Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

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

For the transition period from __________ to __________

Commission File Number: 000-52047

AUTHENTIC HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Nevada		11-3746201
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

50 Division Street Somerset NJ 08873

(Address of principal executive offices)

(732) 695-4389

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ ☐ No ☐

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act: None

As of August 14, 2023, there were 1,978,087,926 shares outstanding of the registrant’s common stock.

AUTHENTIC HOLDINGS, INC.

TABLE OF CONTENTS

		Page No.
PART I. FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022	3
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Deficit for the Three and Six Months Ended June 30, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (unaudited)	6
	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	21
Item 4.	Controls and Procedures	21

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	23
Item 4.	Mine Safety Disclosures	23
Item 5.	Other Information	23
Item 6.	Exhibits	24

Signatures		25

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

AUTHENTIC HOLDINGS INC.

Condensed Consolidated Balance Sheets

As of June 30, 2023 and December 31, 2022

	June 30, 2023			December 31, 2022
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	9,825		$	-
Prepaid interest and deposits		-			-
Advances		450,000		$	625,000
Total Current Assets		459,825			625,000

Property and equipment, net of depreciation		45,968			68,206
Intangible assets		17,756			18,473

TOTAL ASSETS	$	523,549		$	711,679
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Bank overdraft		-			306
Accounts payable and accrued liabilities		226,895			234,641
Accrued compensation		501,250			501,250
Unsecured notes and accrued interest payable		306,303			250,464
Convertible notes and accrued interest - net of debt discount of $92,000 and $155,641 respectively.		1,037,218			1,243,243
Convertible notes and accrued interest - related party		84,568			82,568
Promissory Notes and Accrued Interest		40,000
Promissory note and accrued interest - related party		502,093			495,308
Derivative liabilities		1,310,008			1,608,485
Advances from related parties		417,054			383,686
Related party loans and accrued interest		264,050			263,529
Self Liquidating Promissory Notes		168,750			165,000
Total Current Liabilities		4,858,189			5,228,480
Stockholders’ Deficit
Preferred stock, Series B, $0.001 par value, 400,000 shares authorized, 200,000 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.		200			200
Preferred stock, Series D, $0.001 par value, 100,000 shares authorized and 0 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.
Common stock $0.001 par value, 2,500,000,000 shares authorized, 1,875,685,127 and 1,557,397,662 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.		1,875,684			1,557,397
Additional paid-in capital		30,397,322			30,305,914
Accumulated deficit		(36,607,845	)		(36,380,313	)
Stockholders' deficit		(4,334,640	)		(4,516,802	)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	523,549		$	711,679

The accompanying notes are an integral part of these condensed consolidated financial statements.

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AUTHENTIC HOLDINGS INC.

Condensed Consolidated Statement of Operations

For the Three and Six Months Ended June 30, 2023 and 2022

	Three months ended June 30,						Six months ended June 30,
	(Unaudited)						(Unaudited)
	2023			2022			2023			2022
REVENUE	$	-		$	-		$	-		$	-
COST OF REVENUES		-			-			-			-
GROSS PROFIT (LOSS)		-			-			-			-
OPERATING EXPENSES
General and administrative		16,342			30,081			71,643			52,281
Depreciation and Amortization		11,450			29,485			22,953			58,970
Professional and Legal Fees		69,039			19,099			90,698			51,349
Officer salaries and compensation		-			-			-			-
Stock based compensation		-			-			-			-
Research and Development		15,545			-			41,850			-
Total Operating Expenses	$	112,376		$	78,665			227,144			162,600

LOSS FROM OPERATIONS		(112,376	)		(78,665	)		(227,144	)		(162,600	)

OTHER INCOME (EXPENSE)
(Income) Loss on change in fair value of derivative liabilities		(1,261,330	)		(91,254	)		(214,483	)		478,754
Gain from extinguishment of debt		-			-			-			15,856
Interest expense and financing costs		38,173			(19,601	)		75,763			(35,102	)
(Income) Loss on Joint Venture		50,000						50,000
Interest expense - related parties		(4,184	)		(7,433	)		5,874			(102,834	)
Other expense		19,800			(3,750	)		83,235			(3,750	)

Total other expense		(1,157,541	)		(122,038	)		389			352,924

NET Income (Loss)		(1,045,165	)		(200,703	)		(227,532	)		190,324

Net loss per share	$	(0.0005	)	$	(0.0001	)	$	(0.00001	)	$	0.0002

Weighted average common shares outstanding		1,792,805,853			1,452,110,332			1,741,057,770			1,253,569,254

The accompanying notes are an integral part of these condensed consolidated financial statements.

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AUTHENTIC HOLDINGS INC.

Condensed Consolidated Statement of Stockholders' Deficit

For the Three and Six Months Ended June 30 , 2023 and 2022

										Additional					Total
	Series B Preferred Stock				Common Stock					Paid-in		Accumulated			Stockholders'
	Shares		Amount		Shares			Amount		Capital		Deficit			Deficiency

Balance December 31, 2021		200,000	$	200		1,450,210,322		$	1,450,210	$	30,092,729		(35,222,530	)	$	(3,679,391	)
Issuance of shares for conversion of notes						15,638,695			15,638		46,769					62,407
Stock issued for cash																-
Stock warrants issued for cash											60,000					60,000
Net income (loss)													391,027			391,027
Balance March 31, 2022		200,000	$	200		1,465,849,017		$	1,465,848	$	30,199,498	$	(34,831,503	)	$	(3,165,957	)
Issuance of shares for conversion shares						39,582,832			39,583		60,417					100,000
Net Income (Loss)													(200,703	)		(200,703	)
Balance June 30, 2022		200,000	$	200		1,505,431,849			1,505,431	$	30,259,915	$	(35,032,206	)	$	(3,266,660	)

Balance December 31, 2022		200,000	$	200		1,557,397,662		$	1,557,397		30,305,914		(36,380,313	)		(4,516,802	)
Isusance of shares for conversion of notes																-
Stock issued for cash						15,555,556			15,556		19,445					35,001
Adjustment shares issued						139,630,947			-		-		-			-
Net income (loss)													(1,209,261	)		(1,209,261	)
Balance March 31, 2023		200,000	$	200		1,712,584,165		$	1,572,953	$	30,325,359	$	(37,589,574	)	$	(5,691,062	)
Adjustment shares issued						(139,630,947	)
Issuance of shares for conversion of notes						302,731,907			302,731		71,695					374,697
Net Income (Loss)													(227,532	)		(227,532	)
Balance June 30, 2023		200,000	$	200		1,875,685,125		$	1,875,684	$	30,397,322	$	(36,607,845	)	$	(4,334,640	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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AUTHENTIC HOLDINGS INC.

Condensed Consolidated Statement of Cash Flows

For the Six Months Ended June 30, 2023 and 2022

	2023			2022

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (income)	$	(227,532	)	$	190,324
Adjustments to reconcile net income (loss) to net cash from operating activities:
Change in fair value of derivative liabilities		(298,477	)		(478,754	)
Extinguishment of derivative liabilities
Conversion of notes payable to equity					7,186
Depreciation – Property and equipment		22,954			24,972
Amortization – Intangible assets					33,998
Changes in operating assets and liabilities:
Bank Indebtedness					(2,455	)
Expense paid for subsidiary
Inventory
Advances to joint venture		175,000
Prepaid interest and deposits
Expenses paid for subsidiary					(325,000	)
Accounts payable and accrued expenses		(8,052	)		(37,711	)
Accrued interest					113,647
Net cash used in operating activities	$	(336,107	)	$	(473,793	)

CASH FLOWS FROM INVESTING ACTIVITIES
Advances from related party		-
Acquisition of equipment					(4,022	)
Net cash used in investing activities		-			(4,022	)

CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	$	33,888		$	33,439
Proceeds from stock warrants					60,000
Proceeds form promissory notes		46,785
Proceeds from issuance of common stock		409,696
Proceeds from unsecured loans		55,839			-
Proceeds from Self Liquidating notes		3,750			55,221
Net proceeds from convertible notes		(204,025)			354,777
Net cash provided by financing activities	$	345,933		$	503,437

Net change in cash and cash equivalents		9,825			25,622
Cash and cash equivalents – beginning of period					-
Cash and cash equivalents – end of period	$	9,825		$	25,622

Supplemental Cash Flow Disclosures
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

Non-Cash Investing and Financing Activity:
Shares issued for convertible notes settlement	$	374,696.95		$	78,263

The accompanying notes are an integral part of these condensed consolidated financial statements.

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AUTHENTIC HOLDINGS INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

NOTE 1 – DESCRIPTION OF BUSINESS AND GOING CONCERN

Authentic Holdings Inc. (formerly Global Fiber Technologies, Inc.) was incorporated in Nevada on March 25, 2005 as “Premier Publishing Group, Inc.” Originally formed as a publishing company, the Company ceased its publishing operations in or around 2007.

After ceasing the publishing operations, the Company's operations consisted solely of utilizing the expertise of its board Members and outside agents to further the efforts of its advisory services business plan through a wholly owned subsidiary known as Trident Merchant Group, Inc. On April 20, 2011 the Company filed an amendment with the Nevada Secretary of State for a name change to Premiere Opportunities Group, Inc. which became official on June 29, 2011.

During the fourth quarter of 2013, the Company became involved in the manufacturing and global distribution of ladies’ apparel. However, in 2014 the Company stopped developing a footprint in the apparel business due to cash restraints and logistics and ceased agreements with all third parties. On August 4, 2014, the Company filed an amendment to the articles of incorporation to change the name of the Company to Global Fashion Technologies, Inc.

On January 11, 2017 the Company filed an amendment to change the name of the Company to Eco Tek 360, Inc. In November 2018, the Company created a new subsidiary, Fiber Chain, Inc., for the purpose of operating as an intermediary providing an expedited trading platform for buyers and sellers to efficiently consummate fiber transactions. The Company owns 51% of ECO CHAIN 360, Inc. ECO CHAIN 360, Inc. has had no operations to date nor did it have assets or liabilities as of March 31, 2023 or 2022.

On April 18, 2019, the Company filed an amendment to change the name of the Company to Global Fiber Technologies, Inc.

On June 18, 2019, the Company completed its acquisition of assets from AH Originals, Inc. (“AHO”), a corporation controlled by the same owner group of Global Fiber Technologies, Inc., for the consideration of 6,400,000 shares of common stock of the Company to be issued and the issuance of a promissory note of $447,150 that bears 3% interest per annum and has a one-year term with eight options to extend the maturity date for three-month periods. In addition, the Company issued to AHO 200,000 common shares of Authentic Heroes, Inc. (“AHI”), a subsidiary created by the Company, to hold the purchased assets. AHI has commenced minimal operations.

The Company’s business plan is to operate three separate subsidiaries. Authentic Heroes is a company with proprietary know how and patented technology that is currently operating in the memorabilia industry. It has licenses with Universal Music Group artists RUN DMC, YUNGBLUD and is in discussions with several other music artists. Ecotek360 is a fiber rejuvenation technology company. It plans on offering branded fabrics, apparel and uniforms to the corporate, hotel, hospital and military markets and is still in the development stage but running testing in the joint venture with Fiber Conversion Inc a joint development partner in Broadalbin NY. Fiber Chain, Inc. is still in the development stage and its business plan is to operate as an intermediary providing an expedited trading platform for buyers and sellers to efficiently consummate fiber transactions.

On April 26, 2023, the Company entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Maybacks Global Entertainment LLC, an Arizona limited liability company (“Maybacks”), and the members of Maybacks. As a result of the transaction, Maybacks became a wholly-owned subsidiary of the Company. In accordance with the terms of the Purchase Agreement, at the closing an aggregate of 100,000 shares of the Company’s newly created Series C Preferred Stock were issued to the holders of Maybacks in exchange for their membership interests of Maybacks.

The Purchase Agreement includes a funding obligation, which requires the Company to provide capital to fund the monthly expenses of Maybacks.

On June 20, 2023, the Company closed an Asset Purchase Agreement (the “Asset Agreement”) with Goliath Motion Picture Promotions owned by Priscella Cooper (the “Seller”). On the Closing Date, pursuant to the Asset Agreement, the Company acquired various full-length motion pictures and serial television shows (the “Assets”). In exchange for the Assets, the Company issued to the Seller 100,000 shares of the Company’s Series D Preferred Stock, par value $0.001 with state value of $50 per share.

Management plans to raise additional debt or equity and continue to settle obligations by issuing stock, as well as grow other debt and equity until the Company generates positive cash flow from an operating company. However, the Company’s financial statements show an accumulated deficit of $37.7 million as of June 30, 2023, with a net working capital deficit of $5.6 million and limited cash resources. These factors raise doubts about the Company’s ability to continue as a going concern within the next year.

The Company's ability to continue as a going concern depends on its ability to repay or settle its current indebtedness, generate positive cash flow, and raise capital through equity and debt financing or other means on favorable terms. If the Company cannot obtain additional funds when required or on favorable terms, management may be necessary to restructure the Company or cease operations.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The Company’s consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in U.S. dollars. The Company uses the accrual basis of accounting and has adopted a December 31 fiscal year-end.

Principles of Consolidation

The accompanying consolidated financial statements include all the accounts of the Company and its wholly owned subsidiaries, Trident Merchant Group, Inc. and Progressive Fashions Inc., and its majority-owned subsidiaries, Leading Edge Fashion, LLC, Pure361, LLC and ECO CHAIN 360, Inc., which are 51% owned. All significant intercompany accounts and transactions have been eliminated. As noted in Note 1, our 51% owned subsidiaries, Pure361, Leading Edge Fashions, LLC, and ECO CHAIN 360, Inc., had no operations, assets, or liabilities as of December 31, 2022, and 2021. Because of this, a non-controlling interest is not reflected in these financial statements. In addition, the Company has consolidated Authentic Heroes, Inc., of which the Company owns 80%.

The Company filed articles of Merger with the Secretary of State of Nevada to effectuate a merger with its wholly-owned subsidiary, Authentic Holdings, Inc. Shareholder approval was optional under Section 92A.180 of the Nevada Revised Statutes. As part of the merger, the Company’s board of directors authorized a change in our name to “Authentic Holdings, Inc.” The Company’s Articles of Incorporation have been amended to reflect this name change.

Reclassifications

Specific amounts in the prior period’s financial statements have been reclassified to conform to the current presentation. These reclassifications did not affect the reported consolidated net loss.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and investments in money market funds. The Company considers all highly liquid instruments with an original maturity of 90 days or less at the time of purchase to be cash equivalents.

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Inventories

Inventories are stated at the lower cost (first-in, first-out method) or net realizable value.

On June 30, 2023, and December 31, 2022, the Company had no acquired inventories.

Equipment

Property and equipment are stated at cost. Costs of replacements and significant improvements are capitalized, and maintenance and repairs are charged to operations as incurred. Depreciation expense is provided primarily by the straight-line method over the estimated useful lives of the assets as follows:

Equipment		5 Years
Furniture and Fixtures		7 Years
Forklift		3 Years

	June 30,			December 31,
	2023			2022
Furniture and Equipment	$	215,665		$	215,665
Forklift		20,433			20,433
Camera		4,022			4,022
Trident		733			733
TOTAL Equipment		240,853			240,853
Less accumulated depreciation		(194,885	)		(172,648	)
	$	45,968		$	68,206

Depreciation expenses amounted to $22,236 and $25,636 for the six months ended June 30, 2023 and 2022, respectively.

The long-lived assets of the Company are reviewed for impairment under ASC 360, “Property, Plant and Equipment” (“ASC 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the six months ended June 30, 2023, and 2022, no impairment losses have been identified.

Intangible Assets

The Company accounts for intangible assets (including trademarks and website) under ASC 350 “Intangibles-Goodwill and Other” (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. In addition, ASC 350 requires that goodwill be tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis and between annual tests when circumstances indicate the recoverability of the carrying amount of goodwill may be in doubt. Application of the goodwill impairment test requires judgment, including identifying reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value. Significant judgments required to estimate the fair value of reporting units include assessing future cash flows and determining appropriate discount rates and other assumptions. Changes in these estimates and assumptions or the occurrence of one or more confirming events in future periods could cause the actual results or outcomes to differ from such estimates materially and affect the determination of fair value and goodwill impairment at future reporting dates.

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The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed on a straight-line or accelerated basis over the estimated periods benefited. Patents, technology, and other intangibles with contractual terms are generally amortized over their respective legal or contractual lives. When certain events or changes in operating conditions occur, an impairment assessment is performed, and lives of intangible assets with determinable lives may be adjusted.

We amortize the cost of our intangible assets over the 15-year estimated useful life on a straight-line basis.

The following table sets forth the amortization for the intangible assets on June 30, 2023 and December 31, 2022:

	June 30, 2023			December 31, 2022

Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(189,848	)		(129,623	)
	$	17,756		$	18,473

Amortization expenses amounted to $717 and $664 for the six months ended June 30, 2023 and 2022, respectively.

Prepaid interest and deposits

Interest and deposits include prepaid consulting fees, OTC market annual fees, and license agreements. Prepaid interest is amortized over the life of the related liability.

Revenue Recognition

The Company recognizes revenue from its customer contracts following ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

Revenue related to contracts with customers is evaluated utilizing the following steps:

	1.	Identify the contract, or contracts, with a customer.
	2.	Identify the performance obligations in the contract.
	3.	Determine the transaction price.
	4.	Allocate the transaction price to the performance obligations in the contract.
	5.	Recognize revenue when the Company satisfies a performance obligation.

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Accounts Receivable

Accounts receivables are recorded following ASC 310,” Receivables.” Accounts receivables are recorded at the invoiced amount and do not bear interest. The Company has no amount recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of probable credit losses in its existing accounts receivable. Based on management’s estimate and all charges being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

Leases

Effective October 1, 2019, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), and additional ASUs issued to clarify and update the guidance in ASU 2016-02 (collectively, the “new leases standard”), which modifies lease accounting for lessees to increase transparency and comparability by recording lease assets and liabilities for operating leases and disclosing essential information about leasing arrangements. The Company adopted the new lease standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated for contracts existing at the time of adoption. The Company currently does not have any operating lease over one year term to require accessing (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs.

Income Taxes

Income taxes are accounted for under the asset and liability method stipulated by ASC 740 “Income Taxes.” Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, their respective tax bases and operating loss, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized using a valuation allowance. A valuation allowance is applied when in management's view, it is more likely than not that such deferred tax asset will be unable to be utilized.

The Company adopted specific provisions under ASC Topic 740, which provide interpretative guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Effective with the Company’s adoption of these provisions, interest related to the unrecognized tax benefits is recognized in the financial statements as a component of income taxes.

The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2017 through 2021. In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated. As of June 30, 2023, and December 31, 2022, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities.

Stock-based Compensation

We account for stock-based awards at fair value on the grant date and recognize compensation over the service period they are expected to vest. Using the Black-Scholes option pricing model, we estimate the fair value of stock options and stock purchase warrants. The estimated value of the portion of a stock-based award that is ultimately expected to vest, considering estimated forfeitures, is recognized as expense over the requisite service periods. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of other comparative securities, equal to the weighted average life of the options. The estimate of stock awards that will ultimately vest requires judgment. To the extent that actual forfeitures differ from estimated forfeitures, such differences are accounted for as a cumulative adjustment to compensation expenses and recorded in the period that estimates are revised.

For the six months ended June 30, 2023, and 2022, the Company incurred no stock-based compensation.

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Beneficial Conversion Feature

For conventional convertible debt where the rate of conversion is below market value, the Company records any “beneficial conversion feature” (“BCF”) intrinsic value as additional paid-in capital and related debt discount.

When the Company records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument. The discount is amortized over the life of the debt. If the underlying debt is converted, a proportionate share of the unamortized amounts is immediately expensed.

Debt Issue Costs

The Company may pay debt issue costs in connection with raising funds through the issuance of debt, whether convertible or not, or with other considerations. These costs are recorded as debt discounts and are amortized over the life of the obligation to the statement of operations as amortization of debt discount.

Original Issue Discount

Suppose a debt is issued with an original issue discount. In that case, the original issue discount is recorded as a debt discount, reducing the face amount of the note. It is amortized over the life of the debt to the statement of operations as amortization of debt discount. If the underlying debt is converted, a proportionate share of the unamortized amounts is immediately expensed.

Use of Accounting Estimates

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. Significant items subject to such estimates and assumptions include the valuation of stock-based awards issued and derivatives embedded in financial instruments. Assessments are used to determine depreciation, the valuation of non-cash issuances of common stock, stock options, and warrants, and valuing convertible notes for beneficial conversion features, among others.

Fair Value

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following Six categories:

Level 1—Quoted market prices for identical assets or liabilities in active markets or observable inputs.

Level 2—Significant other observable inputs that observable market data can corroborate; and

Level 3—Significant unobservable inputs that observable market data cannot corroborate.

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The following table summarizes fair value measurements by level on June 30, 2023 and December 31, 2022, measured at fair value on a recurring basis:

December 31, 2022	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,608,485.24	$	1,608,485.24

June 30, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,310,008	$	1,310,008

The concentration of Credit Risk

The carrying value of short-term financial instruments, including cash, restricted cash, trade accounts receivable, accounts payable, accrued expenses, and short-term debt, approximates the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate the market. The Company maintains cash balances at financial institutions insured by the FDIC. On June 30, 2023 and December 31, 2022, the Company had no amounts above the FDIC limit.

New Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 "Debt—Debt with Conversion and Other Options." The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company has adopted this standard and determined no material impact on its financial statements.

NOTE 3 – CAPITAL STOCK

Preferred Stock

Series B Preferred Stock

In September 2014, the Company designated a "Series B Convertible Preferred Stock" (the "Series B Preferred"). The Company had originally allocated 1,000,000 shares to the series, par value $0.001 per share, and features included super voting rights of 10,000 votes per share, non-cumulative dividends at 8% per annum, accrued daily, and a liquidation preference over the common stock, along with other features contained in the Certificate of Designation for the Series B Preferred Stock filed with the State of Nevada.

On June 20, 2023, the Board of Director and the outstanding shareholders of the Series B Preferred Stock consented to amend and restate the Certificate of Designation for the Series B Preferred Stock, to (i) reduce the number of authorized preferred stock designated to the Series B Preferred Stock to 400,000 shares, (ii) revise the liquidation preference of the Series B Preferred Stock from a preferred payout to a parity payout in any liquidation with the common stock and Series C Preferred Stock of the Company, and (iii) to change the language with respect to dividends, such that the Series B Preferred Stock shall have no dividend rights except as may be declared by the Board in its sole and absolute discretion, out of funds legally available for that purpose.

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Series C Preferred Stock

On April 26, 2023, the Board of Directors created, out of the available shares of preferred stock, par value $0.001 per share, a series of preferred stock known as “Series C Preferred Stock” consisting of 100,000 shares.

Under the terms of the Certificate of Designation for the Series C Preferred Stock, the shares shall not accrue nor pay dividends except as declared by the board of directors in its sole discretion. The Series C Preferred Stock shall rank pari passu with the Series B Preferred Stock and common stock in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company.

The outstanding shares of Series C Preferred Stock shall automatically convert into shares of our common stock upon the following to occur:

	•	Upon the two-year anniversary of the filing of the Certificate of Designation with the State of Nevada, 25% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

	•	Upon achievement by Maybacks of reaching 40 channels, 50% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

	•	Upon the achievement by Maybacks of reaching the first $250,000 in “net ad revenue” (post ad agency payout), 2.5% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

	•	After the achievement by Maybacks of reaching the first $250,000 in “net ad revenue” (post ad agency payout), for each successive nine (9) times that Maybacks achieves $250,000 in “net ad revenue” (post ad agency payout), 2.5% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

In the event that the Company goes through a “Change of Control” event, the foregoing milestone achievements above shall be deemed accomplished and all rights to the shares of Common Stock shall immediately vest prior to the close of such Change of Control event.

Series D Preferred Stock

On June 20, 2023, the Board of Directors created, out of the available shares of preferred stock, par value $0.001 per share, a series of preferred stock known as “Series D Preferred Stock” consisting of 100,000 shares.

Under the terms of the Certificate of Designation for the Series D Preferred Stock, the shares shall not accrue nor pay dividends except as declared by the board of directors in its sole discretion. The Series D Preferred Stock shall not have voting rights except as it pertains to altering the rights associated with the Series D Preferred Stock. The Series D Preferred Stock shall have a stated value of $50 per share (the “Stated Value”) and each share shall be entitled to a preference over the common stock, the Series B Preferred Stock, and the Series C Preferred Stock of the Stated Value upon the liquidation, dissolution and winding up of the Company. Each share of Series D Preferred Stock shall be convertible, at any time after three years of issuance or immediately in the event of a change in control at the option of the Holder thereof, into that number of shares of common stock (subject to a beneficial ownership limitation of up to 9.99%) determined by dividing the Stated Value by the Conversion Price, which is closing price of the common stock of the Company on the OTC, on the day immediately prior to the conversion. The Company has the right to redeem the Series D Preferred Stock after five years by making a payment of cash equal to 106% of the sum of an amount equal to the total number of Series D Preferred Stock held by the Holder multiplied by the Stated Value. In the event of a change in control, the company shall redeem the outstanding shares of Series D Preferred Stock by making a payment in cash using the same formula.

Common Stock

As of June 30, 2023, and December 31, 2022, the Company had 1,875,685,127 and 1,557,397,662 shares of its $0.001 par value common stock issued and outstanding, respectively.

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During the six months ended June 30, 2023, the Company issued common shares as follows:

	·	Issued 15,555,556 shares for cash amounting to $35,000; and

	·	Issued 302,731,909 shares for conversion of notes valued at $175,187.

During the six months ended June 30, 2022, the Company had no issuance of shares.

Stock Options

No stock options were issued during the six months ended June 30, 2023, and 2022. All stock options issued previous to 2021 were either exercised or expired.

NOTE 4 – NOTES PAYABLE

Unsecured Notes Payable

On November 25, 2014, the Company issued an unsecured promissory note to an individual in the amount of $100,000 at 10% interest and due on April 1, 2015. On April 1, 2016, the Company entered into a forbearance agreement. The Company was granted an extension of the note through September 30, 2016, in consideration of 150,000 shares of common stock valued at $150,000 with interest accruing after March 29, 2016, at 12%. The lender was issued an additional 50,000 shares valued at $50,000 to extend the note to August 31, 2017. During the year ended December 31, 2019, the Company made a $15,000 repayment. The initial extension fee was amortized ratably over the extension period of 180 days.

The unsecured note and accrued interest were $306,303 as of June 30, 2023 and $250,464 as of December 31, 2022. The note is currently in default.

Convertible Notes Payable

As of June 30, 2023, and December 31, 2022, convertible notes outstanding are $1,022,359 and $1,243,243 respectively.

The following table summarizes the convertible notes included in the balance sheet on June 30, 2023 and December 31, 2022:

	June 30, 2023			December 31, 2022
Principal balances	$	938,330		$	1,180,001
Discount		(87,000	)		(92,000	)
Accrued Interest		(185,888	)		(155,243	)
	$	1,037,218		$	1,243,243

NOTE 5 – DERIVATIVE LIABILITIES

The Company analyzed the conversion option for derivative accounting consideration under ASC 815, "Derivatives and Hedging," and determined that the convertible notes should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company accounts for convertible notes and warrants as a derivative liability due to there being no explicit limit to the number of shares to be delivered upon settlement of all conversion options.

The following table summarizes the derivative liabilities included in the balance sheet at June 30, 2023:

Fair Value Measurements Using Significant Observable Inputs (Level 3)

Balance - December 31, 2022	$	1,608,485
Net Loss (gain) on change in fair value of the derivative		(214,483	)
Adjustment due to conversion of notes		(83,994	)
Balance – June 30, 2023	$	1,310,008

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NOTE 6 – RELATED PARTY TRANSACTIONS

During the six months that ended June 30, 2023, and 2022, net cash proceeds of $33,388 and $33,439, respectively, were received from related parties for operating expenses. Advances from related parties accumulated balances as of June 30, 2023, and December 31, 2022, were $417,054 and $383,686, respectively.

Promissory Notes Payable – related party

On June 18, 2019, the Company issued a promissory note at a principal amount of $447,150 as part of the consideration for the acquisition of assets from AH Originals, Inc., a corporation controlled by the same owner group of Authentic Holdings Inc., formerly Global Fiber Technologies, Inc. The promissory note bears 3% interest per annum and has a one-year term with eight options to extend the maturity date for six-month periods.

Convertible Notes Payable – related party

In August 2015, the Company issued an unsecured promissory note to an investor in the amount of $50,000, convertible to common stock at $1.00 per share. The note bears an interest rate of 8% per annum and matured on August 8, 2016. The note is currently unpaid and in default. The note does not contain a beneficial conversion feature. As of June 30, 2023 the note have an accumulated interest of $32,568.

Related Party Loans

During 2016, the Company received loans from the CEO and board of directors totaling $284,900. In the year ended December 31, 2017, the Company received additional loans from these individuals of $160,650. The loans bear interest at 5% per annum and matured on June 30, 2017, and September 30, 2017. During the year ended December 31, 2017, $241,059 of the notes and interest was converted at approximately $0.19 for 580,000 common shares. The conversion of debt resulted in a gain on extinguishment of debt in the amount of $130,859 in the year ended December 31, 2017.

Balances of all loans due to related parties as of June 30, 2023:

	Principal		Accrued Interest		Total
Promissory note – related party (net of $17,594 discount)	$	429,556	$	72,537	$	502,093
Convertible notes – Related party		50,000		34,568		84,568
Related Party Loans		208,150		55,900		264,050
Total Related Parties Loans		687,706		167,005	$	854,711

NOTE 7 – LEASES

The Company’s right-of-use assets under the operating lease for an office premise had expired on October 1 and the lease was not renewed. There are no lease liabilities balances as of June 30, 2023.

The company currently does not have any long-term operating lease. Our operating lease expenses of $0 for the six months ended June 30, 2023 and $1,601 for the year ended December 31, 2022.

NOTE 8 – COMMITMENTS AND CONTINGENCIES

The Company is a party to six pending litigation matters. The Company does not believe it has any liability, nor has it accrued any liability as of June 30, 2023 and December 31, 2022, for the following:

One matter is entitled Randazzo LLC v. Avani Holdings LLC & Global Fashion Technologies, Inc. The plaintiff initiated this litigation to evict Avani Holdings LLC from its rented premises in California and to recover unpaid rent. The Company does not operate outside the premises and has never signed any leases or other documents with the plaintiff. A judgment of eviction was entered, but the Company does not operate out of the premises in question and therefore did not appear in the matter to oppose the judgment of eviction. The plaintiff is also seeking unpaid rent in the amount of $26,595

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The second matter is entitled Patricia Witthuhn v. Global Fashion Technologies, Inc. The plaintiff initiated this litigation to collect wages allegedly due pursuant to her employment with Avani Holdings LLC. The Company never hired Ms. Witthuhn and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, the Company cannot hire outside counsel for this litigation due to cash flow constraints. The amount being sought by the plaintiff is approximately $15,000.

The third matter is entitled William Corso v. Global Fashion Technologies, Inc. The plaintiff initiated this litigation to collect wages allegedly due pursuant to his employment with Avani Holdings LLC. The Company never hired Mr. Corso and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, the Company cannot hire outside counsel for this litigation due to cash flow constraints. The amount being sought by the plaintiff is approximately $40,000.

NOTE 9 – NET LOSS PER SHARE

Potentially dilutive securities are excluded from the calculation of net loss per share when their effect would be anti-dilutive. For all periods presented in the consolidated financial statements, all potentially dilutive securities have been excluded from the diluted share calculations as they were anti-dilutive as a result of the net losses incurred for the respective periods. Accordingly, basic shares equal diluted shares for all periods presented.

Potentially dilutive securities were comprised of the following:

	June 30, 2023		December 31, 2022
Warrants		11,000,000		11,000,000
Options		2,700,000		2,700,000
Convertible notes payable, including accrued interest		936,887,548		936,887,548
		950,587,548		950,587,548

NOTE 10 – SUBSEQUENT EVENTS

Subsequent to the reporting period, the Company issued 102,402,799 shares for conversion of notes valued at $61,441.

The Company had evaluated subsequent events for recognition and disclosure as of August 21, 2023, when the financial statements were available to be issued. No other matters were identified affecting the accompanying financial statements and related disclosures.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, market acceptance of our products and services, successful training and educational seminars, availability of capital, interest rates, competition, cybersecurity, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further, information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Overview

Authentic Holdings Inc. formerly Global Fiber Technologies, Inc. was incorporated in Nevada on March 25, 2005 as “Premier Publishing Group, Inc.”. Originally formed as a publishing company, the Company ceased its publishing operations in or around 2007.

The Company created subsidiary, ECO CHAIN 360, Inc. in November 2018 for the purpose of operating as an intermediary providing an expedited trading platform for buyers and sellers to efficiently consummate fiber transactions. The Company owns 51% of ECO CHAIN 360, Inc. ECO CHAIN 360, Inc. has had no operations to date nor did it have assets or liabilities as of June 30, 2023 or 2022.

On June 18, 2019, the Company completed its acquisition of assets from AH Originals, Inc. (“AHO”), a corporation controlled by the same owner group of Authentic Holdings Inc. formerly Global Fiber Technologies, Inc. for the consideration of 6,400,000 shares of common stock of the Company to be issued and the issuance of a promissory note of $447,150 that bears 3% interest per annum and has a one-year term with eight options to extend the maturity date for Six-month periods. In addition, the Company issued to AHO 200,000 common shares of Authentic Heroes, Inc. (“AHI”), a subsidiary created by the Company, to hold the purchased assets.

The Authentic Heroes, Inc. subsidiary has patented technology that takes the original event worn apparel from an iconic individual and creates “Fan-wear” collectibles containing fibers from that original. All of the Fan-Wear items have an embedded QR Code that registers the items on our Blockchain for its provenance and immutability.

The Authentic Heroes subsidiary is also in the business of creating vinyl records for distribution into retail department stores and online sales and has pressed 100,000 vinyls to date under the heading of “Old is Gold” Christmas.

The Authentic Heroes subsidiary also has completed an NFT Platform on the Etherium Blockchain capable of housing millions of NFTs. The NFT platform has minted 500,000 NFTs as part of free music NFT given away with its “Old is Gold” Christmas album.

On April 26, 2023, the Company, entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Maybacks Global Entertainment LLC, an Arizona limited liability company (“Maybacks”), and the members of Maybacks. As a result of the transaction, Maybacks became a wholly-owned subsidiary of the Company.

Maybacks is an Over the Air and Platform driven television network with 25 channels of various programs that include movies, sports, talk shows and live events. Many of those programs being proprietary content. Maybacks generates revenue through the placement of insert advertisements, revenue share programs, channel access fees and barter. Maybacks has agreements with “Local Now” Byron Allen’s National Network and several other networks looking to carry Maybacks programing.

Maybacks is looking to capitalize on the “cutting the cord” phenomenon and take advantage of its low operating costs and ability to offer free TV and channel access for established organizations at a fraction of what cable and satellite dish companies charge.

There are many Over the Air and platform driven television networks with greater financial resources and experience in running such as Sling TV which is owned by DISH Network as well as many other independent networks. We will compete with many firms, including corporations with large divisions, many of these companies have great financial, technical or marketing resources, longer operating histories, greater brand recognition or larger customer bases than we do and may be able to respond more effectively to changing business and economic conditions than we can.

As a result of the Asset Agreement and the acquisition of the Assets, the Company plans to “tokenize” all the titles, namely 14,000 plus full-length motion pictures and serial television shows. The Company is currently using the non-tokenized library for content distribution on its own TV Network known as Maybacks. It is the Company’s intention to start the tokenization process within thirty (30) days of this filing and have the “Alpha” version completed within 90 days from its start date. Once the first 1000 movies are tokenized it is the Company’s intention to market those movies on its own Video on Demand and Linear Television platforms. In addition, the Company plans to aggressively market its tokenized platform to other TV networks as well as major film production and distribution companies.

Our address is 50 Division Street Suite 500, Somerset NJ 08873. Our corporate website is http://globalfibertechnologies.com/.

We have never declared bankruptcy or been in receivership. We have earned minimal revenues and have limited cash on hand. We have sustained losses since inception and have primarily relied upon the sale of our securities and loans from related parties for funding.

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Results of Operations for the Six Months Ended June 30, 2023 and 2022.

Below is a summary of the results of operations for the six months ended June 30, 2023 and 2022.

	For the Six months ended June 30,
	2023			2022			Change			%
REVENUE	$	-		$	-			-			-
COST OF REVENUES		-			-
GROSS PROFIT (LOSS)		-			-			-			-

OPERATING EXPENSES		-			-			-
General and administrative		71,643			52,281			19,362			37	%
Depreciation and Amortization		22,953			58,970			(36,017	)		-61	%
Professional and Legal Fees		90,697			51,349			39,348			77	%
Research and Development		41,850			-			41,850			100	%
Total Operating Expenses	$	227,143		$	162,600			64,544			40	%

LOSS FROM OPERATIONS		(227,143	)		(162,600	)		(64,544	)		40	%

OTHER INCOME (EXPENSE)		-			-			-
Income (Loss) on change in fair value of derivative liabilities		(214,483	)		478,754			(693,327	)		145	%
Gain from extinguishment of debt		-			-			(15,856	)		-100	%
(Income) Loss on Joint Venture		50,000						50,000			100	%
Interest expense and financing costs		75,763			(35,102	)		110,865			-316	%
Interest expense - related parties		5,874			(102,834	)		108,708			-105	%
Other Expoenses		83,235			(3,750	)		86,985			-2320	%
Total other income (expense)		389			352,924			(352,535	)		-100	%
NET INCOME (LOSS)	$	(227,532	)	$	190,324		$	(417,857	)		-220	%

Revenue

We had no revenue for the six months ended June 30, 2023, and 2022. We expect that revenue will increase in future quarters as we are currently re-building a more fortified, secure, and user-friendly platform for storing and claiming our future NFTs. We are also building a landing platform on top of our current NFT platform, which will be industry-first. This platform’s purpose is to help NFT investors recapture the losses incurred on certain types of projects. In the process, it will create substantial opportunities for us and give us tremendous credibility in the Blockchain and NFT community. We expect to announce the completion of that project in late June and potentially launch it in late August.

We will also start work shortly on a project which will have its roots in the music industry that will include many artists and will be a game-driven project with prizes awarded at the end of each contest period, which could include free concert tickets, backstage passes, airfare to and from the concert. The future looks bright for our NFT platform, and we fully expect it to become an integral part of our company.

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Operating expenses

Operating expenses increased by 39% in the amount of $64,544 for the six months ended June 30, 2023, compared to the same period in 2022. Listed below are the major changes to operating expenses:

General and administrative expenses increased by$19,362 or 37% for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to an increase in advertising and promotion expenses by $23,041 or 250% compared to the previous year advertising and promotional expenses.

Depreciation and amortization decreased by $36,017 for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to $33,334 amortization of right of use asset as a result of the expiration of long-term lease.

Professional and legal fees increased by $39,348 for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to $19,700 in other consulting fees.

Research and development increased by $41,850, for the six months that ended June 30, 2023, compared to the same period in 2022, primarily due to the development of blockchain built put and NFT platform service product lines during the first quarter of 2023.

Other Income (Expenses)

Other expenses was $389,323 for the six months ended June 30, 2023, compared to other income of $352,924 for the same period in 2022, primarily as a result of the loss in the valuation of derivative liabilities $214,483, and loss in a joint venture of $50,000

Net Loss

We recorded a net loss of $227,532 for the six months ending June 30, 2023, compared with net income of $190,324 for the same period in 2022.

Liquidity and Capital Resources

Since its inception, the Company has financed its operations through private placements and convertible notes. The following is a summary of the cash and cash equivalents as of June 30, 2023 and December 31, 2022.

June 30,

2023

December 31,

2022

$ Change

% Change

Cash and cash equivalents

9,824

100

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Summary of Cash Flows

Below is a summary of the Company’s cash flows for the six months ended June 30, 2023, and 2022.

	For the Six Months Ended June 30,
	2023			2022
Net cash provided (used) in operating activities	$	(336,107	)	$	(473,793	)
Net cash provided by (used in) investing activities		-			4,022
Net cash provided by (used in) financing activities		345,932			503,437
Net increase (decrease) in cash and cash equivalents	$	9,825		$	25,622

Operating activities

Net cash used in operating activities was $336,107 during the six months ended June 30, 2023 and consisted of the net loss of $227,532 offset by the non-cash items for the six months ended June 30, 2023, of $298,477 change in change in fair value of derivative liabilities offset by the gain on derivative liabilities due to conversion of note payable, and a $22,954 decrease in depreciation and amortization expenses. The significant change in operating assets and liabilities was $175,000 in advances to Joint Venture.

Net cash used in operating activities was $473,793 for the six months ended June 30, 2022, and consisted of net income of $190,324, offset by a gain in change in derivative liability of $478,754 and an increase in Advances $325,000.

Investing Activities

The Company did not use any funds for investing activities during the six months ended June 30, 2023. The Company used $4,022 to purchase office equipment during the six months ended June 30, 2022.

Financing activities

Net cash provided in financing activities for the six months ended June 30, 2023, and 2022 was $145,868 and $503,437, respectively, consisting of the following:

Six Months ended June 30,	2023		2022
Advances from related parties	$	33,388	$	33,439
Proceeds from promissory notes		46,785		-
Proceeds from issuance of common stock and warrants		406,696		115,221
Proceeds from Self Liquidating notes		3,750.00
Proceeds from Unsecured loans		55,839
Net proceeds from convertible notes		-204,025		354,777
Net cash provided by financing activities	$	345,933	$	503,437

Going Concern

The financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since inception, resulting in an accumulated deficit of approximately $36,607,845 and a working capital deficit of $4,398,364 as of June 30, 2023, and future losses are anticipated. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

The ability of the Company to continue its operations as a going concern is dependent on management’s plans, which include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements.

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We currently do not see any need to raise additional capital at this time. Our current capital investors are on favorable terms, and we expect that we will be able to execute our business plan, grow the business and start generating greater revenue. We have no current plans to restrict our operations at this time. The Company may require additional funding to finance the growth of its current and expected future operations as well to achieve its strategic objectives. There can be no assurance that financing will be available in amounts or terms acceptable to the Company, if at all. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

Off-Balance Sheet Arrangements

As of June 30, 2023, the Company had no off-balance sheet arrangements.

Limited Operating History; Need for Additional Capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are a development stage company and have yet to generate any revenues from operations to implement our business plan fully. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and competition from larger organizations. We will require equity and/or debt financing to provide for the capital required to implement our plans. We will require additional funds to operate for the next year.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are not required to provide the information required by this Item because we are a smaller reporting company.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports, filed under the Securities Exchange Act of 1934, is recorded, processed, summarized, and reported within the periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired control objectives. In reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. In addition, the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, a control may become inadequate because of changes in conditions or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Table of Contents

As required by the SEC Rules 13a-15(b) and 15d-15(b), we carried out an evaluation under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

	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 Six months ended June 30, 2023. 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 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.

To address these material weaknesses, management engaged financial consultants, performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented. We have not remedied the material weaknesses as of June 30, 2023. The Company plans to take remedial action to address these weaknesses during the fiscal year ended 2023.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) of the Exchange Act that occurred during the quarter ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting, except the implementation of the controls identified above.

Table of Contents

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

As of the date of this filing, the Company is a party to Six pending litigation matters.

One matter is entitled Randazzo LLC v. Avani Holdings LLC & Global Fashion Technologies, Inc. This litigation was initiated by the plaintiff in order to evict Avani Holdings LLC from its rented premises in California and to recover unpaid rent. the company does not operate out of the premises in question and has never signed any leases or other documents with the plaintiff. A judgment of eviction was entered, but The company does not operate out of the premises in question and therefore did not appear in the matter to oppose the judgment of eviction. The plaintiff is also seeking unpaid rent in the amount of $26,595.

The second matter is entitled Patricia Witthuhn v. Global Fashion Technologies, Inc. This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to her employment with Avani Holdings LLC. The Company never hired Ms. Witthuhn and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation. The amount being sought by the plaintiff is approximately $15,000.

The third matter is entitled William Corso v. Global Fashion Technologies, Inc. This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to his employment with Avani Holdings LLC. The Company never hired Mr. Corso and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation. The amount being sought by the plaintiff is approximately $40,000.

Item 1A. Risk Factors

As a “smaller reporting company”, we are not required to provide the information required by this Item.

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

During the six months ended June 30, 2023, the Company issued common shares as follows:

	·	15,555,556 shares for cash amounting to $35,000; and

	·	302,731,907 shares for conversion of notes valued at $296,665.

The Company is required to issue a total of 100,000 shares of Series C Preferred Stock in connection with the Purchase Agreement, which shares are expected to be issued soon.

The Company is required to issue a total of 100,000 shares of Series D Preferred Stock in connection with the Asset Agreement, which shares are expected to be issued soon.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

N/A

Item 5. Other Information

None.

Table of Contents

Item 6. Exhibits

Exhibit Number		Description of Exhibit
31.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**		The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 formatted in Extensible Business Reporting Language (XBRL).

** Provided herewith

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

		Authentic Holdings Inc. formerly Global Fiber Technologies, Inc.
		(Registrant)

Dated: August 21, 2023		/s/ Christopher Giordano
		Christopher Giordano
		President, and Director
		(Principal Executive Officer)

Dated: August 21, 2023		/s/ Paul Serbiak
		Paul Serbiak
		CEO, Treasurer, Director and Secretary
		(Principal Financial Officer and Principal Accounting Officer)

nullnullnull

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 14, 2023
Cover [Abstract]
Entity Registrant Name	AUTHENTIC HOLDINGS, INC.
Entity Central Index Key	0001338929
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		1,978,087,926
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-52047
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	11-3746201
Entity Address Address Line 1	50 Division Street
Entity Address City Or Town	Somerset
Entity Address State Or Province	NJ
Entity Address Postal Zip Code	08873
City Area Code	732
Local Phone Number	695-4389
Entity Interactive Data Current	Yes

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 9,825	$ 0
Prepaid interest and deposits	0	0
Advances	450,000	625,000
Total Current Assets	459,825	625,000
Property and equipment, net of depreciation	45,968	68,206
Intangible assets	17,756	18,473
TOTAL ASSETS	523,549	711,679
Current Liabilities
Bank overdraft	0	306
Accounts payable and accrued liabilities	226,895	234,641
Accrued compensation	501,250	501,250
Unsecured notes and accrued interest payable	306,303	250,464
Convertible notes and accrued interest - net of debt discount of $92,000 and $155,641 respectively.	1,037,218	1,243,243
Convertible notes and accrued interest - related party	84,568	82,568
Promissory Notes and Accrued Interest	40,000
Promissory note and accrued interest - related party	502,093	495,308
Derivative liabilities	1,310,008	1,608,485
Advances from related parties	417,054	383,686
Related party loans and accrued interest	264,050	263,529
Self Liquidating Promissory Notes	168,750	165,000
Total Current Liabilities	4,858,189	5,228,480
Stockholders' Deficit
Common stock $0.001 par value, 2,500,000,000 shares authorized, 1,875,685,127 and 1,557,397,662 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.	1,875,684	1,557,397
Additional paid-in capital	30,397,322	30,305,914
Accumulated deficit	(36,607,845)	(36,380,313)
Stockholders' deficit	(4,334,640)	(4,516,802)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	523,549	711,679
Series D Preferred Stock
Stockholders' Deficit
Preferred stock, value	0	0
Series B Preferred Stock
Stockholders' Deficit
Preferred stock, value	$ 200	$ 200

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt discount on convertible debt	$ 92,000	$ 155,641
Common stock, shares par value	$ 0.001	$ 0.001
Common stock, shares authorized	2,500,000,000	2,500,000,000
Common stock, shares issued	1,875,685,127	1,557,397,662
Common stock, shares outstanding	1,875,685,127	1,557,397,662
Series D Preferred Stock
Preferred stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock
Preferred stock, shares par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	400,000	400,000
Preferred stock, shares issued	200,000	200,000
Preferred stock, shares outstanding	200,000	200,000

Condensed Consolidated Statement of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Condensed Consolidated Statement of Operations (Unaudited)
REVENUE	$ 0	$ 0	$ 0	$ 0
COST OF REVENUES	0	0	0	0
GROSS PROFIT (LOSS)	0	0	0	0
OPERATING EXPENSES
General and administrative	16,342	30,081	71,643	52,281
Depreciation and Amortization	11,450	29,485	22,953	58,970
Professional and Legal Fees	69,039	19,099	90,698	51,349
Officer salaries and compensation	0	0	0	0
Stock based compensation	0	0	0	0
Research and Development	15,545	0	41,850	0
Total Operating Expenses	112,376	78,665	227,144	162,600
LOSS FROM OPERATIONS	(112,376)	(78,665)	(227,144)	(162,600)
OTHER INCOME (EXPENSE)
(Income) Loss on change in fair value of derivative liabilities	(1,261,330)	(91,254)	(214,483)	478,754
Gain from extinguishment of debt	0	0	0	15,856
Interest expense and financing costs	38,173	(19,601)	75,763	(35,102)
(Income) Loss on Joint Venture	50,000		50,000
Interest expense - related parties	(4,184)	(7,433)	5,874	(102,834)
Other expense	19,800	(3,750)	83,235	(3,750)
Total other expense	(1,157,541)	(122,038)	389	352,924
NET LOSS	$ (1,045,165)	$ (200,703)	$ (227,532)	$ 190,324
Net loss per share	$ (0.0005)	$ (0.0001)	$ (0.00001)	$ 0.0002
Weighted average common shares outstanding	1,792,805,853	1,452,110,332	1,741,057,770	1,253,569,254

Condensed Consolidated Statement of Stockholders' Deficit (Unaudited) - USD ($)	Total	Common Stock	Additional paid in capital	Accumulated Deficit	Series B Preferred Stock
Balance, shares at Dec. 31, 2021		1,450,210,322			200,000
Balance, amount at Dec. 31, 2021	$ (3,679,391)	$ 1,450,210	$ 30,092,729	$ (35,222,530)	$ 200
Issuance of shares for conversion of notes, shares		15,638,695
Issuance of shares for conversion of notes, amount	62,407	$ 15,638	46,769
Stock issued for cash	0
Stock warrants issued for cash	60,000		60,000
Net income (loss)	391,027			391,027
Balance, shares at Mar. 31, 2022		1,465,849,017			200,000
Balance, amount at Mar. 31, 2022	(3,165,957)	$ 1,465,848	30,199,498	(34,831,503)	$ 200
Net income (loss)	(200,703)			(200,703)
Issuance of shares for conversion shares, shares		39,582,832
Issuance of shares for conversion shares, amount	100,000	$ 39,583	60,417
Balance, shares at Jun. 30, 2022		1,505,431,849			200,000
Balance, amount at Jun. 30, 2022	(3,266,660)	$ 1,505,431	30,259,915	(35,032,206)	$ 200
Balance, shares at Dec. 31, 2022		1,557,397,662			200,000
Balance, amount at Dec. 31, 2022	(4,516,802)	$ 1,557,397	30,305,914	(36,380,313)	$ 200
Issuance of shares for conversion of notes, amount	0
Stock issued for cash	35,001	$ 15,556	19,445
Net income (loss)	(1,209,261)			(1,209,261)
Stock issued for cash, shares		15,555,556
Adjustment shares issued, shares		139,630,947
Adjustment shares issued, amount	0	$ 0	0	0
Balance, shares at Mar. 31, 2023		1,712,584,165			200,000
Balance, amount at Mar. 31, 2023	(5,691,062)	$ 1,572,953	30,325,359	(37,589,574)	$ 200
Issuance of shares for conversion of notes, shares		302,731,907
Issuance of shares for conversion of notes, amount	374,697	$ 302,731	71,695
Net income (loss)	(227,532)			(227,532)
Adjustment shares issued, shares		(139,630,947)
Balance, shares at Jun. 30, 2023		1,875,685,125			200,000
Balance, amount at Jun. 30, 2023	$ (4,334,640)	$ 1,875,684	$ 30,397,322	$ (36,607,845)	$ 200

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (income)	$ (227,532)	$ 190,324
Adjustments to reconcile net income (loss) to net cash from operating activities:
Change in fair value of derivative liabilities	(298,477)	(478,754)
Extinguishment of derivative liabilities	0	0
Conversion of notes payable to equity		7,186
Depreciation - Property and equipment	22,954	24,972
Amortization - Intangible assets		33,998
Changes in operating assets and liabilities:
Bank Indebtedness		(2,455)
Advances to joint venture	175,000
Expenses paid for subsidiary		(325,000)
Accounts payable and accrued expenses	(8,052)	(37,711)
Accrued interest		113,647
Net cash used in operating activities	(336,107)	(473,793)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances from related party	0
Acquisition of equipment		(4,022)
Net cash used in investing activities	0	(4,022)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	33,888	33,439
Proceeds from stock warrants		60,000
Proceeds form promissory notes	46,785
Proceeds from issuance of common stock	409,696
Proceeds from unsecured loans	55,839	0
Proceeds from Self Liquidating notes	3,750	55,221
Net proceeds from convertible notes	(204,025)	354,777
Net cash provided by financing activities	345,933	503,437
Net change in cash and cash equivalents	9,825	25,622
Cash and cash equivalents - beginning of period		0
Cash and cash equivalents - end of period	9,825	25,622
Supplemental Cash Flow Disclosures
Cash paid for interest	0	0
Cash paid for income taxes	0	0
Non-Cash Investing and Financing Activity:
Shares issued for convertible notes settlement	$ 374,696	$ 78,263

DESCRIPTION OF BUSINESS AND GOING CONCERN

6 Months Ended

Jun. 30, 2023

DESCRIPTION OF BUSINESS AND GOING CONCERN

DESCRIPTION OF BUSINESS AND GOING CONCERN

NOTE 1 – DESCRIPTION OF BUSINESS AND GOING CONCERN

On April 18, 2019, the Company filed an amendment to change the name of the Company to Global Fiber Technologies, Inc.

The Purchase Agreement includes a funding obligation, which requires the Company to provide capital to fund the monthly expenses of Maybacks.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

Reclassifications

Specific amounts in the prior period’s financial statements have been reclassified to conform to the current presentation. These reclassifications did not affect the reported consolidated net loss.

Cash and Cash Equivalents

Inventories

Inventories are stated at the lower cost (first-in, first-out method) or net realizable value.

On June 30, 2023, and December 31, 2022, the Company had no acquired inventories.

Equipment

Equipment		5 Years
Furniture and Fixtures		7 Years
Forklift		3 Years

	June 30,			December 31,
	2023			2022
Furniture and Equipment	$	215,665		$	215,665
Forklift		20,433			20,433
Camera		4,022			4,022
Trident		733			733
TOTAL Equipment		240,853			240,853
Less accumulated depreciation		(194,885	)		(172,648	)
	$	45,968		$	68,206

Depreciation expenses amounted to $22,236 and $25,636 for the six months ended June 30, 2023 and 2022, respectively.

Intangible Assets

We amortize the cost of our intangible assets over the 15-year estimated useful life on a straight-line basis.

The following table sets forth the amortization for the intangible assets on June 30, 2023 and December 31, 2022:

	June 30, 2023			December 31, 2022

Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(189,848	)		(129,623	)
	$	17,756		$	18,473

Amortization expenses amounted to $717 and $664 for the six months ended June 30, 2023 and 2022, respectively.

Prepaid interest and deposits

Interest and deposits include prepaid consulting fees, OTC market annual fees, and license agreements. Prepaid interest is amortized over the life of the related liability.

Revenue Recognition

Revenue related to contracts with customers is evaluated utilizing the following steps:

	1.	Identify the contract, or contracts, with a customer.
	2.	Identify the performance obligations in the contract.
	3.	Determine the transaction price.
	4.	Allocate the transaction price to the performance obligations in the contract.
	5.	Recognize revenue when the Company satisfies a performance obligation.

Accounts Receivable

Leases

Income Taxes

Stock-based Compensation

For the six months ended June 30, 2023, and 2022, the Company incurred no stock-based compensation.

Beneficial Conversion Feature

Debt Issue Costs

Original Issue Discount

Use of Accounting Estimates

Fair Value

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following Six categories:

Level 1—Quoted market prices for identical assets or liabilities in active markets or observable inputs.

Level 2—Significant other observable inputs that observable market data can corroborate; and

Level 3—Significant unobservable inputs that observable market data cannot corroborate.

The following table summarizes fair value measurements by level on June 30, 2023 and December 31, 2022, measured at fair value on a recurring basis:

December 31, 2022	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,608,485.24	$	1,608,485.24

June 30, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,310,008	$	1,310,008

The concentration of Credit Risk

New Accounting Pronouncements

CAPITAL STOCK

6 Months Ended

Jun. 30, 2023

CAPITAL STOCK

CAPITAL STOCK

NOTE 3 – CAPITAL STOCK

Preferred Stock

Series B Preferred Stock

Series C Preferred Stock

The outstanding shares of Series C Preferred Stock shall automatically convert into shares of our common stock upon the following to occur:

	•	Upon the two-year anniversary of the filing of the Certificate of Designation with the State of Nevada, 25% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

	•	Upon achievement by Maybacks of reaching 40 channels, 50% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

	•	Upon the achievement by Maybacks of reaching the first $250,000 in “net ad revenue” (post ad agency payout), 2.5% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

	•	After the achievement by Maybacks of reaching the first $250,000 in “net ad revenue” (post ad agency payout), for each successive nine (9) times that Maybacks achieves $250,000 in “net ad revenue” (post ad agency payout), 2.5% of the shares of Series C Preferred Stock held by any Holder of record of Series C Preferred Stock shall be automatically converted into Common Stock at a ratio of one hundred shares of Common Stock for each share of Series C Preferred Stock.

Series D Preferred Stock

Common Stock

As of June 30, 2023, and December 31, 2022, the Company had 1,875,685,127 and 1,557,397,662 shares of its $0.001 par value common stock issued and outstanding, respectively.

During the six months ended June 30, 2023, the Company issued common shares as follows:

	·	Issued 15,555,556 shares for cash amounting to $35,000; and

	·	Issued 302,731,909 shares for conversion of notes valued at $175,187.

During the six months ended June 30, 2022, the Company had no issuance of shares.

Stock Options

No stock options were issued during the six months ended June 30, 2023, and 2022. All stock options issued previous to 2021 were either exercised or expired.

NOTES PAYABLE

6 Months Ended

Jun. 30, 2023

NOTES PAYABLE

NOTES PAYABLE

NOTE 4 – NOTES PAYABLE

Unsecured Notes Payable

The unsecured note and accrued interest were $306,303 as of June 30, 2023 and $250,464 as of December 31, 2022. The note is currently in default.

Convertible Notes Payable

As of June 30, 2023, and December 31, 2022, convertible notes outstanding are $1,022,359 and $1,243,243 respectively.

The following table summarizes the convertible notes included in the balance sheet on June 30, 2023 and December 31, 2022:

	June 30, 2023			December 31, 2022
Principal balances	$	938,330		$	1,180,001
Discount		(87,000	)		(92,000	)
Accrued Interest		(185,888	)		(155,243	)
	$	1,037,218		$	1,243,243

DERIVATIVE LIABILITIES

6 Months Ended

Jun. 30, 2023

DERIVATIVE LIABILITIES

DERIVATIVE LIABILITIES

NOTE 5 – DERIVATIVE LIABILITIES

The following table summarizes the derivative liabilities included in the balance sheet at June 30, 2023:

Fair Value Measurements Using Significant Observable Inputs (Level 3)

Balance - December 31, 2022	$	1,608,485
Net Loss (gain) on change in fair value of the derivative		(214,483	)
Adjustment due to conversion of notes		(83,994	)
Balance – June 30, 2023	$	1,310,008

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 6 – RELATED PARTY TRANSACTIONS

Promissory Notes Payable – related party

Convertible Notes Payable – related party

Related Party Loans

Balances of all loans due to related parties as of June 30, 2023:

	Principal		Accrued Interest		Total
Promissory note – related party (net of $17,594 discount)	$	429,556	$	72,537	$	502,093
Convertible notes – Related party		50,000		34,568		84,568
Related Party Loans		208,150		55,900		264,050
Total Related Parties Loans		687,706		167,005	$	854,711

LEASES

6 Months Ended

Jun. 30, 2023

LEASES

LEASES

NOTE 7 – LEASES

The company currently does not have any long-term operating lease. Our operating lease expenses of $0 for the six months ended June 30, 2023 and $1,601 for the year ended December 31, 2022.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 8 – COMMITMENTS AND CONTINGENCIES

NET LOSS PER SHARE

6 Months Ended

Jun. 30, 2023

NET LOSS PER SHARE

NET LOSS PER SHARE

NOTE 9 – NET LOSS PER SHARE

Potentially dilutive securities were comprised of the following:

	June 30, 2023		December 31, 2022
Warrants		11,000,000		11,000,000
Options		2,700,000		2,700,000
Convertible notes payable, including accrued interest		936,887,548		936,887,548
		950,587,548		950,587,548

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 10 – SUBSEQUENT EVENTS

Subsequent to the reporting period, the Company issued 102,402,799 shares for conversion of notes valued at $61,441.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basic of presantation

Principles of Consolidation

Reclassification

Specific amounts in the prior period’s financial statements have been reclassified to conform to the current presentation. These reclassifications did not affect the reported consolidated net loss.

Cash and Cash Equivalents

Inventories

Inventories are stated at the lower cost (first-in, first-out method) or net realizable value.

On June 30, 2023, and December 31, 2022, the Company had no acquired inventories.

Equipment

Equipment		5 Years
Furniture and Fixtures		7 Years
Forklift		3 Years

	June 30,			December 31,
	2023			2022
Furniture and Equipment	$	215,665		$	215,665
Forklift		20,433			20,433
Camera		4,022			4,022
Trident		733			733
TOTAL Equipment		240,853			240,853
Less accumulated depreciation		(194,885	)		(172,648	)
	$	45,968		$	68,206

Depreciation expenses amounted to $22,236 and $25,636 for the six months ended June 30, 2023 and 2022, respectively.

Intangible assets

We amortize the cost of our intangible assets over the 15-year estimated useful life on a straight-line basis.

The following table sets forth the amortization for the intangible assets on June 30, 2023 and December 31, 2022:

	June 30, 2023			December 31, 2022

Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(189,848	)		(129,623	)
	$	17,756		$	18,473

Amortization expenses amounted to $717 and $664 for the six months ended June 30, 2023 and 2022, respectively.

Prepaid interest and deposits

Interest and deposits include prepaid consulting fees, OTC market annual fees, and license agreements. Prepaid interest is amortized over the life of the related liability.

Revenue Recognition

Revenue related to contracts with customers is evaluated utilizing the following steps:

	1.	Identify the contract, or contracts, with a customer.
	2.	Identify the performance obligations in the contract.
	3.	Determine the transaction price.
	4.	Allocate the transaction price to the performance obligations in the contract.
	5.	Recognize revenue when the Company satisfies a performance obligation.

Accounts Receivable

Leases

Income taxes

Stock-based Compensation

For the six months ended June 30, 2023, and 2022, the Company incurred no stock-based compensation.

Beneficial Conversion Feature

Debt Issue Costs

Original Issue Discount

Use of Accounting Estimates

Fair Value

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following Six categories:

Level 1—Quoted market prices for identical assets or liabilities in active markets or observable inputs.

Level 2—Significant other observable inputs that observable market data can corroborate; and

Level 3—Significant unobservable inputs that observable market data cannot corroborate.

The following table summarizes fair value measurements by level on June 30, 2023 and December 31, 2022, measured at fair value on a recurring basis:

December 31, 2022	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,608,485.24	$	1,608,485.24

June 30, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,310,008	$	1,310,008

Concentration of credit risk

New Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Property plant and equipment

Equipment		5 Years
Furniture and Fixtures		7 Years
Forklift		3 Years

	June 30,			December 31,
	2023			2022
Furniture and Equipment	$	215,665		$	215,665
Forklift		20,433			20,433
Camera		4,022			4,022
Trident		733			733
TOTAL Equipment		240,853			240,853
Less accumulated depreciation		(194,885	)		(172,648	)
	$	45,968		$	68,206

Schedule of amortization for the intangible assets

	June 30, 2023			December 31, 2022

Patent	$	12,406		$	12,406
Websites		10,690			10,690
Royalties		125,000			125,000
		148,096			148,096
Less accumulated amortization		(189,848	)		(129,623	)
	$	17,756		$	18,473

Schedule of fair value measurements

December 31, 2022	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,608,485.24	$	1,608,485.24

June 30, 2023	Level 1		Level 2		Level 3		Total
Liabilities
Derivative Liabilities	$	-	$	-	$	1,310,008	$	1,310,008

NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2023

NOTES PAYABLE

Schedule of convertible notes

	June 30, 2023			December 31, 2022
Principal balances	$	938,330		$	1,180,001
Discount		(87,000	)		(92,000	)
Accrued Interest		(185,888	)		(155,243	)
	$	1,037,218		$	1,243,243

DERIVATIVE LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

DERIVATIVE LIABILITIES

Schedule of fair value of derivative liability

Balance - December 31, 2022	$	1,608,485
Net Loss (gain) on change in fair value of the derivative		(214,483	)
Adjustment due to conversion of notes		(83,994	)
Balance – June 30, 2023	$	1,310,008

RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2023

RELATED PARTY TRANSACTIONS

Summary of Related Party Transactions

	Principal		Accrued Interest		Total
Promissory note – related party (net of $17,594 discount)	$	429,556	$	72,537	$	502,093
Convertible notes – Related party		50,000		34,568		84,568
Related Party Loans		208,150		55,900		264,050
Total Related Parties Loans		687,706		167,005	$	854,711

NET LOSS PER SHARES (Tables)

6 Months Ended

Jun. 30, 2023

NET LOSS PER SHARE

Potentially dilutive securities

	June 30, 2023		December 31, 2022
Warrants		11,000,000		11,000,000
Options		2,700,000		2,700,000
Convertible notes payable, including accrued interest		936,887,548		936,887,548
		950,587,548		950,587,548

DESCRIPTION OF BUSINESS AND GOING CONCERN (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Jun. 18, 2019	Jun. 30, 2023	Jun. 20, 2023	Apr. 26, 2023	Dec. 31, 2022
Working capital deficit		$ 5,600,000
Common stock share to be issue for issue of note		1,875,685,127			1,557,397,662
Accumulated deficit		$ 37,700,000
AHO [Member]
Common stock share to be issue for issue of note	6,400,000
Issuance of promissory note	$ 447,150
Interest rate of issued note		3.00%
AHI [Member]
Common stock share to be issue for issue of note	200,000
Series D Preferred Stock
Preferred stock share issued		0	100,000		0
Preferred stock par value		$ 0.001	$ 0.001		$ 0.001
Series C Preferred Stock [Member]
Preferred stock share issued				100,000
Preferred stock par value				$ 0.001

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2023
Furniture And Fixtures [Member]
Estimated useful lives	7 years
Forklift [Member]
Estimated useful lives	3 years
Equipments [Member]
Estimated useful lives	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property plant and equipment gross	$ 240,853	$ 240,853
Less accumulated depreciation	(194,885)	(172,648)
Property plant and equipment net	45,968	68,206
Furniture And Fixtures [Member]
Property plant and equipment gross	215,665	215,665
Forklift [Member]
Property plant and equipment gross	20,433	20,433
Camera [Member]
Property plant and equipment gross	4,022	4,022
Trident [Member]
Property plant and equipment gross	$ 733	$ 733

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Amortization for the intangible assets	$ 148,096	$ 148,096
Less accumulated amortization	(189,848)	(129,623)
Amortization for the intangible assets, net	17,756	18,473
Patent [Member]
Amortization for the intangible assets	12,406	12,406
Websites [Member]
Amortization for the intangible assets	10,690	10,690
Royalties [Member]
Amortization for the intangible assets	$ 125,000	$ 125,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Derivative Liabilities	$ 1,310,008	$ 1,608,485
Level 1 [Member]
Derivative Liabilities	0	0
Level 2 [Member]
Derivative Liabilities	0	0
Level 3 [Member]
Derivative Liabilities	$ 1,310,008	$ 1,608,485

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Depreciation expense	$ 22,236	$ 25,636
Amortization expense	$ 717	$ 664
Intangible assets, estimated useful life	15 years
ECO CHAIN 360 [Member]
Ownership interest	51.00%
AHI [Member]
Ownership interest	80.00%

CAPITAL STOCK (Details Narrative) - USD ($)	1 Months Ended			6 Months Ended
CAPITAL STOCK (Details Narrative) - USD ($)	Jun. 20, 2023	Apr. 26, 2023	Sep. 30, 2014	Jun. 30, 2023	Dec. 31, 2022
Common stock, shares par value				$ 0.001	$ 0.001
Common stock, shares outstanding				1,875,685,127	1,557,397,662
Common stock, shares issued				1,875,685,127	1,557,397,662
Conversion Of Notes [Member]
Stock issued during period shares				302,731,909
Stock issued during period amount				$ 175,187
Series D Preferred Stock
Preferred stock, par value	$ 0.001			$ 0.001	$ 0.001
Preferred stock, stated value	$ 50
Preferred stock, shares authorized	100,000			100,000	100,000
Description about redeem of preferred stock	The Company has the right to redeem the Series D Preferred Stock after five years by making a payment of cash equal to 106% of the sum of an amount equal to the total number of Series D Preferred Stock held by the Holder multiplied by the Stated Value
Series C Preferred Stock [Member]
Preferred stock, par value		$ 0.001
Preferred stock, shares authorized		100,000
Share converted into common stock		25.00%
Class B Preferred Stock [Member]
Preferred stock, par value			$ 0.001
Preferred stock, shares authorized	400,000		1,000,000
Non cumulative dividends rate received per annum			8.00%
Preferred stock voting rights			10,000
Common stocks [Member]
Common stock, shares par value				$ 0.001	$ 0.001
Common stock, shares outstanding				1,875,685,127	1,557,397,662
Common stock, shares issued				1,875,685,127	1,557,397,662
Stock issued during period shares				15,555,556
Stock issued during period amount				$ 35,000

NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
NOTES PAYABLE
Convertible notes payable	$ 938,330	$ 1,180,001
Discount	(87,000)	(92,000)
Accrued Interest	(185,888)	(155,243)
Convertible notes and accrued interest	$ 1,037,218	$ 1,243,243

NOTES PAYABLE (Details Narrative) - USD ($)	12 Months Ended
NOTES PAYABLE (Details Narrative) - USD ($)	Dec. 31, 2019	Jun. 30, 2023	Dec. 31, 2022
Convertible notes and accrued interest		$ 1,037,218	$ 1,243,243
Notes Payable		306,303	250,464
Convertible Promissory Notes [Member]
Convertible notes and accrued interest		$ 1,022,359	1,243,243
Unsecured Notes Payable One [Member]
Shares to be issued under agreement, shares		50,000
Shares to be issued under agreement, value		$ 50,000
November 25, 2014 [Member] \| Unsecured Debt [Member]
Interest rate		10.00%
Notes Payable		$ 306,303	$ 250,464
Note payable issued		$ 100,000
Repayment of unsecured note payable	$ 15,000
April 1, 2016 [Member] \| Unsecured Debt [Member] \| Forbearance agreement [Member]
Interest rate		12.00%
Shares to be issued under agreement, shares		150,000
Shares to be issued under agreement, value		$ 150,000

DERIVATIVE LIABILITIES (Details)	6 Months Ended
DERIVATIVE LIABILITIES (Details)	Jun. 30, 2023 USD ($)
DERIVATIVE LIABILITIES
Derivative liabilities beg	$ 1,608,485
Net Loss (gain) on change in fair value of the derivative	(214,483)
Adjustment due to conversion of notes	(83,994)
Derivative liabilities end	$ 1,310,008

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Total loans due to related parties	$ 502,093	$ 495,308
Total loans due to related parties	84,568	82,568
Total loans due to related parties	264,050	$ 263,529
Promissory Notes Payable [Member]
Principal loans due to related parties	429,556
Accrued Interest	72,537
Total loans due to related parties	502,093
Convertible Notes [Member]
Principal loans due to related parties	50,000
Accrued Interest	34,568
Total loans due to related parties	84,568
Related Party Loans [Member]
Principal loans due to related parties	208,150
Accrued Interest	55,900
Total loans due to related parties	264,050
Total Related Parties Loans [Member]
Principal loans due to related parties	687,706
Accrued Interest	167,005
Total loans due to related parties	$ 854,711

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended		12 Months Ended
	Jun. 18, 2019	Aug. 31, 2015	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2022
Advance from related party			$ 417,054				$ 383,686
Net cash proceeds of received from related parties for operating expenses			33,388	$ 33,439
Investor [Member] \| Convertible Notes Payable [Member]
Interest rate		8.00%
Notes Payable		$ 50,000
Accumulated interest			$ 32,568
Maturity Date		Aug. 08, 2016
Conversion price		$ 1.00
Chief Executive Officer [Member]
Loans received from related party						$ 284,900
Additional Loans received from related party					$ 160,650
Interest bearing					5.00%
Debt conversion on convertible note					$ 241,059
Conversion price					$ 0.19
Debt conversion on convertible note, common stock					580,000
Gain on extinguishment of debt					$ 130,859
AH Originals, Inc [Member] \| Promissory Notes Payable [Member]
Promissory note	$ 447,150
Interest rate	3.00%

LEASES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
LEASES (Details Narrative) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
LEASES
Description of leases	operating lease for an office premise had expired on October 1 and the lease was not renewed
Operating lease costs	$ 0	$ 1,601

COMMITMENTS AND CONTINGENCIES (Details Narrative)	6 Months Ended
COMMITMENTS AND CONTINGENCIES (Details Narrative)	Jun. 30, 2023 USD ($)
Pending Litigation #1 [Member]
Alleged Damages	$ 26,595
Pending Litigation #2 [Member]
Alleged Damages	15,000
Pending Litigation #3 [Member]
Alleged Damages	$ 40,000

NET LOSS PER SHARE (Details) - shares	6 Months Ended	12 Months Ended
NET LOSS PER SHARE (Details) - shares	Jun. 30, 2023	Dec. 31, 2022
Potentially dilutive securities	950,587,548	950,587,548
Convertible Notes Payable [Member]
Potentially dilutive securities	936,887,548	936,887,548
Options [Member]
Potentially dilutive securities	2,700,000	2,700,000
Warrants [Member]
Potentially dilutive securities	11,000,000	11,000,000

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