Use of Generally Accepted Accounting Principles ("GAAP") Financial Measures



We use United States GAAP financial measures in the section of this report
captioned "Management's Discussion and Analysis or Plan of Operation" (MD&A),
unless otherwise noted. All of the GAAP financial measures used by us in this
report relate to the inclusion of financial information. This discussion and
analysis should be read in conjunction with our financial statements and the
notes thereto included elsewhere in this annual report. All references to dollar
amounts in this section are in United States dollars, unless expressly stated
otherwise. Please see Item 1A [Missing Graphic Reference] "Risk Factors" for a
list of our risk factors.

Comparison of the Fiscal Years Ended December 31, 2020 and December 31, 2019

A comparison of the Company's operating results for the fiscal years ended December 31, 2020 and December 31, 2019 are as follows:

For the year ended December 31, 2020:



                                                                                           North
                                                                                         American
                                                                                          Custom
                                           Global Digital         GDSI Florida,          Specialty
                                           Solutions, Inc              LLC             Vehicles, Inc          Totals
Revenue                                   $               -      $             -      $             -      $           -
Cost of Sales                                             -                    -                    -                  -
Gross Profit                                              -                    -                    -                  -
Operating Expenses                                1,085,417                    -                    -          1,070,317
Operating Income (Loss)                          (1,085,417 )                  -                    -         (1,070,317 )
Other Income (Expenses)                         (11,521,133 )                  -                    -        (11,521,133 )
Income (Loss) - Before Tax                $     (12,605,540 )    $             -      $             -      $ (12,591,440 )

For the year ended December 31, 2019:





                                                                                                North
                                                                                              American
                                            Global Digital        GDSI Florida,                Custom
                                            Solutions, Inc             LLC            Specialty Vehicles, Inc.          Totals
Revenue                                    $              -      $             -      $                       -      $          -
Cost of Sales                                             -                    -                              -                 -
Gross Profit                                              -                    -                              -                 -
Operating Expenses                                1,363,800                    -                              -         1,363,800
Operating Income (Loss)                          (1,363,800 )                  -                              -         (1363,800 )
Other Income (Expenses)                          (1,928,722 )                 15                              -        (1,928,707 )
Income (Loss) - Before Tax                 $     (3,292,522 )    $            15      $                       -      $ (3,292,507 )


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The variances between fiscal years ending December 31, 2020, and 2019 are as
follows:



                                                                                                      North
                                                                                                    American
                                              Global Digital                                         Custom
                                              Solutions, Inc        GDSI Florida, LLC        Specialty Vehicles, Inc          Totals

Revenue                                      $              -      $                 -      $                       -      $          -
Cost of Sales                                               -                        -                              -                 -
Gross Profit                                                -                        -                              -                 -
Operating Expenses                                   (293,483 )                      -                              -           293,483
Operating Income (Loss)                              (293,483 )                      -                              -          (293,483 )
Other Income (Expenses)                            (9,592,401 )                      -                              -        (9,592,401 )
Income (Loss) - Before Tax                   $     (9,298,918 )    $                 -      $                       -      $ (9,298,918 )




Operating Loss

Loss from operations for the years ended December 31, 2020 and 2019 was $1,085,417 and $1,363,800 respectively. The decrease in operating loss is due to decrease in Selling and Administrative costs.

Liquidity, Financial Condition and Capital Resources

As of December 31, 2020, we had cash of $264 on hand and a working capital deficiency of $17,403,295 as compared to cash on hand of $493,402 and a working capital deficiency of $6,183,789 as of December 31, 2019.

The decrease in working capital is mainly due to the overall reduction in our business activities and lack of outside funding.





Note Financing



On January 26, 2015, the Company agreed to a $250,000 principal (and a $25,000
original discount amount) Convertible Note with JMJ Financial ("JMJ"). The Note
matures on January 26, 2017, unless earlier converted pursuant to the terms of
the Convertible Note. The Note bears interest at 0% if repaid in the first 90
days and then a one-time interest charge of 12% applied on the principal sum.
The outstanding principal and interest under the Note is convertible, solely
upon an Event of Default (as defined in the Note), at the option of the Holder
of the Note into shares of the Company's common stock as set forth in the Note.

During the year ended December 31, 2017, in settlement of the default, we entered into a Repayment Agreement with JMJ Financial. The Company agreed to repay the balance as follows by wire:

? $12,500 within five business days of the Issuer securing funding, provided that

such payment shall be made on January 31, 2018.

? $12,500 within 45 days after the first payment.

? $12,500 within 45 days after the second payment.

? $47,014 within 30 days after the third payment.

A total of $25,000 has been paid through the date of this filing. The first payment of $12,500 was made on February 14, 2018, and the second payment of $12,500 was made on May 17, 2018. No payments have been made since then.


On January 16, 2015, the Company agreed to a $78,750 principal Convertible
Redeemable Note with LG Capital Funding, LLC ("LG Capital"). The Note matures on
January 16, 2016, unless earlier converted pursuant to the terms of the
Convertible Note. The Note bears interest at 8% per annum. The outstanding
principal and interest under the Note is convertible, solely upon an Event of
Default (as defined in the Note), at the option of the Holder of the Note into
shares of the Company's common stock as set forth in the Note. On December 12,
2017, the Company entered into a redemption agreement with LG Capital Funding,
LLC, to repay the outstanding balance of $68,110.

                                      -18-

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During the year ended December 31, 2017, in settlement of the default, we entered into a Convertible Note Redemption Agreement with LG Capital Funding, LLC. The Company is to wire redemption payment as follows:

? $6,500 by December 29, 2017 (paid on January 2, 2018)

? $6,500 by January 31, 2018 (paid on March 5, 2019)

? $6,500 by February 28, 2018 (paid on March 5, 2019)






 ? $25,000 by March 30, 2018

? The remaining balance by April 30, 2018

A total of $19,500 has been paid at the date of this filing, with the remaining scheduled payments not yet made.





On December 22, 2017, the Company entered into a financing agreement with an
accredited investor for $1.2 million amended on December 10,2019 and increased
to $1,850,000.



Under the terms of the agreement, the Company is to receive milestone payments
based on the progress of the Company's lawsuit for damages against Grupo Rontan
Metalurgica, S.A (the "Lawsuit"). Such milestone payments consist of (i) an
initial purchase price payment of $300,000, which the Company received on
December 22, 2017 (ii) $150,000 within 30 days of the Lawsuit surviving a motion
to dismiss on the primary claims; (iii) $100,000 within 30 days of the close of
all discovery in the Lawsuit; and (iv) $650,000 within 30 days of the Lawsuit
surviving a motion for summary judgment and challenges on the primary claims. As
part of the agreement, the Company shall pay the investor an investment return
of 100% of the litigation proceeds to recoup all money invested, plus 27.5% of
the total litigation proceeds received by the Company. As of December 31, 2019
$1,850,000 was outstanding, as of December 31, 2020 and through the date of this
report, the $2,550,000 note remains outstanding.



On December 23, 2017, the Company entered into a $485,000 Demand Promissory Note
with Vox Business Trust, LLC (the "Purchaser"). The note was in settlement of
the amounts accrued under a consulting agreement (Note 7), including $200,000
owed for retainer payments through December 2017 and $285,000 owed to the
Purchaser when the Resolution Progress Funding was met on December 22, 2017. As
part of the agreement, the Purchaser may not demand payment prior to the date of
the Resolution Funding Date. The Company also agreed to grant 5,000,000 shares
within 90 days of the Resolution Progress Funding Date and 10,000,000 shares
within 90 days of the Resolution Funding Date. The 5,000,000 shares were issued
on March 13, 2018.




On December 26, 2017, the Company entered into a $485,000 Demand Promissory Note
with RLT Consulting, Inc (the "Purchaser"). The note was in settlement of the
amounts accrued under a consulting agreement (Note 7), including $200,000 owed
for retainer payments through December 2017, and $285,000 owed to the Purchaser
when the Resolution Progress Funding was met on December 22, 2017. As part of
the agreement, the Purchaser may not demand payment prior to the date of the
Resolution Funding Date. The Company also agreed to grant 5,000,000 shares
within 90 days of the Resolution Progress Funding Date and 10,000,000 shares
within 90 days of the Resolution Funding Date. The 5,000,000 shares were issued
on March 13, 2018 (along with an additional 4,000,000 for further services).

Investment Return Purchase Agreements





On April 3, 2018, the Company entered into an Investment Return Purchase
Agreement with an accredited investor (the "Purchaser") for proceeds of $50,000
(the "Investment Agreement"). Under the terms of the Investment Agreement, the
Company agreed to pay the Purchaser the $50,000 proceeds plus a 50% return, or
$25,000 (the "Investment Return") within seven (7) months from the date of the
Investment Agreement. The Investment Return is being recognized as interest
expense over the seven months. In addition, the Company agreed to issue to the
Purchaser 1,000,000 warrants to purchase common stock of the Company at an
exercise price of $0.01 per share, exercisable for a period of five (5) years.
The warrants were valued using the Black Scholes Merton model, resulting in a
fair value of $9,000. The key valuation assumptions used consist, in part, of
the price of the Company's common stock of $0.009 at issuance date; a risk-free
interest rate of 2.60% and expected volatility of the Company's common stock, of
234.58%. Due to the short-term nature of the Investment Agreement and the
insignificant amount, the warrant fair value was immediately expensed as a
financing cost. As of the date of the issuance of these financial statements,
the Investment Return has been paid to the Purchaser, and $0 is outstanding.



On May 15, 2018, the Company entered into an Investment Return Purchase
Agreement with an accredited investor (the "Purchaser") for proceeds of $200,000
(the "Investment Agreement"). Under the terms of the Investment Agreement, the
Company agreed to pay the Purchaser the $200,000 proceeds plus a 10% return, or
$20,000 (the "Investment Return") within three (3) months from the date of the
Investment Agreement. The Investment Return is being recognized as interest
expense over the three months. Such Investment Return shall be paid earlier if
the Company secures funding totaling $500,000 within 90 days from the date of
the Investment Agreement. In addition, the Company agreed to issue to the
Purchaser 2,000,000 warrants to purchase common stock of the Company at an
exercise price of $0.01 per share, exercisable for a period of three (3) years.
The warrants were valued using the Black Scholes Merton model, resulting in a
fair value of $13,000. The key valuation assumptions used consist, in part, of
the price of the Company's common stock of $0.007 at issuance date; a risk-free
interest rate of 2.75% and expected volatility of the Company's common stock, of
274.39%, Due to the short-term nature of the Investment Agreement, the warrant
fair value was immediately expensed as a financing cost. As of December 31,
2020, the Investment Return has not been paid to the Purchaser, and $200,000 is
outstanding. We are currently in default under terms of the note.

                                      -19-

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Notes Payable



On May 12, 2020, the Company and BBVA USA entered into a 1% SBA PPP, Promissory
Note, in the aggregate principal of $103,125. The note is payable in monthly
payments of $5,805 beginning on December 12, 2020, ending on May 12, 2022.



On August 31, 2017, the Company entered into a $20,000 6% promissory note with
an individual. The note is due on February 15, 2018. Upon default, the interest
rate increases to 18% until the principal is fully repaid.

On May 1, 2018, the Company entered into a $36,000 promissory note with an individual with $5,000 original issue discount for net proceeds of $31,000. The Company is currently in default under the terms of this note.





On June 1, 2018, the Company entered into a $300,000 non-convertible note with
an accredited investor with $150,000 original issue discount ("OID") for net
proceeds of $150,000. As part of the note agreement, the Company also agreed to
issue the investor 5,000,000 warrants at an exercise price of $0.01, exercisable
for a period of three (3) years. The warrants were valued using the Black
Scholes Merton model, resulting in a relative fair value after allocation of
$28,378. The key valuation assumptions used consist, in part, of the price of
the Company's common stock of $0.007 at issuance date; a risk-free interest rate
of 2.62% and expected volatility of the Company's common stock, of 275.26%, The
relative fair value of the warrants as well as the OID have been classified as a
debt discount to be amortized over the life of the note using the effective
interest method. Amortization expense for the year ended December 31, 2019 was
$111,667. Payments of $100,000 were made on May 31, 2019 and June 24, 2019. As
of December 31, and the issuance date of these financial statement $100,000
remains outstanding. The note bears a personal guarantee by William Delgado, the
Chief Executive Officer of the Company. As further security for the note, Mr.
Delgado has also pledged the 1,000,000 Convertible Preferred Shares of the
Company that he owns, as well as 5,000,000 common shares of another public
company in which Mr. Delgado is a director and Chief Financial Officer.



On May 28, 2019, the Company amended the March 28, 2018 $50,000 note payable.
The Company agreed to increase the holder's return by $25,000 to $50,000 and
repaid the original $50,000 principal in May 2019. Additionally, the holder is
to receive 1,000,000 additional common stock warrants under the same terms as
the original March 2018 warrants and the holder will receive $15,000 in common
stock at a 20% discount to the closing price on the date the $50,000 holder's
return is paid. The note was paid off on May 22, 2019 and the stock was issued
on August 10, 2019.

Securities Purchase Agreement/Convertible Notes





On December 19, 2018, The Company and Adar Alef, LLC entered into a security
purchase agreement for four 8% Convertible Notes in the aggregate principal of
$105,000 with all four notes being in the amount of $26, 500 each. The notes
shall contain a 5% OID such that the purchase price shall be $25,000. The notes
are convertible into shares of common stock of The Company. Note 1 was issued on
December 19, 2018 and paid off on June 24, 2019. Notes 1 and 2 in the amount of
$25,250 were issued on August 1st and August 19th respectively The note was

paid
off on April 15, 2020.



On March 7, 2019, the Company and Power Up Lending Group entered into a security
purchase agreement for a 10% Convertible Note in the aggregate principal of
$58,000 due on March 7, 2020. The note is convertible into shares of common
stock of the Company. The conversion price is equal to the Variable Conversion
price which is defined as 61% of the Market Price for the lowest two trading
dates during a fifteen-day trading period ending on the latest complete trading
date prior to the Conversion date. The note was paid off on September 10, 2019.



On August 15, 2019, the Company and Power Up Lending Group entered into a
security purchase agreement for a 10% Convertible Note in the aggregate
principal of $53,000 due on August 15, 2020. The note is convertible into shares
of common stock of the Company. The conversion price is equal to the Variable
Conversion price which is defined as 61% of the Market Price for the lowest two
trading dates during a fifteen-day trading period ending on the latest complete
trading date prior to the Conversion date. As of the issuance date of these
financial statements, the note remains outstanding. The note was paid off in
August 15, 2019
On September 24, 2019, the Company and Power Up Lending Group entered into a
security purchase agreement for a 10% Convertible Note in the aggregate
principal of $58,000 due on September 24, 2020. The note is convertible into
shares of common stock of the Company. The conversion price is equal to the
Variable Conversion price which is defined as 61% of the Market Price for the
lowest two trading dates during a fifteen-day trading period ending on the
latest complete trading date prior to the Conversion date. The note was paid off
on September 9, 2020.



On May 10, 2019, the Company and GHS Investments LLC entered into a security
agreement for a 10% Convertible Note in the aggregate principal of $335,000 due
on February 10, 2020. The note carries original issue discount or $35,000. The
note is convertible into shares of common stock of the Company. The "Conversion
Price" shall mean 60% multiplied by the Market Price (as defined herein),
representing a discount rate of 40%. "Market Price" means the lowest Traded
Price for the Common Stock during the twenty (20) Trading Day period ending on
the latest complete Trading Day prior to the Conversion Date. The Company is
required to maintain a common share reserve of not less than three times the
number of shares that is actually issuable upon full conversion of the note. The
purchaser will also receive warrants to purchase 5,000,000 shares of GDSI common
stock at $.01/share. Warrants will have a three-year term to exercise. The
Convertible Note is personally guaranteed by William Delgado, CEO. The note has
been extended by the lender and the principal balance owed as of December 31,
2020, is $608,760. As of December 31, 2019 $1,850,000 was outstanding, as of
December 31, 2020 and through the date of this report, the $2,550,000 note

remains outstanding.

                                      -20-

  Table of Contents

Convertible Promissory Note




On November 2, 2018, The Company entered into a convertible promissory note
arrangement with Actus Fund, LLC in the principal amount of $90,000. The
principal amount of the note with interest at 12% is due on July 2, 2019. The
note is convertible into shares of The Company's common stock. The conversion
price shall equal the lessor of (i) Current Market price or (ii) Variable Market
price as defined as Market Price less a 50% discount price. The note was paid
off on May 15, 2019.



On August 9, 2019, The Company entered into a convertible promissory note
arrangement with Actus Fund, LLC in the principal amount of $142,750. The
principal amount of the note with interest at 12% is due on May 19, 2020. The
note is convertible into shares of The Company's common stock. The conversion
price shall equal the lessor of (i) Current Market price or (ii) Variable Market
price as defined as Market Price less a 50% discount price. The note was paid
off on February 2, 2020.



On April 7, 2020, The Company entered into a convertible promissory note
arrangement with Actus Fund, LLC in the principal amount of $197,000. The
principal amount of the note with interest at 12% is due on February 7, 2021.
The note is convertible into shares of The Company's common stock. The
conversion price shall equal the lessor of (i) Current Market price or (ii)
Variable Market price as defined as Market Price less a 50% discount price. As
of the issuance date of the financial statements the note remains outstanding
and is in default




On January 21, 2019, the Company entered into a Convertible Promissory Note with
Crown Bridge Partners, LLC., in the principal amount of $75,000. The note
carries original issue discount of $7,500 The Principal amount with interest at
12% will be due in twelve months from the advance. The Principal amount will be
advanced in Tranches of $25,000 each. The note is convertible into shares of The
Company's common stock. The conversion price shall equal the lessor of (i)
Current Market price or (ii) Variable Market price as defined as Market Price
less a 45% discount price. In addition, the Company agreed to issue to Crown
Bridge Partners 3,750,000 warrants to purchase common stock of the Company at an
exercise price of $0.01 per share, exercisable for a period of five (5) years.
The outstanding balance of the note was converted on April 14, 2020.



On February 26, 2019, the Company entered into a 10% Convertible Promissory Note
with Tangiers Global LLC. in the principal amount of $55,000 due on February 26,
220. The note is convertible into shares of the Company's common stock. The
conversion price shall equal 55% of the lowest trading price of the Company's
common stock during the 20 consecutive trading days prior to the date on which
the holder elects to convert part of all of the note. The note was paid off

on
September 19, 2019.




On October 16, 2019, the Company entered into a 10% Convertible Promissory Note
with Tangiers Global LLC. in the principal amount of $137,500 due on October 16,
2020. The note is convertible into shares of the Company's common stock. The
conversion price shall equal 60% of the lowest trading price of the Company's
common stock during the 20 consecutive trading days prior to the date on which
the holder elects to convert part of all of the note. The note was paid off

on
May 5, 2020.




  On February 7, 2020, the Company and Power Up Lending Group entered into a
security purchase agreement for a 10% Convertible Note in the aggregate
principal of $103,000, due on February 7, 2021. The note is convertible into
shares of common stock of the Company. The conversion price is equal to the
Variable Conversion price which is defined as 61% of the Market Price for the
lowest two trading dates during a fifteen-day trading period ending on the
latest complete trading date prior to the Conversion date. The note was paid

off on August 10, 2020.



On April 3, 2020, the Company and First Fire Global Opportunity Fund LLC,
entered into a security purchase agreement for a 8%  Senior Convertible
Promissory Note in the aggregate principal of $100,000 due on April 3, 2021. The
note is convertible into shares of common stock of the Company. The note can be
converted at any time after the issue date. The conversion price shall be equal
to the lower of the Fixed Conversion of $0.01per share or the Alternative
Conversion Price which is defined as 60% of the Market Price for the lowest
trading date during a twenty-day trading period ending on the latest complete
trading date prior to the Conversion date. The note was paid off by the ECO

of
the Company see Note 9.



On April 6, 2020, the Company and Power Up Lending Group entered into a security
purchase agreement for a 10% Convertible  Promissory Note in the aggregate
principal of $53,000 due on April 6, 2021. The note is convertible into shares
of common stock of the Company. The note can be converted (180) days following
the date of the note. The conversion price is equal to the Variable Conversion
price which is defined as 61% of the Market Price for the lowest two trading
dates during a fifteen-day trading period ending on the latest complete.
outstanding. The note was paid off by the CEO of the Company see Note 9.



                                      -21-

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On April 6, 2020, the Company and Power Up Lending Group entered into a security
purchase agreement for a 10% Convertible Note in the aggregate principal of
$53,000 due on April 6, 2021. The note is convertible into shares of common
stock of the Company. The conversion price is equal to the Variable Conversion
price which is defined as 61% of the Market Price for the lowest two trading
dates during a fifteen-day trading period ending on the latest complete trading
date prior to the Conversion date. The note was paid off on October10, 2020.

On April 7, 2020, the Company and Actus Fund, LLC entered into a security purchase agreement for a 12%



Convertible promissory in the aggregate principal of $197,000 due on February 7,
2021. The note is convertible into shares of The Company's common stock. The
conversion price shall equal the lessor of (i) Current Market Price, or (ii)
Variable Market price as defined as Market Price less a 50% discount price. As
of June 30, 2020, and through the date of this report, the principal balance
totaling $197,000 is outstanding.



On April 15, 2020, the Company and Platinum Point Capital entered into a
security purchase agreement for a 10% Convertible Note in the aggregate
principal of $$82,500 due on April 15, 2021. The note is convertible into shares
of common stock of the Company. The note can be converted at any time after the
issue date. The conversion price is equal to the Variable Conversion price which
is defined as 60% of the Market Price for the lowest trading date during
twenty-day trading period ending on the latest complete trading date prior to
the Conversion date. The note was paid off the CEO of the Company. See Note 9.



On May 20, 2020, the Company and GS Capital Partners, LLC entered into a 10%
Convertible Note in the aggregate principal of  $165,000 due on February 20,
2021. The note can be converted into shares of common stock of the Company. at
any time after the issue date, at a price of $0.01 per share. As of June 30,
2020, and through the date of this report, the principal balance totaling
$165,000 is outstanding. The note was paid off by CEO of the Company. see Note
9.



On June 29, 2020, the Company and Power Up Lending Group entered into a security
purchase agreement for a 10% Convertible Note in the aggregate principal of
$53,000 due on June 29, 2021. The note is convertible into shares of common
stock of the Company. The conversion price is equal to the Variable Conversion
price which is defined as 61% of the Market Price for the lowest two trading
dates during a fifteen-day trading period ending on the latest complete trading
date prior to the Conversion date. The note is outstanding at December 31, 2020.

On August 25, 2020, the Company and Power Up Lending Group entered into a security purchase agreement for a 10% Convertible Note in the aggregate principal of $103,000 due on August 25, 2021. The note is convertible into shares of common stock of the Company. The conversion price is equal to the Variable Conversion price which is defined as 61% of the Market Price for the lowest two trading dates during a fifteen-day trading period ending on the latest complete trading date prior to the Conversion date. The note is outstanding at December 31, 2020.





On October 6, 2020, the Company and Power Up Lending Group entered into a
security purchase agreement for a 10% Convertible Note in the aggregate
principal of $75,000 due on August 25, 2021. The note is convertible into shares
of common stock of the Company. The conversion price is equal to the Variable
Conversion price which is defined as 61% of the Market Price for the lowest two
trading dates during a fifteen-day trading period ending on the latest complete
trading date prior to the Conversion date. The note is outstanding at December
31, 2020.



Going Concern



The audited consolidated financial statements contained in this annual report on
Form 10-K have been prepared on the assumption that the Company will continue as
a going concern. The Company has accumulated losses from inception through the
period ended December 31, 2020, of $51,560,884 as well as negative cash flows
from operating activities. Furthermore, as of the date of this filing, the
Company does not have sufficient cash resources to achieve its goals through
December 31, 2021.



The consolidated financial statements do not include any adjustments that may be
necessary should the Company be unable to continue as a going concern. The
Company's continuation as a going concern is dependent on its ability to obtain
any additional financing required and ultimately to attain profitability. If the
Company raises additional funds through the issuance of equity, the percentage
ownership of current shareholders could be reduced, and such securities might
have rights, preferences, or privileges senior to the rights, preferences, and
privileges of the Company's common stock. Additional financing may not be
available upon acceptable terms. If adequate funds are not available on
acceptable terms, the Company may not be able to take advantage of prospective
business endeavors or opportunities, which could significantly and materially
restrict its future plans for developing its business and achieving commercial
revenues. If the Company is unable to obtain necessary capital, the Company may
have to cease operations.



Working Capital Deficiency



                      December 31,      December 31,
                          2020              2019
Current Assets        $         264     $     499,402
Current Liabilities      17,406,559         6,683,191
Working Capital       $ (17,403,295 )   $  (6,183,789 )




The decrease in current assets from 2019 to 2020 is due to an Decrease in cash
provided by financing activities. The increase in current liabilities is mainly
due to increases in Convertible Notes Payable and Notes Payable during the

year
ended December 31, 2020.

                                      -22-

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Cash Flow



                                                      Year Ended
                                            December 31,      December 31,
                                                2020              2019

Net cash used in operating activities $ (1,471,997 ) $ (1,472,279 ) Net cash used in investing activities

            (164,477 )         (26,282 )
Net cash provided by financing activities       1,143,336         1,983,863
Increase(decrease) in cash                  $    (493,138 )   $     485,302




Operating Activities



Net cash used in operating activities was $1,471,997 for the year ended December
31, 2020. Cash used during the year ended December 31, 2020 was primarily due to
the net loss of $12,606,540.



Net cash used in operating activities was $1,472,279 for the year ended December
31, 2019. Cash used during the year ended December 31, 2019 was primarily due to
the net loss of $3,292,522.



Investing Activities

For the year ended December 31, 2020, there was $(164,477) of cash used for investing activities.

For the year ended December 31, 2019, there was $(26,282) cash used for investing activities.





Financing Activities



For the years ended December 31, 2020, and 2019 net cash provided by financing
activities was $ 1,143,336 and $1,983,863. respectively. Cash provided by
financing activities was due to the proceeds from convertible payable and notes
payable.



Future Financing

We will require additional funds to implement our growth strategy for our business. In addition, while we have received capital from various private placements of equity and convertible debt that have enabled us to fund our operations, additional funds will be needed for further business development.



                                      -23-

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Off-Balance Sheet Arrangements





We have no off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures, or capital resources that are material to stockholders.



Effects of Inflation

We do not believe that inflation has had a material impact on our business, revenues, or operating results during the periods presented.

Critical Accounting Policies and Estimates





Our significant accounting policies are more fully described in the notes to our
financial statements included in this Annual Report on Form 10-K for the year
ended December 31, 2020. We believe that the accounting policies below are
critical for one to fully understand and evaluate our financial condition and
results of operations.



Recent Accounting Standards

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