Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. GLOBAL TECH INDUSTRIES GROUP, INC. (356590) 10-Q published on Aug 14, 2020 at 2:36 pm
Accrued wages
The Company does not have sufficient operations and funds to pay its officers their wages in cash, therefore all wages have been accrued for the three and six months ended June 30, 2020 and 2019. The accrued wages for the three months ended June 30, 2020 and 2019 are $170,000, respectively, and the accrued wages for the six months ended June 30, 2020 and 2019 are $340,000, respectively. The balance of accrued wages due to the officers at June 30, 2020 and December 31, 2019, are $340,000 and $0, respectively.
On May 18, 2020, the Company cancelled the 4,668,530 shares issued to the shareholders of ARUR, pursuant to the Chautauqua County Court Kansas decision nullifying the acquisition Agreement of ARUR (see legal actions). These shares were cancelled and returned to Treasury.
On December 30, 2016, the Company executed a stock purchase agreement (the “Agreement”), which was signed and closed in Hong Kong, with GoFun Group, Ltd. through its wholly owned subsidiary Go F & B Holdings, Ltd. GoFun Group, Ltd. is a privately held company running a casual dining restaurant business, based in Hong Kong. Subsequent to the agreement being signed, GoFun Group failed to substantially perform under the agreement, including, but not limited to providing audited financials of its assets, making the ongoing payments called for in the agreement, along with other matters that led Global Tech to initiate litigation in the United States. Currently, Global Tech and GoFun are litigating the matter in the U.S District Court for the southern district of New York. The original acquisition agreement and rescission was recorded on the Company’s books in 2016, however the physical share certificates were not returned to the Company. During the fourth quarter of 2019, the Company was able to secure, via preliminary settlement, the return of 43,649,491 shares of the Company’s stock, which was issued in good faith to GoFun in anticipation of a final stock exchange. The stock was returned to the Company’s treasury and cancelled.
Our net loss decreased by $129,611 from $(767,095) in 2019 to a loss of $(637,484) in 2020. The primary reason for this decrease was the significant decrease in travel and general and administrative expenses due to the Coronavirus pandemic. There was also an increase in interest expense due to the new notes to the officers, and less gains from securities values. We expect that our losses will continue until we are able to establish a consistent revenue source and finalize our projected acquisition. Management and the Board are considering multiple options currently available.
At June 30, 2020 we had cash on hand of $1,363 compared to $1,435 at December 31, 2019. Cash used by our operations of $(90,015) in 2020 compared to cash used of $(23,641) in 2019. Our operations are supported by our CEO who uses individual credit to pay for expenses of the Company. In the first six months of 2020 our CEO advance $89,943 as compared to a net cash advance of $19,642 during 2019. We anticipate that we will continue to have a negative cash flow from operations for 2020. We do not have sufficient cash on hand at June 30, 2020 to cover our negative cash flow. We will attempt to raise capital through the sale of our common stock or through debt financing, or engaging in other operations.