Accounts Payable and Accrued Liabilities

9 Months Ended

Sep. 30, 2019

Accounts Payable and Accrued Liabilities

Note 6 – Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities at September 30, 2019 and December 31, 2018 consisted of the following:

	September 30, 2019		December 31, 2018

Accounts payable	$	308,230	$	379,448
Accrued expenses		452,838		495,785
Accrued salaries		6,753		206,031
Accrued board of director fees		-		74,295
Accrued interest		156,631		79,153
	$	924,452	$	1,234,712

During the three months ended September 30, 2019, some accounts payable and accrued expenses were exchanged for Series A Preferred shares. The majority of which represented professional consulting fees of approximately $161,221 and board of director fees of approximately $264,616. See Note 10 Series A Preferred Stock for further details.

In addition, as detailed in Note 3, on September 30, 2019 the Company effectively foreclosed on its liens taking possession of the assets including the brands; Lexi-Luu, Emotion Apparel, Inc., Punkz Gear and retuned the stock in Emotion Apparel, Inc. and its subsidiaries to the Seller. As a result, the related accounts payable and accrued expenses which were payable by Emotion Apparel, Inc. which totaled $511,486 including $250,000 Note Payable, were offset to other income. For further details See Note 9 Notes Payable for further details.

Also 12 Europe, on August 20, 2019, the Company had successfully discharged all of its debts associated with 12 Europe A.G., as part of the completion of the 12 Europe A.G., bankruptcy filing except for certain social benefit payments still owed by the Company. As a result of filing for bankruptcy, all the companies have been discharged and are no longer owed by the Company with the exception of approximately $35K in social benefits liabilities. As such the total discharged accounts payable totaled $445,244 and were offset to other income.

Lastly, after careful review by management, certain invoices posted to accounts payable were deemed to not be owed by the Company. These payables totaled approximately $68K were offset to other income.

See further discussion as part of the Management Discussion and Analysis below.