DSG Global Inc. [DSGT] Filings

10-Q 1 form10-q.htm

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 Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____________ to _____________.

Commission file number 000-53988

DSG GLOBAL, INC.

(Exact name of registrant as specified in its charter)

Nevada

26-1134956

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

207 - 15272 Croydon Drive

Surrey, British Columbia, V3Z 6T3, Canada

(Address of principal executive offices, zip code)

(604) 575-3848

(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 preceding 12 months (or for such shorter period that the registrant was required to file such reports), 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions 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:

Title of each classes		Trading Symbols(s)		Name of each exchange on which registered
None		N/A		N/A

As at August 28, 2023 the issuer had 157,257,212 shares of common stock issued and outstanding.

DSG GLOBAL, INC.

TABLE OF CONTENTS

		Page No.
PART I — FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3

	Interim Condensed Consolidated Balance Sheets	4

	Interim Condensed Consolidated Statements of Operations and Comprehensive Loss	5

	Interim Condensed Consolidated Statements of Stockholders’ Deficit	7

	Interim Condensed Consolidated Statements of Cash Flows	8

	Notes to Interim Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60

Item 4.	Controls and Procedures	60

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	61

Item 1A.	Risk Factors	61

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	75

Item 3.	Defaults Upon Senior Securities	75

Item 4.	Mine Safety Disclosures	75

Item 5.	Other Information	75

Item 6.	Exhibits	76

Signatures		79

PART I: FINANCIAL INFORMATION

ITEM 1: Financial Statements (unaudited)

The accompanying unaudited interim condensed consolidated financial statements of DSG Global Inc. as at June 30, 2023, have been prepared by our management in conformity with accounting principles generally accepted in the United States of America and in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders’ equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

Operating results for the six-month period ended June 30, 2023, are not necessarily indicative of the results that can be expected for the year ending December 31, 2023.

DSG GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS AT JUNE 30, 2023, AND DECEMBER 31, 2022

(Expressed in U.S. dollars)

(UNAUDITED)

	June 30, 2023			December 31, 2022

ASSETS
CURRENT ASSETS
Cash	$	19,546		$	53,779
Trade receivables, net		353,381			711,028
Lease receivable		3,772			3,627
Inventories		865,149			1,204,577
Prepaid expenses and deposits		443,135			189,884
TOTAL CURRENT ASSETS		1,684,983			2,162,895

Lease receivable		14,052			15,918
Fixed assets, net		18,534			25,546
Right-of-use assets, net		266,144			29,561
Intangible assets, net		9,761			10,376
TOTAL ASSETS	$	1,993,474		$	2,244,296

LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Trade and other payables	$	4,872,259		$	3,356,256
Deferred revenue		512,321			481,474
Lease liability		86,350			35,670
Due to related party		55,334			-
Loans payable		2,550,370			2,416,692
Convertible notes payable		2,719,488			2,719,514
TOTAL CURRENT LIABILITIES		10,796,122			9,009,606

Lease liability		203,289			4,982
Loans payable		150,000			150,000
TOTAL LIABILITIES		11,149,411			9,164,588

Contingencies (Note 16)		-			-

MEZZANINE EQUITY
Redeemable preferred stock, $0.001 par value, 24,010,000 shares authorized (2022 – 24,010,000), 52,451 issued and outstanding, 1,118 to be issued (2022 – 52,023 issued and outstanding, 860 to be issued)		3,157,555			2,635,345

STOCKHOLDERS’ DEFICIT
Preferred stock, $0.001 par value, 3,010,000 shares authorized (2022 – 3,010,000), 200,750 issued and outstanding (2022 – 200,780 issued and outstanding)		2,874,180			3,087,180
Common stock, $0.001 par value, 1,000,000,000 shares authorized, (2022 – 350,000,000); 154,413,610 issued and outstanding (2022 – 145,429,993)		154,414			145,430
Additional paid in capital, common stock		51,209,956			50,916,150
Discounts on common stock		(69,838	)		(69,838	)
Obligation to issue warrants		261,934			261,934
Accumulated other comprehensive income		1,345,593			1,345,593
Accumulated deficit		(68,089,731	)		(65,242,086	)
TOTAL STOCKHOLDERS’ DEFICIT		(12,313,492	)		(9,555,637	)

TOTAL LIABILITIES MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT	$	1,993,474		$	2,244,296

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

DSG GLOBAL, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Expressed in U.S. dollars)

(UNAUDITED)

	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
	Three months ended						Six months ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022

Revenue	$	1,016,037		$	1,174,878		$	1,315,485		$	1,919,129
Cost of revenue		395,285			814,882			545,377			1,301,839
Gross profit		620,752			359,996			770,108			617,290

Operating expenses
Compensation expense		321,644			1,211,309			684,562			1,667,263
General and administration expense		755,452			566,176			1,665,851			1,244,665
Research and development		-			36,750			-			36,750
Bad debt expense		-			-			104,124			12,482
Inventory write-down		64,680			-			64,680			-
Depreciation and amortization expense		2,779			3,093			5,770			6,230
Total operating expenses		1,144,555			1,817,328			2,524,987			2,967,390
Loss from operations		(523,803	)		(1,457,332	)		(1,754,879	)		(2,350,100	)

Other income (expense)
Foreign currency exchange		(2,401	)		1,721			(6,225	)		(26,712	)
Loss on sale of lease receivable		-			(3,923	)		-			(3,923	)
Gain on lease modification		-			-			6,932
Gain on extinguishment of debt		-			-			-			10,240
Gain on disposal		-			-			-			3,960
Redemption premium on preferred shares		-			-			-			(3,062	)
Finance costs		(551,389	)		(527,937			(1,093,473	)		(1,084,549	)
Total other income (expense)		(553,790	)		(530,139	)		(1,092,766	)		(1,104,046	)
Net loss	$	(1,077,593	)	$	(1,987,471	)	$	(2,847,645	)	$	(3,454,146	)

Net loss per share
Basic and diluted	$	(0.01	)	$	(0.02	)	$	(0.02	)	$	(0.03	)

Weighted average number of shares used in computing basic and diluted net income (loss) per share:
Basic and diluted		153,344,790			131,515,955			154,413,610			130,622,598

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

DSG GLOBAL, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Expressed in U.S. dollars)

(UNAUDITED)

	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
	Three months ended						Six months ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022

Net loss	$	(1,077,593	)	$	(1,987,471	)	$	(2,847,645	)	$	(3,454,146	)
Other comprehensive (loss) income

Foreign currency translation adjustments		-			(27,236	)		-			(50,285	)

Comprehensive loss		(1,077,593	)		(1,960,235	)		(2,847,645	)		(3,403,861	)

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements

DSG GLOBAL, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT FOR THE

THREE AND SIX MONTHS ENDED JUNE 30, 2023

(Expressed in U.S. dollars)

(UNAUDITED)

	Shares		Amount		Additional paid in capital		Discount on common stock			To be issued			Obligation to issue warrants		Shares			Par value		Additional paid in capital			To be issued		Accumulated other comprehensive income		Accumulated deficit			Total stockholders’ deficit
	Common Stock														Preferred Stock (equity)
	Shares		Amount		Additional paid in capital		Discount on common stock			To be issued			Obligation to issue warrants		Shares			Par value		Additional paid in capital			To be issued		Accumulated other comprehensive income		Accumulated deficit			Total stockholders’ deficit
Balance, December 31, 2021		128,345,183	$	128,345	$	50,068,418	$	(69,838	)	$	19,647		$	261,934		200,454		$	200	$	1,199,280		$	-	$	1,289,564	$	(57,694,695	)	$	(4,797,145	)

Shares issued for debt settlement		500,000		500		46,500		-			(500	)		-		-			-		-			-		-		-			46,500
Shares and warrants issued for services		660,000		660		114,100		-			(19,147	)		-		-			-		-			-		-		-			95,613
Dividends		-		-		455,500		-			-			-		-			-		-			-		-		-			455,500
Shares issued on conversion of preferred shares		2,010,772		2,011		66,308		-			-			-		-			-		-			-		-		-			68,319
Net loss for the period		-		-		-		-			-			-		-			-		-			-		23,049		(1,466,675	)		(1,443,626	)
Balance, March 31, 2022		131,515,955	$	131,516	$	50,705,826	$	(69,838	)	$	-		$	261,934		200,454		$	200	$	1,199,280			-	$	1,312,613	$	(59,161,370	)	$	(5,574,839	)

Shares issued for services		-		-		-		-			-			-		105			-		777,000			-		-		-			777,000
Net loss for the period		-		-		-		-			-			-		-			-		-			-		27,236		(1,960,235	)		(1,987,471	)
Balance, June 30, 2022		131,515,955	$	131,516	$	50,705,826	$	(69,838	)	$	-		$	261,934		200,559		$	200	$	1,976,280			-	$	1,339,849	$	(61,148,841	)	$	(6,758,074	)

Balance, December 31, 2022		145,429,993	$	145,430	$	50,916,150	$	(69,838	)	$	-		$	261,934		200,780		$	200	$	3,086,980			-	$	1,345,593	$	(65,242,086	)	$	(9,555,637	)

Shares issued on conversion of preferred shares		8,983,617		8,984		293,806		-			-			-		(30	)		-		(213,000	)		-		-		-			89,790
Net loss for the period		-		-		-		-			-			-		-			-		-			-		-		(1,770,052	)		(1,770,052	)
Balance,March 31, 2023		154,413,610	$	154,414	$	51,209,956	$	(69,838	)	$	-		$	261,934		(200,750	)	$	200	$	2,873,980			-	$	1,345,593	$	(67,012,138	)	$	(11,235,899	)

Net loss for the period		-		-		-		-			-			-		-			-		-			-		-		(1,077,593	)		(1,077,593	)
Balance,June 30, 2023		154,413,610	$	154,414	$	51,209,956	$	(69,838	)	$	-		$	261,934		(200,750	)	$	200	$	2,873,980			-	$	1,345,593	$	(68,089,731	)	$	(12,313,492	)

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

DSG GLOBAL INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023, AND 2022

(Expressed in U.S. Dollars)

(UNAUDITED)

	June 30, 2023			June 30, 2022

Net loss	$	(2,847,645	)	$	(3,454,146	)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,771			70,189
Change in ROU assets		42,646			-
Accretion of discounts on debt		-			315,065
Loss on sale of lease receivable		-			3,923
Gain on lease modification		(6,932	)		-
Bad debt expense		104,124			12,482
Accretion on lease liability		-			27,224
Gain on extinguishment of debt		-			(10,240	)
Preferred shares issued for services		-			777,000
Shares and warrants issued for services		-			76,276
Unrealized foreign exchange loss		101			2,997
Inventory write down		64,680			-
Gain on asset disposal		-			(3,960	)

Changes in non-cash working capital:
Trade receivables, net		255,942			(177,714	)
Inventories		274,748			110,467
Prepaid expense and deposits		(253,251	)		183,783
Lease receivable		(698	)		(21,641	)
Trade payables and accruals		1,516,003			1,629,447
Deferred revenue		30,847			213,458
Lease liabilities		(21,581	)		(101,051	)
Interest on mandatorily redeemable preferred shares		-			3,062
Net cash used in operating activities		(835,245	)		(343,399	)

Cash flows from investing activities
Purchase of equipment		-			(8,892	)
Disposal of property and equipment		-			10,225
Net cash provided by investing activities		-			1,333

Cash flows from financing activities
Proceeds from issuing preferred shares, and shares to be issued		612,000			250,000
Proceeds from related party loans payable		71,570			-
Proceeds from loans payable		159,986			500,000
Proceeds from sale of lease receivable		-			863,527
Payments on related party loans payable		(14,236	)		-
Payments on loans payable		(26,307	)		(20,411	)
Net cash provided by financing activities		803,013			1,593,116

Effect of exchange rate changes on cash		(2,001	)		50,285

Net increase (decrease) in cash		(34,233	)		1,301,335
Cash at beginning of period		53,779			275,383

Cash at the end of the period	$	19,546		$	1,576,718

Supplemental Cash Flow Information (Note 17)

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

DSG GLOBAL, INC.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

(UNAUDITED)

Note 1 – ORGANIZATION

DSG Global, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on September 24, 2007.

The Company is a technology development company engaged in the design, manufacture, and marketing of fleet management solutions in the golf industry. The Company’s principal activities are the sale and rental of GPS tracking devices and interfaces for golf vehicles and related support services. Starting during the year ended December 31, 2021, the Company began to market low speed electric vehicles, and e-bikes, recognizing its first sales in this space. Sales from these product lines have not reached a level of materiality to be disclosed as separate segments of the business. The Company also began the start of the homologation project for electric vehicles.

On April 13, 2015, the Company entered into a share exchange agreement with DSG Tag Systems Inc. (“DSG”), now a wholly-owned subsidiary of the Company, incorporated under the laws of the State of Nevada on April 17, 2008 and extra provincially registered in British Columbia, Canada in 2008. In March 2011, DSG formed DSG Tag Systems International, Ltd. in the United Kingdom (“DSG UK”). DSG UK is a wholly owned subsidiary of DSG.

On September 15, 2020, the Company incorporated Imperium Motor Corp. (“Imperium”), under the laws of the State of Nevada on September 10, 2020, for which it subscribed to all authorized capital stock, 100 shares of Preferred Class A Stock, at a price of $0.001 per share. Imperium is a wholly owned subsidiary of the Company.

On August 12, 2021, the Company incorporated Imperium Motor of Canada Corporation (“Imperium Canada”), under the laws of British Columbia, Canada, for which it subscribed to all authorized capital stock, 100 shares of Class A Voting Participating common shares, at a price of $0.10 per share. Imperium Canada is a wholly owned subsidiary of the Company.

On September 17, 2021, the Company incorporated AC Golf Carts, Inc. (“AC Golf Carts”), under the laws of the State of Nevada, for which it subscribed to all authorized stock, 100 common shares at a price of $0.001 par value per share. AC Golf Carts is a wholly owned subsidiary of the Company.

On January 5, 2023, Imperium Motor Corp. had its name changed to Liteborne Motor Corporation.

Note 2 – GOING CONCERN

These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders and note holders, the ability of the Company to obtain necessary equity financing to continue operations, and ultimately the attainment of profitable operations.

As of June 30, 2023, the Company had working capital deficit of $9,111,139 and had an accumulated deficit of $68,089,731 since inception. Furthermore, the Company incurred a net loss of $2,847,645 and used $835,245 of cash flows for operating activities during the six months ended June 30, 2023. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These unaudited interim condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These adjustments could be material.

Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying interim condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) and with the instructions to Form 10-Q.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to U.S. GAAP rules and regulations for presentation of interim financial information. Therefore, the unaudited interim condensed consolidated financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on the Form 10-K for the year ended December 31, 2022. Current and future financial statements may not be directly comparable to the Company’s historical financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Principles of Consolidation

The interim condensed consolidated financial statements include the accounts of DSG Global Inc., its subsidiary VTS, and its wholly owned subsidiaries Liteborne Motor Corp., DSG Tag Systems Inc., DSG UK, and AC Golf Carts, collectively referred to as the “Company”. All intercompany accounts, transactions and profits were eliminated in the consolidated financial statements.

Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined. There were no new estimates in the period.

Recently Adopted Accounting Pronouncements

Recent accounting pronouncements issued by FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s interim condensed consolidated financial statements.

Significant Accounting Policies

Revenue from Contracts with Customers

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product to a customer. Revenue is measured based on the consideration the Company expects to receive in exchange for those products. In instances where final acceptance of the product is specified by the customer, revenue is deferred until all acceptance criteria have been met. Revenues are recognized under Topic 606 in a manner that reasonably reflects the delivery of its products and services to customers in return for expected consideration and includes the following elements:

	●	executed contracts with the Company’s customers that it believes are legally enforceable;
	●	identification of performance obligations in the respective contract;
	●	determination of the transaction price for each performance obligation in the respective contract;
	●	allocation the transaction price to each performance obligation; and
	●	recognition of revenue only when the Company satisfies each performance obligation.

Accounts Receivable and provision for current expected credit losses (“CECLs”)

All accounts receivable under standard terms are due thirty (30) days from the date billed. If the funds are not received within thirty (30) days, the customer is contacted to arrange payment. The company assesses its receivables at each period end in accordance with ASC 326-20. This exercise requires considerable judgement, including consideration of how changes in economic factors affect CECLs which are determined on a probability-weighted basis. The Company measures provision for ECLs on its trade receivables at an amount equal to lifetime ECLs.

Performance Obligations and Signification Judgments

The Company’s revenue streams can be categorized into the following performance obligations and recognition patterns:

1. Sale, delivery and installation of Tag, Text and Infinity products, along with digital mapping and customer training. The Company recognizes revenue at a point in time when final sign-off on the installation is obtained from the General Manager and/or Director of Golf.

2. Provision of internet connectivity, regular software updates, software maintenance and basic customer support service. The Company recognizes revenue over time, evenly over the term of the service.

3. Sale and delivery of Fairway Rider products. The Company recognizes revenue at a point in time when control transfers to the customer.

4. Sale and delivery of Electric Vehicles. The Company recognizes revenue at a point in time when control transfers to the customer.

Transaction prices for performance obligations are explicitly outlined in relevant agreements, therefore, the Company does not believe that significant judgments are required with respect to the determination of the transaction price, including any variable consideration identified.

Warranty Reserve

The Company accrues for warranty costs, sales returns, and other allowances based on its historical experience. During the period ended June 30, 2023 and the comparable period of June 30, 2022, the Company did not provide a warranty for any of its products sold during those periods. The warranty reserve was $Nil as at June 30, 2023 and 2022.

Re-classification

During the period ended June 30, 2022, the Company re-classified dividends that were accrued on its redeemable preferred shares during the year ended December 31, 2021. An amount of $455,500 was re-classified from additional paid in capital on common stock, to additional paid in capital preferred stock – mezzanine equity (Note 13). This change is reflected in the interim condensed consolidated statement of changes in stockholders’ deficit.

Note 4 – TRADE RECEIVABLES, NET

As of June 30, 2023, and December 31, 2022, trade receivables consist of the following:

SCHEDULE OF TRADE RECEIVABLES

	June 30, 2023			December 31, 2022
Accounts receivable	$	440,235		$	711,028
Allowance for doubtful accounts		(86,854	)		-
Total trade receivables, net	$	353,381		$	711,028

Note 5 – INVENTORIES

As of June 30, 2023, and December 31, 2022, finished goods inventories consist of the following:

SCHEDULE OF INVENTORIES

	June 30, 2023		December 31, 2022
Parts and accessories	$	87,638	$	217,582
Golf carts		664,581		799,035
E-bikes		112,930		123,280
Electric vehicles		-		64,680
Total inventories	$	865,149	$	1,204,577

During the period ended June 30, 2023, the Company recorded an inventory write-down of $64,680 on the Electric Vehicles that they hold. These vehicles are low speed electric vehicles that were imported from China and have been going through homologation since the year ended December 31, 2021. Due to the Company being unsure if these vehicles will now clear the approval process to be used in North America, they have been written down in their full amount.

Note 6 – FIXED ASSETS

As of June 30, 2023, and December 31, 2022, fixed assets consisted of the following:

SCHEDULE OF FIXED ASSETS

	June 30, 2023			December 31, 2022
Machinery	$	5,040		$	5,040
Furniture and equipment		2,403			2,587
Computer equipment		47,312			50,781
Vehicles		18,450			19,989
Fixed assets, gross		18,450			19,989
Accumulated depreciation		(54,671	)		(52,851	)
Fixed assets, net	$	18,534		$	25,546

For the three and six months ended June 30, 2023, total depreciation expense for fixed assets was $2,779 and $5,770, respectively (June 30, 2022 - $3,093 and $6,230, respectively) and is included in depreciation and amortization expense.

Note 7 – INTANGIBLE ASSETS

As of June 30, 2023, and December 31, 2022, intangible assets consist of the following:

SCHEDULE OF INTANGIBLE ASSETS

	June 30, 2023			December 31, 2022
Intangible asset – Patent	$	22,353		$	22,353
Accumulated amortization		(12,592	)		(11,977	)
Intangible asset, net	$	9,761		$	10,376

Patents are amortized on a straight-line basis over their estimated useful life of 20 years. For the three and six months ended June 30, 2023, total amortization expense for intangible assets was $307 and $614, respectively (June 30, 2022 - $307 and $614, respectively).

Note 8 – TRADE AND OTHER PAYABLES

As of June 30, 2023, and December 31, 2022, trade and other payables consist of the following:

SCHEDULE OF TRADE AND OTHER PAYABLES

	June 30, 2023		December 31, 2022
Accounts payable and accrued expenses	$	2,025,234	$	1,462,557
Accrued interest		2,826,669		1,880,462
Other liabilities		20,356		12,236
Total payables	$	4,872,259	$	3,356,256

Note 9 – LOANS PAYABLE

As of June 30, 2023, and December 31, 2022, loans payable consisted of the following:

SCHEDULE OF LOANS PAYABLE

	June 30, 2023			December 31, 2022
Unsecured loan payable in the amount of CAD$40,000, due on or before December 31, 2025^(a)	$	30,187		$	29,520
Unsecured loan payable in the amount of CAD$40,000, due on or before December 31, 2025^(a)	$	30,187		$	29,520
Unsecured loan payable in the amount of CAD$40,000, due on or before December 31, 2025^(b)		30,187			29,520
Secured loan payable, due on June 5, 2050, interest at 3.75% per annum^(c)		150,000			150,000
Unsecured loan payable, due on December 1, 2025, interest at 10% per annum^(d)		1,000,000			1,000,000
Preferred F series shares issued with mandatory redemption^(f)		1,331,344			1,357,652
Unsecured loan payable ^(g)		159,985			-
Foreign exchange		(1,333	)		-
Total		2,700,370			2,566,692
Current portion		(2,550,370	)		(2,416,692	)
Loans payable, Long term	$	150,000		$	150,000

(a)	On April 17, 2020, the Company received a loan in the principal amount of $30,187 (CAD$40,000) under the Canada Emergency Business Account program. The loan is non-interest bearing and eligible for CAD$10,000 forgiveness if repaid by December 31, 2022. If not repaid by December 31, 2022, the loan bears interest at 5% per annum and is due on December 31, 2025. During the three and six months ended June 30, 2023, the Company recorded $504 and $1,003 in interest expense.

(b)	On April 21, 2020, the Company received a loan in the principal amount of $30,187 (CAD$40,000) under the Canada Emergency Business Account program. The loan is non-interest bearing and eligible for CAD$10,000 forgiveness if repaid by December 31, 2022. If not repaid by December 31, 2022, the loan bears interest at 5% per annum and is due on December 31, 2025. During the three and six months ended June 30, 2023, the Company recorded $504 and $1,003 in interest expense.

(c)	On June 5, 2020, the Company received a loan in the principal amount of $150,000. The loan bears interest at 3.75% per annum and is due on June 5, 2050. The loan is secured by all tangible and intangible assets of Company. Fixed payments of $731 are due monthly and begin 12 months from the date of the loan. The payments are applied against any accrued interest before principal amounts are repaid.

(d)	On December 1, 2022, the Company received a loan in the principal amount of $1,000,000. The loan bears interest at 10% per annum and is due on December 1, 2025. If not repaid by December 31, 2025, the loan bears interest at 18% per annum.

(e)	On September 13, 2021, the Company entered into a securities purchase agreement with a non-related party. Pursuant to the agreement, the Company received cash proceeds of $2,000,000 on September 13, 2021 in exchange for the issuance of an unsecured convertible promissory note in the principal amount of $2,400,000, which was inclusive of a $400,000 original issue discount and bears interest at 9% per annum to the holder and matures June 20, 2022. If the convertible note is not paid in full before December 12, 2021, an additional $100,000 of guaranteed interest will be added to the note. An additional $100,000 of guaranteed interest will be added to the note on the 12th day of each succeeding month during which any portion of the convertible note remains unpaid. Any principal or interest on the convertible note that was not paid when due or during any period of default bears interest at 24% per annum.

	In the event of a default, the note is convertible at the price that is equal to a 40% discount to the lowest trading price of the Company’s common shares during the 30 day trading period prior to the conversion date.

	During the three and six months ended June 30, 2023, the Company recorded $445,600 and $889,600 in interest expense including $300,000 and $600,000 of additional interest, respectively. As at June 30, 2023, the carrying value of the convertible promissory note was $2,400,000 (December 31, 2022 - $2,400,000). As the note is now in default, it has become convertible. See Note 10.

(f)	On February 17, 2022, the Company entered into a Waiver of Conditions (the “Waiver”) to the Share Purchase Agreement (the “SPA”) dated December 13, 2021. The Company has received five payments in the amount of $250,000 on February 28, 2022, $250,000 on March 31, 2022, $90,000 on July 29, 2022, $250,000 on August 29, 2022, $125,000 on September 15, 2022, $125,000 on October 18, 2022, and $285,000 on October 21, 2022, for 1,375 preferred series F shares in total. Under the Waiver, the Company agrees to repay these amounts, on an ongoing basis, by remitting 20% of all gross sales back to the subscriber until such time that the 500 shares of the Series F Preferred Stock issued pursuant to this Waiver agreement are redeemed in full. As these preferred F series shares subscribed for under the Waiver are mandatorily redeemable, the total amounts of $1,375,000 were recorded as liabilities, as per ASC 480-10. Under the original terms of the SPA, redemption of preferred F series shares requires a 15% premium payment on the face value. As such, a total Redemption Premium of $75,000 will be paid on the redemption as part of the 20% gross sales remittance, and will be amortized as the repayments are made.

	During the six months ended June 30, 2023, the Company made required payments in the amount of $26,307, which was applied against the loan payable.

(g)	On May 26, 2023, the Company entered into a loan agreement with a non-related party for an amount of up to $327,390. The loan is non-interest bearing; however, the creditor will share 50/50 in the net profit from specified sales. The loan was provided to the Company for specific trade payables required to generate the sales for which the creditor will share in the net profit. As at June 30, 2023, the Company had borrowed $159,985 on the loan. As at June 30, 2023, no sales had been made related to the split profit agreement. There is no maturity rate on the loan.

Note 10 – CONVERTIBLE NOTES

As of June 30, 2023, and December 31, 2022, convertible loans payable consisted of the following:

Third Party Convertible Notes Payable

(a)	On March 31, 2015, the Company issued a convertible promissory note in the principal amount of $310,000 to a company owned by a former director of the Company for marketing services. The note is unsecured, bears interest at 5% per annum, is convertible at $1.25 per common share, and is due on demand. As at June 30, 2023, the carrying value of the convertible promissory note was $310,000 (December 31, 2022 - $310,000).

(b)	On June 5, 2017, the Company issued a convertible promissory note in the principal amount of $110,000. As at June 30, 2023, the carrying value of the note was $9,488 (December 31, 2022 - $9,488), relating to an outstanding penalty.

(c)	As per Note 9 (e) above, the $2,400,000 convertible note went into default, and therefore it has become convertible at the holder’s request. The fair value of the loan approximates carrying value as it is now short term in nature, effectively due on demand.

Note 11 - LEASES

Lessor

During the six months ended June 30, 2023, the Company recognized new lease receivables of $nil, net of the $nil of leases transferred to third party management (December 31, 2022 - $143,630 net of $nil of leases transferred to third party management). The lease receivable reflects lease payments expected to be received over the terms of the agreements and derecognized $nil (December 31, 2022 - $12,240) in inventory related to the underlying assets, being recorded to cost of goods sold. During the year ended December 31, 2022, the Company sold $867,450 of lease receivables to a third party for $863,527. As a result of the sale, the Company derecognized the carrying value of $867,450 for the leases sold on the date of the transaction and recognized a loss of $3,923 in other income and expenses.

Lease receivable	June 30, 2023			December 31, 2022
Balance, beginning of the period	$	19,545		$	810,236
Additions		-			143,630
Transfer to third party		-			(867,450	)
Interest on lease receivables		1,505			20,841
Receipt of payments		(3,226	)		(81,979	)

Foreign exchange		-			(5,733	)
Balance, end of the period		17,824			19,545
Current portion of lease receivables		(3,772	)		(3,627	)
Long term potion of lease receivables	$	14,052		$	15,918

Lease receivables are measured at the commencement date based on the present value of future lease payments less the present value of the unguaranteed residual asset. The Company uses the rate implicit in the rental revenue contracts to calculate the present value of future payments and unguaranteed residual asset at the date of commencement.

Lessee

The Company leases certain assets under lease agreements.

On October 1, 2019, the Company entered into a 5-year lease agreement for a photocopier (the “Copier Lease”). Upon recognition of the lease, the Company recognized right-of-use assets of $8,351 and lease liabilities of $8,351. As of June 30, 2023, the Copier Lease had a remaining term of 1.25 years, a net asset value of $2,574 and lease liability of $2,574. Lease expense for the period ended June 30, 2023 was $911.

On July 10, 2020, the Company entered into a lease agreement for retail, showroom and warehouse space in Fairfield, CA (the “Fairfield Lease”). Upon initial recognition of the lease, the Company recognized right-of-use assets of $164,114 and lease liabilities of $156,364. The difference between the recorded lease assets and lease liabilities is due to prepaid rent deposits to be applied to first months’ rent of $7,750. The lease included a rent-free period with rent payments commencing on October 1, 2020. On August 10, 2022, the lease ended.

On July 14, 2020, the Company entered into a lease agreement for office space in Surrey, BC (the “Croydon Lease”). Upon initial recognition of the lease, the Company recognized right-of-use assets of $133,825 (CAD$175,843) and lease liabilities of $125,014 (CAD$163,895). The difference between the recorded lease assets and lease liabilities is due to prepaid rent deposits to be applied to first months’ rent of $8,811 (CAD$11,948). The lease included a rent-free period with rent payments commencing on September 1, 2020. As of June 30, 2023, the Croydon Lease had a remaining term of 0.08 years. On March 1, 2023, the Company entered into a new lease for a portion of the existing office space. As this new agreement would be for a previously leased space with no additional rights granted, it would be accounted for as a modification of the existing lease. The company recognized an additional $124,729 (CAD$168,787) in right-of-use assets and lease liabilities, and recorded a gain on lease modification of $6,932. As at the period ended June 30, 2023, the remaining lease term was 3.08, the net asset value was $114,511 and the remaining lease liability was $120,088.

The new lease has a commencement date of August 1, 2023 for a term of three years. The annual base rent for the premises starts at CAD$44,160, with additional rent of CAD$1,380 per month for operating expenses. The lease contains two rights to renew, each for an additional three-year term, if written notice is provided no later than 9 months prior to the expiration of the current term.

On April 1, 2021, the Company entered into a lease agreement for a credit card processing machine (the “FD 150 Lease”). Upon initial recognition of the lease, the Company recognized right-of-use assets of $1,018 and lease liabilities of $1,018. As of June 30, 2023, the FD 150 Lease had a remaining term of 0.83 year, a net asset value of $289 and lease liability of $281.

On June 2, 2021, the Company entered into a lease agreement for a trailer (the “Trailer Lease”). Upon recognition of the lease, the Company recognized right-of-use assets of $8,886 (CAD$11,016) and lease liabilities of $8,886 (CAD$11,016). As of June 30, 2023, the Trailer Lease had a remaining term of 1.92 years, a net asset value of $4,943 and lease liability of $4,477.

On March 1, 2023, the Company entered into a lease agreement for additional office and warehouse space in Surrey, BC in the same location as our initial office space. Upon initial recognition of the lease, the Company recognized right-of-use assets of $162,291 (CAD$220,062) and lease liabilities of $162,291 (CAD$220,062). The lease contains two rights to renew, each for an additional two year term, if written notice is provided no later than 9 months prior to the expiration of the current term. The annual base rent for the premises starts at CAD$65,760, with additional rent of CAD$1,827 per month for operating expenses. The lease includes a rent-free period with rent payments commencing on June 1, 2023. As of June 30, 2023, the lease had a remaining term of 2.92 years, a net asset value of $143,827 and lease liability of $162,219.

Right-of-use assets:

Right-of-use assets	June 30, 2023			December 31, 2022
Opening	$	312,318		$	312,318
Derecognition of leases		(298,579	)
Recognition of new leases		287,020			-
Accumulated amortization		(39,131	)		(282,251	)
Foreign exchange		4,516			(506	)
Total right-of-use assets, net	$	266,144		$	29,561

Lease liability	June 30, 2023		December 31, 2022
Current portion	$	86,350	$	35,670
Long-term portion		203,289		4,982
Total lease liability	$	289,639	$	40,652

Lease liabilities are measured at the commencement date based on the present value of future lease payments. As the Company’s leases did not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The Company used a weighted average discount rate of 11.98% in determining its lease liabilities. The discount rate was derived from the Company’s assessment of borrowings.

Right-of-use assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option.

Lease expense for the six months ended June 30, 2023, was $47,473 (2022 - $70,866) and is recorded in general and administration expense. Also recognized is a $11,717 gain on lease modification that, when viewed with the loss on ROU modification of $4,785, results in the net gain on lease modification of $6,932 as presented on the interim condensed consolidated statements of operations and comprehensive loss.

Future minimum lease payments to be paid by the Company as a lessee for leases as of June 30, 2023, for the next four years are as follows:

Lease commitments and lease liability	June 30, 2023
2023	$	57,181
2024		115,593
2025		113,680
2026		47,248
Total future minimum lease payments		333,702
Discount		(44,063	)
Total		289,639

Current portion of lease liabilities		(86,350	)
Long-term portion of lease liabilities	$	203,289

Note 12 – MEZZANINE EQUITY

Authorized

5,000,000 shares of redeemable Series C preferred shares, authorized, each having a par value of $0.001 per share. Each share of Series C preferred shares is convertible into shares of common stock at a conversion rate equal to the lowest traded price for the fifteen trading days immediately preceding the date of conversion.

1,000,000 shares of redeemable Series D preferred shares, authorized, each having a par value of $0.001 per share. Each share of Series D preferred shares is convertible into 5 shares of common stock.

5,000,000 shares of redeemable Series E preferred shares, authorized, each having a par value of $0.001 per share. Each share of Series E preferred shares is convertible into 4 shares of common stock.

10,000 shares of redeemable Series F preferred shares, authorized, each having a par value of $0.001 per share. Each share of Series F preferred shares is convertible into common stock at an amount equal to the lesser of (a) one hundred percent of the lowest traded price for the Company’s stock for the fifteen trading days immediately preceding the relevant Conversion and (b) a twenty percent discount to the price of the common stock in an offering with gross proceeds of at least $10,000,000.

The following table summarizes the Company’s redeemable preferred share activities for the three and six months ended June 30, 2023, and for the comparative June 30, 2022 periods.

	Shares			Par		Additional paid in capital			To be issued			Total
Balance December 31, 2021		50,804		$	51	$	2,201,786		$	975,373		$	3,177,210
Issuance		250			-		-			250,000			250,000
Converted for common shares		(140	)		-		(68,319	)		(33,808	)(2)		(102,127	)
Accrued preferred stock dividends⁽¹⁾		-			-		(539,213	)		83,713			(455,500	)
Balance, March 31, 2022		50,914			51		1,594,254			1,275,278			2,869,583
Issuance		250			-		250,000			(250,000	)		-
Accrued preferred stock dividends		-			-		(89,727	)		89,727			-
Balance, June 30, 2022		51,164		$	51	$	1,754,527		$	1,115,005		$	2,869,583
Balance December 31, 2022		52,023		$	51	$	1,775,166		$	860,128		$	2,635,345
Issuance		612			1		611,999			-			612,000
Converted for common shares		(184	)		-		(89,790	)		-			(89,790	)
Accrued preferred stock dividends		-			-		(129,314	)		129,314			-
Balance, March 31, 2023		52,451		$	52	$	2,168,061		$	989,442		$	3,157,555
Balance		52,451		$	52	$	2,168,061		$	989,442		$	3,157,555
Accrued preferred stock dividends					-		(128,765	)		128,765			-
Balance, June 30, 2023		52,451		$	52	$	2,039,296		$	1,118,207		$	3,157,555
Balance		52,451		$	52	$	2,039,296		$	1,118,207		$	3,157,555

(1)	The amount of $539,213 accrued against additional paid in capital includes the $455,500 of accrued dividends on redeemable preferred stock related to the year ended December 31, 2021, and is the reclass described above in Note 3.

(2)	$33,808 was a balance carried in the redeemable preferred shares to be issued from prior years, but does not relate to any shares that are required to be issued. It should have been cleared out in fiscal 2019 when the Company completed its reverse stock split. It has been adjusted in the three months ended March 30, 2022.

Mezzanine Preferred Equity Transactions

During the six months ended June 30, 2023:

	●	184 Series F Preferred Shares were converted into common shares (see note 14).

	●	On January 18, 2023, pursuant to the January 2023 Series F SPA, the Company received $300,000 for the subscription of 300 Series F preferred shares.

	●	On January 23, 2023, pursuant to the January 2023 Series F SPA, the Company received $312,000 for the subscription of 312 Series F preferred shares.

During the year ended December 31, 2022:

	●	620 Series F Preferred Shares were converted into common shares (see note 14).

	●	On October 21, 2022, pursuant to the December 2021 Series F SPA, the Company received $410,000 for the subscription of 410 Series F preferred shares (see note 9(f)), as well as issued 96 Series F preferred shares to settle $96,000 in dividends payable.

	●	On September 15, 2022, pursuant to the December 2021 Series F SPA, the Company received $125,000 for the subscription of 125 Series F preferred shares (see note 9(f)). The shares were issued on October 18, 2022.

	●	On August 26, 2022, pursuant to the December 2021 Series F SPA, the Company received $250,000 for the subscription of 250 Series F preferred shares (see note 9(f)).

	●	On July 29, 2022, pursuant to the December 2021 Series F SPA, the Company received $90,000 for the subscription of 90 Series F preferred shares, as well as issued 368 Series F preferred shares to settle $368,000 in dividends payable.

	●	On March 31, 2022, pursuant to the December 2021 Series F SPA, the Company received $250,000 for the subscription of 250 Series F preferred shares (see note 9(f)). The shares were issued on April 1, 2022.

	●	On February 7, 2022, pursuant to the December 2021 Series F SPA, the Company received $250,000 for the subscription of 250 Series F preferred shares (see note 9(f)).

	●	On January 4, 2022, pursuant to the December Series 2021 F SPA, the Company received $250,000 for the subscription of 250 Series F preferred shares (see note 9(f)). These shares were issued April 1, 2022 and recorded as such.

Mezzanine preferred equity, series C and series F, carry a dividend policy which entitles each preferred share to receive, and the Company to pay, cumulative dividends of 10% per annum, payable quarterly, beginning on the original issuance date and ending on the date that such preferred shares has been converted or redeemed. At the option of the Company, accrued dividends can be settled in preferred shares of the same series, or in cash. Any dividends that are not paid quarterly on the dividend payment date shall entail a late fee, which must be paid in cash at the rate of 18% per annum, which accrues and compounds daily from the dividend payment date, through to and including the date of the actual payment in full. As at June 30, 2023 the Company recorded $258,079 in dividends to be settled in preferred shares, and $81,728 in penalty interest.

Note 13 – PREFERRED STOCK

Authorized

3,000,000 shares of Series A preferred shares authorized each having a par value of $0.001 per share.

10,000 shares of Series B convertible preferred shares authorized each having a par value of $0.001 per share. Each share of Series B convertible preferred shares is convertible into 100,000 shares of common stock.

Preferred Stock Transactions

During the six months ended June 30, 2023:

●

30 Series B preferred shares were converted into 3,000,000 common shares with a fair value of $213,000 (see note 14).

During the year ended December 31, 2022:

	●	On November 3, 2022, the Company issued 30 shares of Series B preferred shares to a consultant of the Company for services to be rendered. These preferred shares were value at $213,000 based on the fair value of the underlying common stock.

	●	On August 1, 2022, the Company issued an aggregate of 191 shares of Series B preferred shares to the CEO of the Company for past services. These preferred shares were value at $897,000 based on the fair value of the underlying common stock.

	●	On June 27, 2022, the Company issued an aggregate of 105 shares of Series B preferred shares to the Company’s board of directors for past services. These preferred shares were value at $777,000 based on the fair value of the underlying common stock.

Note 14 – COMMON STOCK

Authorized

On January 18, 2023, the Company received approval to increase the number of authorized common shares from 350,000,000 to 1,000,000,000.

1,000,000,000 common shares, authorized, each having a par value of $0.001 per share.

Common Stock Transactions

During the six months ended June 30, 2023:

	●	The Company issued 3,000,000 shares of common stock with a fair value of $213,000 for conversion of 30 Series B Preferred Shares.

	●	The Company issued 5,983,617 shares of common stock with a fair value of $89,790 for conversion of 184 Series F Preferred Shares.

During the year ended December 31, 2022:

	●	The Company issued an aggregate of 500,000 shares of common stock to satisfy shares to be issued for investor relations. The shares had a fair value of $46,000 of which $26,353 of expense was recognized during the year period ended December 31, 2022. $19,647 of expense was recorded during the year ended December 31, 2021 and $26,353 was recorded as prepaid.

	●	The Company issued 160,000 shares of common stock with a fair value of $13,760 for investor relations services.

	●	The Company issued 500,000 shares of common stock with a fair value of $47,000 for legal services.

	●	The Company issued 15,924,810 shares of common stock with a fair value of $302,557 for conversion of 470 Series F Preferred Shares.

Common Stock to be Issued

Common stock to be issued as at June 30, 2023 consists of:

None.

Common stock to be issued as at December 31, 2022 consists of:

None.

Warrants

During the six months ended June 30, 2023:

No warrant activity took place in the six months ended June 30, 2023.

During the year ended December 31, 2022:

●

On December 31, 2022, 6,813,371 warrants of the Company expired.

The fair values of the warrants were calculated using the following assumptions for the Black Sholes Option Pricing Model:

SCHEDULE OF WARRANTS ASSUMPTIONS

	December 31, 2022
Risk-free interest rate		0.18% - 0.82	%
Expected life		3.29 - 5.11 years
Expected dividend rate		0	%
Expected volatility		285.40 – 300.18	%

The continuity of the Company’s common stock purchase warrants issued and outstanding is as follows:

SCHEDULE OF WARRANTS OUTSTANDING

	Warrants		Weighted average exercise price
Outstanding as at December 31, 2020		12,939,813	$	0.60
Granted		3,500,000		0.41
Outstanding as at December 31, 2021		16,439,813	$	0.56
Expired		6,813,371		0.78
Outstanding as at June 30, 2023 and December 31, 2022		9,626,442	$	0.40

As of June 30, 2023, the weighted average remaining contractual life of warrants outstanding was 2.11 years (December 31, 2022 – 2.61 years) with an intrinsic value of $nil (December 31, 2022 - $nil).

Note 15 – RELATED PARTY TRANSACTIONS

During the six months ended June, 2023, the Company incurred $204,556 (2022 - $376,153) in salaries, bonuses of $60,000 (2022 - $60,000), and $284,102 (2022 - $47,990) in consulting fees to the President and CEO, and CFO of the Company, and the President, CEO’s, and CFO’s of the Company’s subsidiaries. As at June 30, 2023, the Company owed $97,000 (December 31, 2022 - $nil) to the President, CEO, and CFO of the Company and $200,367 (December 31, 2022 - $49,441) to the President, CEOs, and CFOs of the Company’s subsidiaries for management fees and salaries, which is recorded in trade and other payables. Amounts owed and owing are unsecured, non-interest bearing, and due on demand. Recorded in due to related party are $55,334 (2022 - $nil) owed to the President and CEO of the Company. These amounts are non-interest bearing and due on demand.

On March 15, 2023, the Company received a loan from a related party in the principal amount of $16,040 (CAD$22,000). The loan is non-interest bearing and due on demand. This amount was repaid during the period ended June 30, 2023.

On March 15, 2023, the Company received a loan from a related party in the principal amount of $10,000. The loan is non-interest bearing and due on demand.

On March 17, 2023, the Company received a loan from a related party in the principal amount of $20,000. The loan is non-interest bearing and due on demand.

On March 23, 2023, the Company received a loan from a related party in the principal amount of $3,000. The loan is non-interest bearing and due on demand.

On April 11, 2023, the Company received a loan from a related party in the principal amount of $2,000. The loan is non-interest bearing and due on demand.

On June 21, 2023, the Company received a loan from a related party in the principal amount of $10,000. The loan is non-interest bearing and due on demand.

On June 30, 2023, the Company received a loan from a related party in the principal amount of $10,530. The loan is non-interest bearing and due on demand.

Note 16 – SEGMENT INFORMATION

During the six months ended June 30, 2023 and June 30, 2022, the Company’s operations included revenue and costs from the sale and rental of GPS tracking devices and interfaces for golf vehicles and related support services, the sale of golf vehicles, and the sale of electric vehicles which includes e-bikes. The Company’s reporting segments are those associated with operating segments above, and the administration of the Company.

Six months ended June 30, 2023	Administration			Electric Vehicles			Golf Carts			GPS Units			Total
Revenue	$	-		$	-		$	822,444		$	493,041		$	1,315,485
Cost of revenue		-			-			350,001			195,376			545,377
Gross profit		-			-			472,443			297,665			770,108

Operating expenses
Compensation expense		138,499			(1,977	)		67,188			480,852			684,562
General and administration expense		758,373			345,065			336,429			225,984			1,665,851
Bad debt expense		-			37,433			49,112			17,579			104,124
Inventory write-down		-			-			64,680			-			64,680
Depreciation and amortization expense		5,770			-			-			-			5,770
Total operating expense		902,642			380,521			517,409			724,415			2,524,987
Loss from operations		(902,642	)		(380,521	)		(44,966	)		(426,750	)		(1,754,879	)

Other income (expense)
Foreign currency exchange		(6,225	)		-			-			-			(6,225	)
Gain on lease modification		6,932			-			-			-			6,932
Finance costs		(1,029,068	)		-			-			(64,405	)		(1,093,473	)
Total other income (expense)		(1,028,361	)		-			-			(64,405	)		(1,092,766	)
Net loss	$	(1,931,003	)	$	(380,521	)	$	(44,966	)	$	(491,155	)

DSG Global Inc. [DSGT] Filings
10-Q	[2023-08-29]
10-Q	[2023-07-13]
10-K	[2023-04-18]
10-Q	[2022-11-14]
10-Q	[2022-08-18]
10-Q	[2022-06-14]
10-K	[2022-04-01]
10-Q	[2021-11-15]
10-Q	[2021-08-16]
10-Q	[2021-05-17]
S-1	[2021-04-21]
10-K	[2021-03-05]
S-1	[2021-01-29]
10-Q	[2020-11-12]
10-Q	[2020-08-14]
10-Q	[2020-06-29]
10-K	[2020-05-15]
10-Q	[2019-11-14]
S-1	[2019-10-04]
S-1	[2019-09-09]
10-Q	[2019-08-16]
S-1	[2019-06-26]
10-Q	[2019-06-17]
10-K	[2019-05-28]
10-Q	[2018-12-18]
10-Q	[2018-08-15]
10-Q	[2018-05-22]
10-K	[2018-04-19]
10-Q	[2017-12-21]
S-1	[2017-10-06]
10-Q	[2017-08-21]
10-Q	[2017-05-22]
10-K	[2017-04-28]
10-Q	[2016-12-16]
10-Q	[2016-08-26]
10-Q	[2016-05-20]
10-K	[2016-05-02]
10-Q	[2015-11-16]
10-Q	[2015-08-14]
10-Q	[2015-05-20]
10-Q	[2015-03-12]
10-K	[2015-02-18]
10-Q	[2014-08-20]
10-Q	[2014-05-15]
10-Q	[2014-02-19]
10-K	[2014-01-15]
10-Q	[2013-08-14]
10-Q	[2013-05-15]
10-Q	[2013-02-19]
10-K	[2013-01-07]
10-Q	[2012-08-14]
10-Q	[2012-05-15]
10-Q	[2012-02-14]
10-K	[2012-01-17]