v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)
 3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Schedule of Useful Lives for Property and Equipment

Maintenance and repairs are charged to operations as incurred. Depreciation of property and equipment is computed by the straight-line method (after taking into account their respective estimated residual values shown in the table below) over the estimated useful lives of the respective assets.

Fixed Asset   Estimated Useful Life (Years)
Building   39
Improvements   5
Furniture and office equipment   5
Computer Equipment   5
Vehicles   5
Schedule of Retirement of Property and Equipment

During the three months ended March 31, 2019 and 2018, the Company purchased $103,805 and $0, respectively, of fixed assets, wrote off $0 and $498, respectively, of fixed assets, and recorded $28,465 and $0, respectively, of depreciation expense, resulting in net fixed assets of $1,483,830 and $1,408,490 at March 31, 2019 and December 31, 2018, respectively, as follows:

Description  Total Acquisition Cost  Span of Life (years)  Accum Dep December 31, 2018  Dep Exp 2019 Q1  Net Value March 31, 2019
Computer Equipment  $8,840    5   $543   $436   $7,861 
Improvements   184,167    5    11,676    9,082    163,409 
Office Equipment & Furniture   2,399    5    90    118    2,191 
Pods   95,046    5    5,289    4,687    85,070 
Real Estate - Land   102,218    —      —      —      102,218 
Real Estate - Building   982,682    39    968    6,203    975,511 
Vehicle   56,435    5    4,731    2,783    48,921 
Sub-Total   1,431,787         23,297    23,309    1,385,181 
Assets Acquisitions 2019 Q1                         
Computer Equipment   150    5    —      44    106 
Improvements   12,222    5    —      603    11,619 
Office Equipment & Furniture   483    5    —      24    459 
Pods   90,950    5    —      4,485    86,465 
Total 2019 Q1   103,805         —      5,156    98,649 
Grand Total  $1,535,592        $23,297   $28,465   $1,483,830
Schedule of Fair Value of Financial Instruments

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2018 and March 31, 2019:

  

   Level 1  Level 2  Level 3  Total
Derivative Liability                    
December 31, 2018  $—     $—     $2,296,080   $2,296,080 
March 31, 2019            $1,559,814   $1,559,814 

 

The Company reflects the fair value for liabilities using the Black Scholes pricing model. The following chart discloses the estimated fair values for the Company’s derivative financial instruments based on the parameters disclosed in our Notes 5 and 6 hereto:

Derivative Liability Reconciliation  March 31, 2019  December 31, 2018
 Balance beginning of the period  $2,296,080   $4,454,993 
 Derivative liability additions associated with convertible debt   1,958,416    5,840,449 
 Derivative liability reductions due to conversions or settlement of underlying debt   (2,276,018)   560,945 
 Change in Fair Value   (418,664)   (8,560,307)
 Ending Balance  $1,559,814   $2,296,080
Schedule of Computation of Basic and Diluted Earnings Per Share

The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share.

 

   Three Months Ended March 31,
   2019  2018
Numerator          
Net income (loss) applicable to common shareholders  $(1,396,731)  $3,989,500 
           
Denominator          
Weighted average common shares outstanding, basic   124,136,135    24,817,133 
Convertible preferred stock   803,000,000    963,000,000 
Convertible promissory notes   16,971,487    3,516,203 
Weighted average common shares outstanding, diluted   124,136,135    991,333,336 
Net Income per share - Basic  $(0.01)  $0.16 
Income per shares - Diluted  $(0.01)  $0.00