an amount agreed upon between the Company and its customers. The fee is a percentage of the referred candidates’ first year’s base salary. Direct placement revenues are recognized on a gross basis on the date of hire of the candidate placed with an employer, as it is more than probable that a significant revenue reversal will not occur. This fee is only charged to the employer. Any payments received prior to the hire date are recorded as deferred revenue on the consolidated balance sheets. Payments for recruitment services are typically due within 30 days of completion of services. Direct placement revenue is subject to a 90-180 day guarantee that the candidate will not resign or be terminated in that time period. The Company uses historical evidence as well as additional factors to determine and estimate the amount of consideration received that the Company does not expect to be entitled to. For any amounts received for which the Company does not expect to be entitled, it would not recognize revenue when the candidate is hired but would recognize those amounts received as a refund liability. The Company included in the transaction price the estimated amount of variable consideration per the expected value method. A refund liability would be credited for the difference between cash consideration received and variable consideration recognized. The refund liability would be updated at the end of each reporting period for any changes in circumstances. As of December 31, 2023 and 2022 there was no refund liability on the consolidated balance sheets as historically no direct placement revenue has been refunded to the Company. |
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| Revenue Segementation | Revenue Segementation For nine months ended September 30, 2024, and September 30, 2023, revenues can be categorized into the following:
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| Cost of revenues | Cost of revenues Cost of revenue consist of employee costs, third party staffing costs, hosting service fees, and other fees, outsourced recruiter fees and commissions. |
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| Concentrations of credit risk | Concentrations of credit risk Financial instruments which potentially subject the Company to credit risks consist primarily of cash and cash equivalents, and accounts receivable. Cash and cash equivalents are held in United States financial institutions. At times such amounts may exceed federally insured limits.
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| Stock-based compensation | Stock-based compensation We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. |
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| Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration. |
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| Change in account principle | Change in account principle Commencing with the second quarter of 2022, the Company prospectively changed its accounting treatment for securities that contain predominantly, fixed rate conversion features by recording the derivative feature as a put premium on stock settled debt. See Note 7 for further discussion. The company believes this change in accounting principle is preferable as it applies a more consistent method of accounting for convertible notes that contain similar conversion features. |
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Background (Tables) |
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| Background [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Allocation of Purchase Price of the Acquisition | The following table summarizes the allocation
of purchase price of the acquisition:
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Summary of Significant Accounting Policies (Tables) |
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| Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenues | For nine months ended September 30, 2024, and
September 30, 2023, revenues can be categorized into the following:
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Business Combinations (Tables) |
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| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Allocation of Purchase Price of Acquisition | The final allocation of the purchase price in
connection with the Interview Mastery acquisition was calculated as follows:
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| Schedule of Pro Forma Information | The following supplemental pro-forma financial information approximate combined financial information assumes that the acquisition had
occurred at the beginning of the years ended December 31, 2022 and 2021:
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Loans Payable (Tables) |
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| Loans Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loan Payable | The Cruzani loan payable balances are as follows:
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| Schedule of Annual Maturities of Notes Payable | Annual maturities of the Cruzani notes payable are as follows:
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Convertible Notes (Tables) |
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| Schedule of Convertible Notes | The following table summarizes the convertible
notes as of September 30, 2024, and December 31, 2023:
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Derivative Liabilities (Tables) |
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| Derivative Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes in the Fair Value | The table below sets forth a summary of changes
in the fair value of the Company’s Level 3 financial liabilities:
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| Schedule of Assumptions Used in The Calculations of its Derivatives | The following table shows the assumptions used
in the calculations of its derivatives:
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Warrants (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warrants [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Outstanding Stock Warrants | A summary of the status of the Company’s
outstanding stock warrants and changes during the periods is presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Significant to Fair Value Measurement | The following table shows the assumptions used in the calculations:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Tax Effects of Temporary Differences to Deferred Tax Assets (Liabilities) | The tax effects of temporary differences which
give rise to deferred tax assets (liabilities) are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Statutory Federal Income Tax Effective Income Tax Rate | Reconciliation of the statutory federal income tax to the Company’s
effective income tax rate for the years ended December 31, 2023 and 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Background (Details) |
Sep. 30, 2024 |
|---|---|
| Series G Preferred Stock [Member] | Business Combination [Member] | |
| Background [Line Items] | |
| Voting equity securities | 78.00% |
Background (Details) - Schedule of Allocation of Purchase Price of the Acquisition - Business Acquisition [Member] |
Sep. 30, 2024
USD ($)
|
|---|---|
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Cash and cash equivalents | $ 517 |
| Accounts payable | (326,400) |
| Accrued interest | (1,197,027) |
| Accrued officer compensation | (453,333) |
| Convertible Notes | (620,933) |
| Put premium on stock settled debt | (230,743) |
| Loans payable | (254,500) |
| Net Tangible Assets Acquired | (3,082,419) |
| Equity Acquired: | |
| Common stock 20,000,000,000 shares authorized, $0.00001 par value; 8,955,014,498 shares issued and outstanding | (89,550) |
| Treasury stock, at cost – 2,917 shares | 773,500 |
| Additional paid in capital | (2,648,676) |
| Series A Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock, value | (33,815) |
| Series B Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock, value | (50) |
| Series C Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock, value | (50,000) |
| Series D Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock, value | (12) |
| Series E Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock, value | (166,331) |
| Series F Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock, value | |
| Series G Preferred Stock [Member] | |
| Equity Acquired: | |
| Preferred stock voting equity securities to Bowmo’s stockholders | $ 1,000 |
Background (Details) - Schedule of Allocation of Purchase Price of the Acquisition (Parentheticals) - Business Acquisition [Member] |
Sep. 30, 2024
$ / shares
shares
|
|---|---|
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Common stock par value (in Dollars per share) | $ / shares | $ 0.00001 |
| Common stock, shares authorized | 20,000,000,000 |
| Common stock, shares issued | 8,955,014,498 |
| Common stock, shares outstanding | 8,955,014,498 |
| Treasury stock, shares | 2,917 |
| Series A Preferred Stock [Member] | |
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Preferred stock par value (in Dollars per share) | $ / shares | $ 0.01 |
| Preferred stock, shares authorized | 3,500,000 |
| Preferred stock, shares issued | 3,381,520 |
| Preferred stock, shares outstanding | 3,381,520 |
| Series B Preferred Stock [Member] | |
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Preferred stock par value (in Dollars per share) | $ / shares | $ 0.01 |
| Preferred stock, shares authorized | 10,000 |
| Preferred stock, shares issued | 5,000 |
| Preferred stock, shares outstanding | 5,000 |
| Series C Preferred Stock [Member] | |
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Preferred stock par value (in Dollars per share) | $ / shares | $ 0.01 |
| Preferred stock, shares authorized | 10,000,000 |
| Preferred stock, shares issued | 5,000,000 |
| Preferred stock, shares outstanding | 5,000,000 |
| Series D Preferred Stock [Member] | |
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Preferred stock par value (in Dollars per share) | $ / shares | $ 0.0001 |
| Preferred stock, shares authorized | 125,000 |
| Preferred stock, shares issued | 125,000 |
| Preferred stock, shares outstanding | 125,000 |
| Series F Preferred Stock [Member] | |
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Preferred stock par value (in Dollars per share) | $ / shares | $ 0.0001 |
| Preferred stock, shares authorized | 101 |
| Preferred stock, shares issued | 101 |
| Preferred stock, shares outstanding | 101 |
| Series G Preferred Stock [Member] | |
| Schedule of Allocation of Purchase Price of the Acquisition [Line Items] | |
| Preferred stock holding the voting rights | 78.00% |
Going Concern (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
| Going Concern [Abstract] | |||||
| Net income loss | $ (164,641) | $ (997,439) | $ (855,727) | $ (1,645,525) | |
| Loss from operation | (206,287) | $ (247,881) | (582,893) | $ (796,413) | |
| Working capital deficit | 4,706,935 | 4,706,935 | |||
| Accumulated deficit | $ (13,848,604) | $ (13,848,604) | $ (12,992,877) | ||
Summary of Significant Accounting Policies (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Summary of Business and Basis of Presentation [Line Items] | ||||||
| Cash and cash equivalents | $ 5,345 | $ 5,345 | $ 6,308 | |||
| Income tax benefit | ||||||
| Deferred tax asset | ||||||
| Minimum [Member] | Direct placement [Member] | ||||||
| Summary of Business and Basis of Presentation [Line Items] | ||||||
| Termination period | 90 days | |||||
| Maximum [Member] | Direct placement [Member] | ||||||
| Summary of Business and Basis of Presentation [Line Items] | ||||||
| Termination period | 180 days | |||||
Summary of Significant Accounting Policies (Details) - Schedule of Revenues - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
| Schedule of Revenues [Line Items] | ||||
| Revenues | $ 62,000 | $ 66,476 | ||
| Direct placement [Member] | ||||
| Schedule of Revenues [Line Items] | ||||
| Revenues | 62,000 | |||
| Recruiting as a Service [Member] | ||||
| Schedule of Revenues [Line Items] | ||||
| Revenues | $ 4,476 | |||
Business Combinations (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |
|---|---|---|---|
Dec. 16, 2022 |
Sep. 30, 2024 |
Dec. 31, 2023 |
|
| Business Combinations [Line Items] | |||
| General and administrative expenses (in Dollars) | $ 58,092 | ||
| Asset Purchase Agreement [Member] | |||
| Business Combinations [Line Items] | |||
| Vested shares | 250,000,000 | ||
| Vesting in increments shares | 62,500,000 | ||
| Michael R Neece [Member] | |||
| Business Combinations [Line Items] | |||
| Stock price per share (in Dollars per share) | $ 0.0002 | ||
| Vesting period | 4 years | ||
| Vested shares | 250,000 | 250,000 | |
| Michael R Neece [Member] | Asset Purchase Agreement [Member] | |||
| Business Combinations [Line Items] | |||
| Stock price per share (in Dollars per share) | $ 0.0002 | ||
| Vesting period | 4 years | ||
| Interview Mastery Acquisition [Member] | Asset Purchase Agreement [Member] | |||
| Business Combinations [Line Items] | |||
| Stock price per share (in Dollars per share) | $ 0.0002 | ||
| General and Administrative Expense [Member] | |||
| Business Combinations [Line Items] | |||
| Loss on acquisition - related party (in Dollars) | $ 197,370 | ||
| Common Stock [Member] | |||
| Business Combinations [Line Items] | |||
| Reverse split | 1,000,000,000 | ||
| Common Stock [Member] | Interview Mastery Acquisition [Member] | |||
| Business Combinations [Line Items] | |||
| Reverse split | 1,000,000,000 |
Business Combinations (Details) - Schedule of Allocation of Purchase Price of Acquisition - Interview Mastery [Member] |
9 Months Ended |
|---|---|
|
Sep. 30, 2024
USD ($)
| |
| Schedule of Allocation of Purchase Price of Acquisition [Line Items] | |
| Fair Value | $ 200,000 |
| Weighted Average Useful Life (Years) | |
| Cash [Member] | |
| Schedule of Allocation of Purchase Price of Acquisition [Line Items] | |
| Fair Value | $ 1,633 |
| Prepaid expenses [Member] | |
| Schedule of Allocation of Purchase Price of Acquisition [Line Items] | |
| Fair Value | 997 |
| Loss on acquisition – related party [Member] | |
| Schedule of Allocation of Purchase Price of Acquisition [Line Items] | |
| Fair Value | $ 197,370 |
Business Combinations (Details) - Schedule of Pro Forma Information - USD ($) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Schedule of Pro Forma Information [Abstract] | ||
| Revenue | $ 198,982 | $ 216,367 |
| Net Loss | $ (4,595,717) | $ (287,779) |
| Earnings (Loss) per common share, basic (in Dollars per share) | $ (0.02) | |
| Earnings (Loss) per common share, diluted (in Dollars per share) | $ (0.02) | |
Loans Payable (Details) - USD ($) |
1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 15, 2020 |
Jan. 04, 2016 |
Dec. 31, 2015 |
Dec. 23, 2015 |
Dec. 02, 2015 |
Nov. 13, 2015 |
Sep. 15, 2015 |
Sep. 01, 2015 |
Aug. 21, 2015 |
Aug. 12, 2015 |
Jul. 03, 2015 |
May 29, 2015 |
Mar. 19, 2015 |
Jan. 29, 2015 |
Dec. 04, 2014 |
Sep. 18, 2014 |
Feb. 27, 2014 |
Aug. 12, 2013 |
May 30, 2013 |
Feb. 28, 2022 |
Jul. 31, 2020 |
Sep. 30, 2024 |
Dec. 31, 2021 |
Dec. 31, 2023 |
|
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Loan bears interest rate | 12.00% | |||||||||||||||||||||||
| Loan value | $ 193,202 | $ 193,202 | ||||||||||||||||||||||
| Loan 1 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Unsecured loan payable | $ 27,000 | |||||||||||||||||||||||
| Loan bears interest rate | 1.00% | |||||||||||||||||||||||
| Loan 1 [Member] | Cruzani [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Received from loan payable | $ 25,000 | $ 2,000 | ||||||||||||||||||||||
| Loan 2 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Received from loan payable | $ 10,200 | $ 6,000 | ||||||||||||||||||||||
| Loan bears interest rate | 1.00% | |||||||||||||||||||||||
| Repayment of note payable | $ 13,200 | |||||||||||||||||||||||
| Loan 3 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Unsecured loan payable | $ 45,000 | $ 22,000 | $ 5,000 | $ 4,000 | $ 35,000 | |||||||||||||||||||
| Loan bears interest rate | 8.00% | |||||||||||||||||||||||
| Loan 4 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Unsecured loan payable | $ 10,000 | $ 30,000 | $ 25,000 | $ 40,000 | $ 25,000 | $ 20,000 | $ 20,000 | $ 20,000 | ||||||||||||||||
| Loan bears interest rate | 8.00% | |||||||||||||||||||||||
| Loan 5 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Loan bears interest rate | 3.75% | |||||||||||||||||||||||
| Loan term | thirty years | |||||||||||||||||||||||
| Notes payable | $ 40,400 | |||||||||||||||||||||||
| Other income expense | $ 6,000 | |||||||||||||||||||||||
| Additional borrowings | $ 269,200 | |||||||||||||||||||||||
| EIDL Loan [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Loan value | $ 193,202 | $ 193,202 | ||||||||||||||||||||||
| United States Small Business Administration [Member] | Loan 5 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Received from loan payable | $ 40,400 | |||||||||||||||||||||||
| United States Small Business Administration [Member] | EDIL Advance [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Received from loan payable | $ 6,000 | |||||||||||||||||||||||
| Maximum [Member] | Loan 5 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Periodic monthly payments | 1,556 | |||||||||||||||||||||||
| Minimum [Member] | Loan 5 [Member] | ||||||||||||||||||||||||
| Loans Payable [Line Items] | ||||||||||||||||||||||||
| Periodic monthly payments | $ 1,506 | |||||||||||||||||||||||
Loans Payable (Details) - Schedule of Loan Payable - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2024 |
Dec. 31, 2023 |
|
| Schedule of Loan Payable [Line Items] | ||
| Loan Payable | $ 269,500 | $ 254,500 |
| Loan 1 [Member] | ||
| Schedule of Loan Payable [Line Items] | ||
| Interest rate | 1.00% | |
| Loan Payable | $ 42,000 | 27,000 |
| Loan 2 [Member] | ||
| Schedule of Loan Payable [Line Items] | ||
| Interest rate | 1.00% | |
| Loan Payable | $ 3,000 | 3,000 |
| Loan 3 [Member] | ||
| Schedule of Loan Payable [Line Items] | ||
| Interest rate | 8.00% | |
| Loan Payable | $ 64,000 | 64,000 |
| Loan 4 [Member] | ||
| Schedule of Loan Payable [Line Items] | ||
| Interest rate | 8.00% | |
| Loan Payable | $ 160,500 | 160,500 |
| Loan 5 [Member] | ||
| Schedule of Loan Payable [Line Items] | ||
| Loan Payable |
Loans Payable (Details) - Schedule of Annual Maturities of Notes Payable |
Sep. 30, 2024
USD ($)
|
|---|---|
| Long-Term Debt, Fiscal Year Maturity [Abstract] | |
| December 31, 2024 | $ 6,807 |
| December 31, 2025 | 7,066 |
| December 31, 2026 | 7,336 |
| December 31, 2027 | 7,616 |
| Thereafter | 240,675 |
| Total payments | $ 269,500 |
Convertible Notes (Details) - USD ($) |
1 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 20, 2024 |
Dec. 12, 2023 |
Nov. 10, 2023 |
Aug. 15, 2023 |
Oct. 19, 2022 |
Nov. 18, 2017 |
Feb. 28, 2018 |
Jan. 31, 2018 |
Jun. 30, 2024 |
Dec. 01, 2022 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Mar. 31, 2024 |
Mar. 01, 2024 |
Feb. 01, 2024 |
Jan. 01, 2024 |
Dec. 31, 2023 |
Dec. 06, 2022 |
Jul. 06, 2021 |
|||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 12.00% | ||||||||||||||||||||
| Remaining principal balances | |||||||||||||||||||||
| Convertible note | $ 10,000 | $ 10,000 | $ 10,000 | ||||||||||||||||||
| Original issue discount | $ (98,319) | $ 418,163 | |||||||||||||||||||
| Convertible fixed price (in Dollars per share) | [1] | $ 0.00001 | $ 0.00001 | ||||||||||||||||||
| Additional borrowings | $ 6,728 | ||||||||||||||||||||
| Warrant [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Warrants granted (in Shares) | 150,000 | ||||||||||||||||||||
| Exercise price (in Dollars per share) | $ 0.0001 | ||||||||||||||||||||
| Warrant term | 5 years | ||||||||||||||||||||
| Frondeur [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 160,000 | ||||||||||||||||||||
| King Wharf Opportunities Fund [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Diagonal Lending [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 77,000 | ||||||||||||||||||||
| Percentage of lowest close bid price | 61.00% | 61.00% | 61.00% | ||||||||||||||||||
| Trillium Partners, LP [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 275,000 | ||||||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Convertible note totaling | $ 62,000 | ||||||||||||||||||||
| Matterhorn [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Travere Opportunity Fund [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Minimum [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Exercise price (in Dollars per share) | $ 0.001 | ||||||||||||||||||||
| Warrant term | 5 years | ||||||||||||||||||||
| Minimum [Member] | Frondeur [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Minimum [Member] | Trillium Partners, LP [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Interest rate | 10.00% | ||||||||||||||||||||
| Maximum [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Exercise price (in Dollars per share) | $ 0.025 | ||||||||||||||||||||
| Warrant term | 7 years | ||||||||||||||||||||
| Maximum [Member] | Frondeur [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Percentage of lowest close bid price | 70.00% | ||||||||||||||||||||
| Maximum [Member] | Trillium Partners, LP [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Interest rate | 12.00% | ||||||||||||||||||||
| Common Stock [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Warrants granted (in Shares) | 150,000 | ||||||||||||||||||||
| Frondeur [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 10.00% | ||||||||||||||||||||
| Frondeur Partners LLC [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Convertible note | $ 30,000 | ||||||||||||||||||||
| Convertible Notes [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 16,083 | 123,793 | |||||||||||||||||||
| Convertible Notes [Member] | Diagonal Lending [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | 112,000 | 77,000 | |||||||||||||||||||
| King Wharf Opportunities Fund [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 8.00% | ||||||||||||||||||||
| Remaining principal balances | $ 275,000 | ||||||||||||||||||||
| Convertible fixed price (in Dollars per share) | $ 0.0001 | ||||||||||||||||||||
| Kings Wharf [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | 46,900 | 42,200 | |||||||||||||||||||
| Original issue discount | $ 25,000 | ||||||||||||||||||||
| Diagonal Lending [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 10.00% | 10.00% | 10.00% | ||||||||||||||||||
| Remaining principal balances | $ 40,000 | $ 35,000 | 40,000 | 40,000 | |||||||||||||||||
| Convertible price (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||
| Diagonal Lending One [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | 35,000 | 0 | |||||||||||||||||||
| Trillium Partners, LP [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | |||||||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Original issue discount | $ 25,000 | $ 7,000 | |||||||||||||||||||
| Convertible price (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||
| Interest rate | 8.00% | ||||||||||||||||||||
| Trillium Partners, LP [Member] | Two Convertible Notes [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 10.00% | ||||||||||||||||||||
| Remaining principal balances | $ 44,000 | ||||||||||||||||||||
| Convertible fixed price (in Dollars per share) | $ 0.0001 | ||||||||||||||||||||
| Trillium Partners, LP [Member] | Several Convertible Notes [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 332,800 | ||||||||||||||||||||
| Trillium Partners, LP [Member] | Minimum [Member] | Several Convertible Notes [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 10.00% | ||||||||||||||||||||
| Convertible price (in Dollars per share) | $ 0.0001 | ||||||||||||||||||||
| Trillium Partners, LP [Member] | Maximum [Member] | Several Convertible Notes [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 12.00% | ||||||||||||||||||||
| Convertible price (in Dollars per share) | $ 0.0002 | ||||||||||||||||||||
| Trillium Partners, LP One [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | |||||||||||||||||||||
| Trillium Partners, LP Two [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | 62,000 | 0 | |||||||||||||||||||
| Convertible Notes Payable [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | 62,000 | 0 | |||||||||||||||||||
| Matterhorn Partners LLC [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 12,000 | $ 25,000 | $ 0 | 12,000 | 8,454 | ||||||||||||||||
| Percentage of lowest close bid price | 50.00% | ||||||||||||||||||||
| Original issue discount | $ 2,000 | $ 4,000 | |||||||||||||||||||
| Interest rate | 10.00% | 12.00% | |||||||||||||||||||
| Travel Data Solutions [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | 125,000 | ||||||||||||||||||||
| Interest rate | 10.00% | ||||||||||||||||||||
| Proceeds from Convertible Debt | $ 25,000 | ||||||||||||||||||||
| Received proceeds amount | $ 75,000 | $ 75,000 | |||||||||||||||||||
| Travel Data Solutions [Member] | Convertible Promissory Note [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 25,000 | ||||||||||||||||||||
| Travere Opportunity Fund [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Remaining principal balances | $ 12,000 | $ 12,000 | 0 | ||||||||||||||||||
| Original issue discount | $ 2,000 | ||||||||||||||||||||
| Interest rate | 10.00% | ||||||||||||||||||||
| Third Party [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Bearing interest rate | 10.00% | ||||||||||||||||||||
| Remaining principal balances | $ 40,099 | $ 230,232 | |||||||||||||||||||
| Convertible promissory note issued | 84,681 | ||||||||||||||||||||
| Convertible promissory note to a third party in exchange | $ 84,681 | ||||||||||||||||||||
| Public market price percentage | 50.00% | ||||||||||||||||||||
| Series G Preferred Stock [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Preferred stock shares (in Shares) | 1,000,000 | 0 | |||||||||||||||||||
| Series G Preferred Stock [Member] | Convertible Notes [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Preferred stock shares (in Shares) | 326,922 | ||||||||||||||||||||
| Series G Preferred Stock [Member] | King Wharf Opportunities Fund [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Preferred stock shares (in Shares) | 326,922 | ||||||||||||||||||||
| Series G Preferred Stock [Member] | Kings Wharf [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Preferred stock shares (in Shares) | 163,461 | ||||||||||||||||||||
| Series G Preferred Stock [Member] | Mr., Aizman and Mr. Lakshin [Member] | |||||||||||||||||||||
| Convertible Notes [Line Items] | |||||||||||||||||||||
| Preferred stock shares (in Shares) | 163,461 | ||||||||||||||||||||
| |||||||||||||||||||||
Convertible Notes (Details) - Schedule of Convertible Notes - USD ($) |
Sep. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | $ 403,083 | $ 646,679 |
| Less: Debt discount | (304,889) | (206,570) |
| Total Convertible notes payable | 98,194 | 440,109 |
| Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 205,684 | |
| Frondeur [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 16,083 | 123,793 |
| Frondeur [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 16,083 | |
| Kings Wharf [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 46,900 | 42,200 |
| Kings Wharf [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | ||
| 1800 Diagonal Lending [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 152,000 | 117,000 |
| 1800 Diagonal Lending [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 40,000 | |
| Trillium [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 124,000 | |
| Trillium [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 124,000 | |
| Matterhorn [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 12,000 | 8,454 |
| Matterhorn [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | ||
| Travel Data Solutions [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 125,000 | |
| Travel Data Solutions [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | ||
| Travere Opportunity Fund [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 12,000 | |
| Travere Opportunity Fund [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | ||
| Third Party [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | 40,099 | $ 230,232 |
| Third Party [Member] | Put Premium On Stock Settled Debt [Member] | ||
| Schedule of Convertible Notes [Line Items] | ||
| Convertible notes | $ 25,601 |
Put Premium on Stock Settled Debt (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Put Premium on Stock Settled Debt [Abstract] | ||||||
| Gain on new methodology for accounting for debt conversion features | $ 0 | $ 27,856 | ||||
Derivative Liabilities (Details) - Schedule of Changes in the Fair Value - USD ($) |
9 Months Ended | 12 Months Ended | |
|---|---|---|---|
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule of Derivative Liability Measured at Fair Value [Abstract] | |||
| Balance beginning | $ 433,818 | $ 2,172,250 | $ 110,992 |
| Change Due to Issuances | (4,035,300) | 2,718,645 | |
| Transfer to put premium | 651,156 | (112,537) | |
| Change in fair value | 130,419 | 1,645,712 | (544,850) |
| Balance ending | $ 564,237 | $ 433,818 | $ 2,172,250 |
Derivative Liabilities (Details) - Schedule of Assumptions Used in the Calculations of its Derivatives |
Sep. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Stock Price [Member] | Minimum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 0.0001 | 0.0001 |
| Stock Price [Member] | Maximum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 0.15 | 0.15 |
| Exercise Price [Member] | Minimum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 0.00003 | 0.00003 |
| Exercise Price [Member] | Maximum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 0.2572 | 0.2572 |
| Contractual Term [Member] | Minimum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 7 | 7 |
| Contractual Term [Member] | Maximum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 0.025 | 0.025 |
| Volatility (Annual) [Member] | Minimum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 174 | 174 |
| Volatility (Annual) [Member] | Maximum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 2,068 | 2,068 |
| Risk-Free Rate [Member] | Minimum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 4.41 | 4.41 |
| Risk-Free Rate [Member] | Maximum [Member] | ||
| Assumptions Used in the Calculations of its Derivatives [Line Items] | ||
| Derivative liabilities | 5.57 | 5.57 |
Related Party Transactions (Details) - USD ($) |
9 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Jul. 08, 2019 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Related Party Transactions [Line Items] | ||||
| Recruitment services | $ 9,693 | $ 38,771 | ||
| Agreement salary | $ 10,000 | |||
| Eddie Aizman [Member] | ||||
| Related Party Transactions [Line Items] | ||||
| Accrued salary | 180,000 | |||
| Salaries | 180,000 | $ 57,205 | ||
| Due to related party | 372,205 | |||
| Michael Lakshin [Member] | ||||
| Related Party Transactions [Line Items] | ||||
| Accrued salary | 200,000 | |||
| Salaries | 200,000 | 63,562 | ||
| Due to related party | 413,562 | |||
| Michael Neece [Member] | ||||
| Related Party Transactions [Line Items] | ||||
| Accrued salary | $ 112,500 | 150,000 | 12,500 | |
| Accrued bonuses | $ 50,000 | $ 4,167 | ||
Common Stock (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|---|
Dec. 16, 2022 |
Sep. 30, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|||
| Common Stock [Line Items] | |||||||
| Common stock authorized | [1] | 40,000,000,000 | 40,000,000,000 | 40,000,000,000 | |||
| Common stock par value (in Dollars per share) | [1] | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
| Extinguishment of convertible debt (in Dollars) | $ 0 | $ 82,937,180 | $ 6,364,768,689 | $ 18,094,721,962 | |||
| Common stock share outstanding | [1] | 136,458,010 | 136,458,010 | 53,520,830 | |||
| Michael R Neece [Member] | |||||||
| Common Stock [Line Items] | |||||||
| Vesting period | 4 years | ||||||
| Per share price (in Dollars per share) | $ 0.0002 | ||||||
| Shares vested | 250,000 | 250,000 | |||||
| Interview Mastery Acquisition [Member] | |||||||
| Common Stock [Line Items] | |||||||
| Common stock share issued | 1,000,000,000 | ||||||
| Common stock value (in Dollars) | $ 200,000 | ||||||
| Interview Mastery Acquisition [Member] | Michael R Neece [Member] | |||||||
| Common Stock [Line Items] | |||||||
| Common stock share issued | 1,000,000,000 | ||||||
| Share Based Compensation Award Tranche Per Quarter [Member] | Michael R Neece [Member] | |||||||
| Common Stock [Line Items] | |||||||
| Vesting in increments | 62,500,000 | ||||||
| Chief Product Officer [Member] | Share Based Compensation Award Tranche One To Four [Member] | Michael R Neece [Member] | |||||||
| Common Stock [Line Items] | |||||||
| Vesting in increments | 250,000,000 | ||||||
| |||||||
Warrants (Details) |
9 Months Ended | |
|---|---|---|
|
Sep. 30, 2024
USD ($)
$ / shares
shares
|
Sep. 30, 2023
USD ($)
|
|
| Warrants [Line Items] | ||
| Aggregate fair value of warrants (in Dollars) | $ | $ 272,834 | $ 149,910 |
| Pre Reverse Split [Member] | ||
| Warrants [Line Items] | ||
| Warrants issued (in Shares) | 38,650,000 | |
| Purchase of warrants (in Shares) | 38,650,000 | |
| Post Reverse Split [Member] | ||
| Warrants [Line Items] | ||
| Purchase of warrants (in Shares) | 150,000 | |
| Warrant [Member] | ||
| Warrants [Line Items] | ||
| Exercise price per share (in Dollars per share) | $ / shares | $ 0.0001 | |
| Warrant expiry term | 5 years | |
| Aggregate fair value of warrants (in Dollars) | $ | $ 596,927 | |
| Maximum [Member] | ||
| Warrants [Line Items] | ||
| Exercise price per share (in Dollars per share) | $ / shares | $ 0.025 | |
| Warrant expiry term | 7 years | |
| Maximum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 0.0025 | |
| Minimum [Member] | ||
| Warrants [Line Items] | ||
| Exercise price per share (in Dollars per share) | $ / shares | $ 0.001 | |
| Warrant expiry term | 5 years | |
| Minimum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 0.00025 | |
| Common Stock [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Purchase of warrants (in Shares) | 150,000 | |
| Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 4.28 | |
| Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 2.5 | |
| Measurement Input, Price Volatility [Member] | Maximum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 699.48 | |
| Measurement Input, Price Volatility [Member] | Minimum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 266.74 | |
| Expected Life [Member] | Maximum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 7 | |
| Expected Life [Member] | Minimum [Member] | Warrant [Member] | ||
| Warrants [Line Items] | ||
| Warrant measurement input | 5 | |
Warrants (Details) - Schedule of Outstanding Stock Warrants - Warrant [Member] - $ / shares |
9 Months Ended | 12 Months Ended |
|---|---|---|
Sep. 30, 2024 |
Dec. 31, 2023 |
|
| Class of Warrant or Right [Line Items] | ||
| Shares available to purchase with warrants, beginning balance | 38,650,000 | |
| Weighted Average Price, beginning balance | $ 0.001 | |
| Weighted Average Remaining life, beginning balance | 6 years 2 months 8 days | 6 years 6 months 14 days |
| Shares available to purchase with warrants, Issued | 39,150,000 | |
| Weighted Average Price, Issued | $ 0.001 | |
| Weighted Average Remaining life, Issued | ||
| Shares available to purchase with warrants, Exercised | ||
| Weighted Average Price, Exercised | ||
| Weighted Average Remaining life, Exercised | ||
| Shares available to purchase with warrants, Forfeited | ||
| Weighted Average Price, Forfeited | ||
| Weighted Average Remaining life, Forfeited | ||
| Shares available to purchase with warrants, Expired | ||
| Weighted Average Price, Expired | ||
| Weighted Average Remaining life, Expired | ||
| Shares available to purchase with warrants, ending balance | 77,800,000 | |
| Weighted Average Price, ending balance | $ 0.001 | |
| Weighted Average Remaining life, ending balance | 6 years 2 months 8 days | 6 years 6 months 14 days |
| Shares available to purchase with warrants, Exercisable | 77,800,000 | |
| Weighted Average Price, Exercisable | $ 0.001 | |
| Weighted Average Remaining life, Exercisable | 6 years 2 months 8 days |
Warrants (Details) - Schedule of Significant to Fair Value Measurement |
9 Months Ended |
|---|---|
|
Sep. 30, 2024
$ / shares
shares
| |
| Class of Warrant or Right [Line Items] | |
| Range of Exercise Prices, Minimum | $ 0.025 |
| Range of Exercise Prices, Maximum | $ 0.001 |
| Number Outstanding (in Shares) | shares | 77,800,000 |
| Weighted Average Remaining Contractual Life | 6 years 2 months 8 days |
| Weighted Average Exercise Price | $ 0.0001 |
Preferred Stock (Details) - $ / shares |
9 Months Ended | |||
|---|---|---|---|---|
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Nov. 18, 2021 |
|
| Series AA and Super Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.001 | |||
| Series A Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 1 | |||
| Series B Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 1 | |||
| Series C Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 1 | |||
| Series D Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Paid in cash, percentage | 140.00% | |||
| Liquidation rights (in Dollars per share) | $ 2 | |||
| Percentage of cumulative dividends | 8.00% | |||
| Series E Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Paid in cash, percentage | 22.00% | |||
| Percentage of cumulative dividends | 12.00% | |||
| Stated value (in Dollars per share) | $ 1 | |||
| Percentage of conversion price | 61.00% | |||
| Preferred stock redemption, percentge | 5.00% | |||
| Series E Convertible Preferred Stock [Member] | Minimum [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock redemption, percentge | 120.00% | |||
| Series E Convertible Preferred Stock [Member] | Maximum [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock redemption, percentge | 145.00% | |||
| Series F Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.001 | |||
| Conversion rate | 1 | |||
| Series G Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Percentage of issued and outstanding | 78.00% | |||
| Series G Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 1,000,000 | 0 | ||
| Preferred stock, shares outstanding | 1,000,000 | 0 | ||
| Series AA Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
| Preferred stock, shares issued | 0 | 652,259 | ||
| Preferred stock, shares outstanding | 0 | 652,259 | ||
| Common Stock [Member] | Series AA and Super Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 1 | |||
| Common Stock [Member] | Series A Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 10 | |||
| Common Stock [Member] | Series B Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 4,000 | |||
| Common Stock [Member] | Series C Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 400 | |||
| Common Stock [Member] | Series F Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 93,761,718 | |||
| Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 50 | |||
| Preferred stock, shares issued | 500 | |||
| Preferred Stock [Member] | Series AA and Super Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Conversion rate | 1 | |||
| Preferred stock, shares issued | 0 | 0 | ||
| Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.01 | |||
| Voting rights | 10 | |||
| Liquidation rights (in Dollars per share) | $ 2 | |||
| Preferred stock, shares outstanding | 3,381,520 | 3,381,520 | ||
| Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.01 | |||
| Voting rights | 4,000 | |||
| Liquidation rights (in Dollars per share) | $ 0.01 | |||
| Preferred stock, shares outstanding | 5,000 | 5,000 | ||
| Preferred Stock [Member] | Series C Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.01 | |||
| Voting rights | 400 | |||
| Liquidation rights (in Dollars per share) | $ 0.01 | |||
| Preferred stock, shares outstanding | 5,000,000 | 5,000,000 | ||
| Preferred Stock [Member] | Series D Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.0001 | |||
| Preferred stock, shares outstanding | 125,000 | 125,000 | ||
| Conversion price of per share (in Dollars per share) | $ 0.0015 | |||
| Preferred Stock [Member] | Series E Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.001 | |||
| Preferred Stock [Member] | Series F Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, shares issued | 0 | 0 | ||
| Voting rights | 93,761,718 | |||
| Preferred Stock [Member] | Series G Convertible Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.001 | |||
| Preferred stock, shares issued | 1,000,000 | 1,000,000 | ||
| Convertible preferred stock shares issued | 1,000,000 | |||
| Preferred Stock [Member] | Series G Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, par value (in Dollars per share) | $ 0.001 | |||
| Percentage of dividend | 6.00% | |||
| Preferred Stock [Member] | Series AA Preferred Stock [Member] | ||||
| Preferred Stock [Line Items] | ||||
| Preferred stock, shares issued | 652,259 |
Commitments and Contingencies (Details) - USD ($) |
9 Months Ended | |
|---|---|---|
Feb. 13, 2017 |
Sep. 30, 2024 |
|
| Commitments and Contingencies [Abstract] | ||
| Increased decrease indebtedness | $ 1,200,000 | |
| Judgment against the company amount | $ 27,084 |
Income Tax (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
Mar. 27, 2020 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2020 |
|
| Income Tax [Line Items] | ||||||||
| Income tax expense | ||||||||
| Net operating loss carry forwards | 12,992,877 | 9,243,925 | ||||||
| Current year income percentage | 80.00% | |||||||
| Percentage of minimum change in ownership | 50.00% | |||||||
| Relief package amount | $ 2,000,000,000,000 | |||||||
| Net increase in valuation allowance | $ 710,315 | $ 1,777,000 | ||||||
| CARES Act [Member] | ||||||||
| Income Tax [Line Items] | ||||||||
| Received amount | $ 91,035 | |||||||
| Tax Year Expirable2036 [Member] | ||||||||
| Income Tax [Line Items] | ||||||||
| Net operating loss carry forwards | 1,696,000 | $ 1,696,000 | ||||||
| Not Expire [Member] | ||||||||
| Income Tax [Line Items] | ||||||||
| Net operating loss carry forwards | $ 5,920,000 | $ 5,920,000 | ||||||
Income Tax (Details) - Schedule of Tax Effects of Temporary Differences to Deferred Tax Assets (Liabilities) - USD ($) |
Dec. 31, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Deferred tax assets / (liabilities) | ||
| Net operating loss carry forward | $ 3,361,000 | $ 2,923,000 |
| Stock-based compensation | 517,618 | 245,000 |
| Accrued expenses | 192,697 | 193,000 |
| Net deferred tax assets | 4,071,315 | 3,361,000 |
| Valuation allowance | (4,071,315) | (3,361,000) |
| Net deferred tax assets, net of valuation allowance |
Income Tax (Details) - Schedule of Statutory Federal Income Tax Effective Income Tax Rate |
12 Months Ended | |
|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| Schedule of Statutory Federal Income Tax Effective Income Tax Rate [Abstract] | ||
| Statutory federal income tax rate | 21.00% | 21.00% |
| State tax, net of federal benefit | 15.29% | 15.29% |
| Permanent differences | 2.50% | 2.50% |
| Valuation allowance | (38.79%) | (38.79%) |
| Effective rate | ||
1 Year bowmo (PK) Chart |
1 Month bowmo (PK) Chart |
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