10-K 1 ttcm_10k.htm FORM 10-K ttcm_10k.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2022

 

Commission file number 000-55721

 

TAUTACHROME, INC.

(Name of Small Business Issuer in Its Charter)

  

Delaware

 

84-2340972

(State or other jurisdiction of incorporation or organization)

 

(Employer Identification No.)

  

1846 E. Innovation Park Drive,

Oro Valley, Arizona 85755

(Address of principal executive offices, including zip code.)

 

(520) 318-5578

(Registrant's telephone number, including area code)

 

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

 

 

Title of Each Class

 

Trading Symbol(s)

 

Name of Each Exchange on Which Registered

None

 

N/A

 

N/A

 

Title of Class

Common Stock, $0.00 par value

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

 

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

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

(Do not check if a 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 ☒

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 30, 2022, the last business day of the Registrant’s most recently completed second fiscal quarter, was approximately $3,002,442 (based on the closing price of $0.0007 on June 30, 2022 on the OTC Markets).

 

As of May 22, 2023, the registrant had 6,603,192,848 shares of its common stock outstanding.

 

Documents Incorporated by reference: None.

 

 

 

 

TAUTACHROME, INC.

FORM 10-K

For the Years Ended December 31, 2022 and 2021

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

3

Item 1.  Business Factors

 3

Item 1A.  Risk Factors

6

Item 1B.  Unresolved Staff Comments

 6

Item 2.  Properties

 6

Item 3.  Legal Proceedings

 6

Item 4.  Mine Safety Disclosures

 6

PART II - OTHER INFORMATION

 7

Item 5.  Market for Common Equity and Related Stockholder Matters

 7

Item 6.  Selected Financial Data

 8

Item 7.  Management’s Discussion and A,5nalysis or Plan of Operation

 8

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

 11

Item 8.  Financial Statements and Supplemental Data

 12

Item 9.  Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

 13

Item 9A.  Controls and Procedures

 13

Item 9B.  Other Information

 14

PART III

 15

Item 11.  Executive Compensation

18

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 

21

Item 13.  Certain Relationships and Related Transactions, and Director Independence

22

Item 14.  Principal Accountant Fees and Services

 22

PART IV

 23

Item 15.  Exhibits, Financial Statement Schedules, Signatures

 23

 

 
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PART 1 – FINANCIAL INFORMATION

 

Cautionary Note Regarding Forward-Looking Statements

 

This report contains forward-looking statements that involve risks and uncertainties. We generally use words such as "believe," "may," "could," "will," "intend," "expect," "anticipate," "plan," and similar expressions to identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described below and elsewhere in this report. Although the forward-looking statements herein reflect our focused actual intentions, and although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.

 

All references in this Annual Report to the "Company," "we," "us" or "our" are to Tautachrome, Inc. and our wholly owned subsidiary(ies). 

 

Since its public announcement on September 25, 2017 (via SEC form 8-K) that it would be using its Twitter site (@Tautachrome_Inc) (https://twitter.com/tautachrome_inc)  to post important Company information, and finding this method of publicizing important Company information both fast and effective, the Company has continued to use this means of public communication almost exclusively, supplemented occasionally with Current Reports via SEC Form 8-Ks. Shareholders are advised to follow us on Twitter to be current on the Company’s disclosures in conformity with Regulation FD.

 

Item 1.  Business Factors

 

History

 

The Company was formed in Delaware on June 5, 2006 as Caddystats, Inc.

 

On March 3, 2009, the Company acquired all of the voting shares of Roadships Holdings, Inc., a Florida Corporation, and Roadships America, Inc., also a Florida Corporation in exchange for an aggregate of 16,025,000 shares of the Company’s common stock.  On March 4, 2009, the Company changed its name to Roadships Holdings, Inc.

 

On May 26, 2015, the Company acquired all the voting shares of Click Evidence Inc., an Arizona corporation.  Effective November 2, 2015, the Company changed its name to Tautachrome Inc.

 

Our Business

 

Tautachrome operates in the internet applications space, uniquely exploiting the technologies of the Augmented Reality sector, the blockchain/cryptocurrency sector and the smartphone picture and video technology sector. We have high-speed blockchain concepts under development aiming to couple with the Company’s patents and licensing in augmented reality, smartphone-image authentication and imagery-based social networking.

 

Tautachrome is currently pursuing four main avenues of business activity based on our patented activated imaging technology, our blockchain cryptocurrency products, and our licensing of the patent pending ARk technology (together banded “KlickZie” technology):

 

 

1.

KlickZie ARk technology business: The Company has licensed and is developing a new KlickZie augmented reality (“AR”) platform branded ARknet. ARknet enables goods and services providers to establish geolocated augmented reality interfaces, called ARks, allowing consumers to purchase the provider’s products and take advantage of is specials and discounts, using the ARk. A provider’s ARk may be located anywhere in the world, from a store location to anyplace else the provider may desire. The ARknet is a fintech platform connecting consumers to providers in the global $50+ trillion household goods market, using augmented reality as the medium of interaction.

 

2.

KlickZie’s blockchain cryptocurrency-based ecosystem: The Company has developed its own digital currency (“XAR”), smart contracts using XARs, and high speed blockchain concepts aimed at supporting fast frictionless transactions within the ARknet as well as incentivizing user activity in the development of ARknet infrastructure and the use of ARknet services.

             

 
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3.

KlickZie Activated Digital Imagery business: The Company is developing downloadable apps based on our patented KlickZie trusted imaging and image-based social interactions using the pictures and videos that smartphone users create.

 

4.

New Platform Exploitation: The Company is looking to exploit its KlickZie technology to generate substantial revenues partnering with Fortune 50 corporations via novel platforms introduced to the Company by Mr. Timothy Holly (the “PXR Platforms”), our new director appointed to the Board on December 22, 2022.

 

In the long term, we envision a KlickZie ARknet with billions of users and ARks connecting humanity, commerce, information, crypto currency, and innovation in economically useful ways. In the mid-term, we aim to achieve significant cash flow by coupling the KlickZie and PXR Platforms together to develop unique partnerships with a number of Fortune 50 corporations.

 

Competition

 

With regard to the internet applications in general, competition is intense. According to Statista there are millions of smartphone applications available to users. In spaces that are this crowded the principal matter of competition is about capturing user mind space, which for a given product consists of elements such as degree of product exposure to users, degree of product apparent desirability, pleasure of product usage, and persisting necessity for the product in a user’s life. These elements of competition are well known to our competitors which include the internet giants Google, Apple, Facebook and Amazon, all of whom have financial resources and operating staffs substantially larger than those of the Company, and all of whom can focus on the optimization of their products towards the same consumer and business arenas upon which we intend to focus.

 

With regard to the ARknet augmented reality space, while there is no direct competition in the space at the moment, that could change in a heartbeat with an interest taken by any of the internet giants mentioned above.

 

With regard to KlickZie’s technology for marking, storing and tracking digital imagery, there are many firms who mark, store and track digital imagery. Among these have been Digimarc, BatchPhoto, and Thirdlight who have marketed such processes for purposes of protecting intellectual property. To our knowledge none of these has turned the smartphone into a generally trustable imager or an advanced image-based communicator as envisioned here. This requires substantially more talent and development activity than required for marking, storing and tracking digital imagery. However, there is nothing stopping any firm, particularly the internet giants, from entering into similar activity. Moreover Truepic, which entered the arena of smartphone trusted imagery, also has patents related to trusted imagery. We have reviewed Truepic’s patent claims and believe that our planned applications do not infringe their claims.

 

Intangible Properties: issued and pending patents

 

The proprietary nature of, and protection for, our technologies, processes, and know-how are important to our business. Our success could substantially depend upon our ability to protect the proprietary nature of our technologies and know-how, to protect our technology from infringement, misappropriation, discovery and duplication, and to operate without infringing the proprietary rights of others.

 

We seek patent protection for our technologies. Our policy is to patent the technology, inventions and improvements that we consider important to the development of our business. We cannot be sure that any of our pending patent applications will be granted, or that any patents or licenses which we own or obtain in the future will fully protect our position. Our patent rights and the patent rights of technology  companies in general, are highly uncertain and include complex legal and factual issues. We believe that our existing technology licensing, and the patents which we hold and for which we have applied, do not infringe anyone else's patent rights. We believe our technology and patent rights will provide meaningful protection against others duplicating our proprietary technologies. We cannot be sure of this, however, because of the complexity of the legal and scientific issues that could arise in litigation over these issues.

 

Despite these measures, any of our intellectual property and proprietary rights could be challenged, invalidated, circumvented, infringed or misappropriated, or such intellectual property and proprietary rights may not be sufficient to permit us to take advantage of current market trends or otherwise to provide competitive advantages.

 

 
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As of the date of this annual report, our patent portfolio includes the patents and applications issued by and filed with the USPTO and the purchase technology licensing as described in the following table:

 

Title

 

Status

 

Patent or Application Number

 

 

License date Patent Grant or Application Date

 

License to commercialize the patent: Exploitation Of Augmented Reality And Cryptotoken Economics In An Information-Centric Network Of Smartphone Users And Other Imaging Cyborgs

 

Patent pending owned by Arknet Inc & licensed to Tautachrome

 

62/755589

 

 

11/05/2018

 

Authentication And Validation Of Smartphone Imagery

 

Patent granted to & owned by Tautachrome

 

 

9582843

 

 

02/28/2017

 

Authentication And Validation Of Smartphone Imagery

 

Patent granted to & owned by Tautachrome

 

 

10019774

 

 

07/10/2018

 

Authentication And Validation Of Smartphone Imagery

 

Patent granted to & owned by Tautachrome

 

 

10019773

 

 

07/10/2018

 

System And Method For Creating, Processing, And Distributing Images That Serve As Portals Enabling Communication With Persons Who Have Interacted With The Images

 

Patent granted to & owned by Tautachrome

 

 

9928352

 

 

03/27/2018

 

System And Method For Creating, Processing, And Distributing Images That Serve As Portals Enabling Communication With Persons Who Have Interacted With The Images

 

Patent granted to & owned by Tautachrome

 

910,339,283 B2

 

 

07/02/2019

 

System And Method For Creating Geo-located Augmented Reality Communities

 

Patent granted and owned by Arknet Inc & licensed to Tautachrome

 

 

11,461,974

 

 

10/20/2022

 

Advanced Signal Processing and Fusion for AR, MR, and VR Applications with Attention Mechanisms, RNN Autoencoders, and Multi-Modal Integration.

 

Patent Pending Disclosure filed by Tautachrome

 

63/492,894

 

 

03/17/2023

 

Amenable Structures Approximate (ASA) Solution for Augmented Reality Object Placement. Invention enabling users to create AR objects permanently and correctly placed in any spot in the visible environment near shopping centers and housing complexes

 

Patent pending Disclosure filed by Tautachrome using . four advanced AI techniques

 

63/454,337

 

 

03/21/2023

 

Self-Destructing Digital Asset Protection System.

Invention provides a comprehensive licensing management and self-destructing digital asset protection system.

 

Patent Disclosure filed by Tautachrome using advanced security, monitoring, and protection

 

63/493,801

 

 

04/23/2023

 

Gramagery-Encoded Blockchain Improvement System with Gramage Stacks and Generational Tree Structures for Optimized Data Storage and Management

 

Patent Disclosure filed by Tautachrome using high peed block chain improvements

 

63/459/001

 

 

04/13/2023

 

 

We rely upon unpatented trade secrets, know-how, and continuing technological innovation to develop and maintain our competitive position. We seek to protect our ownership of know-how and trade secrets through an active program of legal mechanism including assignments, confidentiality agreements, material transfer agreements, research collaborations, and licenses.

 

 
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Employees

 

Tautachrome Inc. has no employees. Services are currently provided through independent contractors. For SOX compliance, in the SOX Certifications section of our SEC 10-K and 10-Q financial filings, where one of our directors administers both CEO and CFO offices and is signing for both offices, this fact is indicated on the signature block thereof.

 

Item 1A.  Risk Factors

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are not required to provide the information required under this item.

 

Item 1B.  Unresolved Staff Comments

 

Not applicable.

 

Item 2.  Properties

 

Our principal business and corporate address is 1846 E Innovation Park Drive, Oro Valley, Arizona 85755 (Telephone: 520 318 5578).

 

We do not currently have any investments or interests in real estate, nor do we have investments or any interest in real estate mortgages or securities of entities engaged in real estate activities.

 

Item 3.  Legal Proceedings

 

None

 

Item 4.  Mine Safety Disclosures

 

Not applicable.

 

 
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PART II - OTHER INFORMATION

 

Item 5.  Market for Common Equity and Related Stockholder Matters

 

Market Information

 

Our shares trade on the OTC PINK under the symbol “TTCM”.  The following table sets forth the high and low closing bid prices of our common stock for the last two calendar years, as reported by OTC Markets Group Inc. and represents inter dealer quotations, without retail mark-up, mark-down or commission and may not be reflective of actual transactions:

 

Quarter Ended

 

High

 

 

Low

 

December 31, 2022

 

$0.00080

 

 

$0.00050

 

September 30, 2022

 

 

0.00130

 

 

 

0.00065

 

June 30, 2022

 

 

0.00320

 

 

 

0.00070

 

March 31, 2022

 

 

0.00460

 

 

 

0.00175

 

December 31, 2021

 

$0.00700

 

 

$0.00300

 

September 30, 2021

 

 

0.00950

 

 

 

0.00570

 

June 30, 2021

 

 

0.01400

 

 

 

0.00820

 

March 31, 2021

 

 

0.01950

 

 

 

0.00550

 

 

 
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Holders

 

On December 31, 2022, the Company had approximately 590 stockholders of record, and approximately 6,956 beneficial owners of shares of common stock whose shares are held in the names of various security brokers, dealers, and registered clearing agencies, for a total of approximately 7,546 beneficial owners of shares of common stock.

 

Dividends

 

We have not declared or paid cash dividends on our common stock since inception and do not anticipate paying such dividends in the foreseeable future.  The payment of dividends may be made at the discretion of the Board of Directors and will depend upon, among other factors, our operations, capital requirements, and overall financial condition.

 

Recent Sales of Equity Securities

 

 

·

We issued 227,485,212 shares in conversion of outstanding convertible promissory notes.

 

 

 

 

·

We issued 33,236,858 shares for conversion of accounts payable balances.

 

 

 

 

·

We issued 98,896,076 shares to settle stock payable balances.

 

 

 

 

·

We issued 3,000,000 shares to a Director

 

 

 

 

·

We issued 7,850,000 shares to a creditor as an enticement for a loan.

 

Securities Authorized for Issuance under Equity Compensation Plans

 

None.

 

Item 6.  Selected Financial Data

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

 

Item 7.  Management’s Discussion and Analysis or Plan of Operation

 

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) provides information for the years ended December 31, 2022 and December 31, 2021. This MD&A should be read together with our audited consolidated financial statements and the accompanying notes for the fiscal years ended December 31, 2022 and December 31, 2021.

 

This discussion contains forward-looking statements that involve certain risks and uncertainties. See “Forward-Looking Statements” elsewhere in this report.

 

Overall Performance

 

We are an early stage internet applications company, engaged in advanced technology and business development in the internet applications space.  We have incurred general and administrative costs, marketing expenses and research and development costs since we commenced our current operations in May 2015, against very little revenue.

 

The Company’s audited consolidated financial statements and the accompanying notes for the years ended December 31, 2022 and December 31, 2021, have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. We had negative cash flows from operations of $613,787 and $1,249,760 for the years ended December 31, 2022 and 2021, respectively, with recurring losses and negative working capital of $5,404,277 and $4,644,642 as at December 31, 2022 and 2021, respectively. These conditions raise substantial doubt as to our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

 

The continuing operations of the Company are dependent upon our ability to raise adequate financing and to commence profitable operations in the future. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through loans from related parties. We believe that actions presently being taken to obtain additional funding may provide the opportunity for the Company to continue as a going concern. There is no guarantee, however, that the Company will be successful in achieving these objectives.

 

 
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Results of Operations for the Years ended December 31, 2022 and 2021

 

Net Comprehensive Loss

 

The Company realized a net comprehensive loss of 1,112,225 for the year ended December 31, 2022 compared to a net comprehensive loss of $5,026,747 for the year ended December 31, 2021.

 

Revenue and Cost of Sales

 

The Company recognized minimal revenues and cost of sales for both years as the company’s product has not been fully taken to market.

 

Operating Expenses

 

The Company’s total operating expenses for the year ended December 31, 2022 were $1,072,022 compared to $4,267,148 for the year ended December 31, 2021, a decrease of $3,195,126.

 

For the year ended December 31, 2022, the Company incurred general and administrative expenses of $591,907 compared to $2,862,773 for the year ended December 31, 2021, a decrease of $2,270,866.

 

The following table sets out the material components of the Company’s general and administrative for the years ended December 31, 2022 and 2021.

 

 

 

Year Ended December 31,

 

General and Administrative Expenses

 

2022

 

 

2021

 

Legal and accounting fees

 

$101,733

 

 

$132,486

 

Consulting

 

 

76,700

 

 

 

138,385

 

Other professional services

 

 

97,787

 

 

 

97,847

 

Office and occupancy costs

 

 

15,077

 

 

 

9,897

 

Arknet license fees

 

 

200,000

 

 

 

200,000

 

Advertising and promotion

 

 

100,315

 

 

 

2,276,445

 

Other

 

 

295

 

 

 

7,713

 

 

 

$591,907

 

 

$2,862,773

 

 

The vast majority of change from 2021 to 2022 was in advertising and promotion (a decrease of 2,161,648, or a 96% decrease).  Most of this decrease resulted from our issuance of 198,000,000 shares in 2021 issued to a supplier to pay for media buys which resulted in a charge to Advertising and Promotion of $1,980,000.  No such issuance occurred in 2022.

 

Research and development

 

Research and development costs were $1,239,133 in 2021 versus $465,633 in 2022 owing to decreased development activity.

 

Bad Debt Expense

 

On June 8, 2021, we loaned a board member $150,000 on a promissory note which was due upon demand. The company made demand for re-payment and the board member defaulted on the note.  At the time of default, $760, in interest had accrued.  We charged the entirety of principal and interest to Bad Debt Expense. We had no such item in 2022.

 

 
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Depreciation Expense

 

We had depreciation expense of $14,482 for the year ended December 31, 2022 and 2021 as our assets are depreciated using the straight-line method and the asset base has not been changed.

 

Other Expenses

 

Other Expenses dropped significantly from the previous year due to decreased activities.  2021 saw a significant amount of discount amortization $1,092,397 versus only $593,261 in 2022.

 

Other Comprehensive Loss

 

At each balance sheet date, transactions and balances that are denominated in a currency other than U.S. dollars are adjusted to reflect the current exchange rate which may give rise to a foreign currency translation adjustment accounted for as a separate component of stockholders’ equity and included in other comprehensive income. The Company recorded a translation gain of $56,667 for the year ended December 31, 2022, compared to a gain of $53,444 for the year ended December 31, 2021. These amounts are included in the Company’s statement of operations as foreign currency gain (loss) for the respective years.

 

Liquidity and Capital Resources

 

As of the date of this report, the Company has generated only minimal revenues and is not profitable. The Company’s operations to date have been funded primarily by private placements of common stock and convertible notes, as well as by loans from its management and controlling stockholders.

 

As at December 31, 2022, the Company had $10,361 in cash and $5,414,638 in current liabilities resulting in a working capital deficit of $5,404,277. The Company is not currently able to maintain its operations through its existing cash balances and internally generated cash flows. Moreover, we have determined that the current capital structure of the Company is not adequate to fund its planned growth.

 

We intend to secure additional capital to fund the Company’s operations through the issuance of common stock, convertible debt instruments and loans from our management. There can be no assurance that we will be successful in obtaining the capital the Company requires to achieve its business objectives, or that such capital will be available on acceptable terms. Future cash flows are subject to a number of variables, including technology development costs, technology product rollout and support expense and the demand for the Company’s products and services.

 

Operating Activities

 

During the year ended December 31, 2022, the Company used net cash of $613,787 in operating activities compared to $1,249,760 for the year ended December 31, 2021.

 

The Company’s average monthly cash burn rate was $51,150 during the year ended December 31, 2022, compared to $104,000 for the year ended December 31, 2021. Subject to the success of the Company’s financing activities, we expect to increase operating activities in the coming year with a concomitant increase in the Company’s monthly burn rate. We will not be able to predict the increase to our burn rate until we have determined the outcomes of our financing activities.

 

Financing Activities

 

The Company received net cash of $323,400 from financing activities during the year ended December 31, 2022, consisting primarily from the issuance of convertible notes. During the year ended December 31, 2021, we received a net of $1,439,902 from financing activities which, again, we primarily from the issue of convertible notes.  We expect to continue our financing activities to fund our operations until such time as the Company’s technologies are commercialized and we generate revenue on a profitable basis.

 

Investing Activities

 

In 2021, we loaned a board member $150,000 on a promissory note which was due upon demand.  The company made demand for re-payment and the board member defaulted on the note.  We had no such item in 2022.

 

 
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Off Balance Sheet Arrangements

 

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

 

Critical Accounting Policies

 

The discussion and analysis of the Company’s financial condition and results of operations is based upon its financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of the Company’s financial statements is critical to an understanding of its financial statements.

 

Use of Estimates

 

The preparation of these financial statements in conformity with generally accepted accounting principles in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We regularly evaluate estimates and assumptions related to the recoverability of long-lived assets, valuation of convertible debentures, assumptions used to determine the fair value of stock-based compensation and derivative liabilities, and deferred income tax asset valuation allowances. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

Fair Value of Financial Instruments

 

We adopted the Financial Accounting Standards Board’s (FASB) Accounting Codification Standard No. 820 (“ASC 820), Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. ASC  820 applies under other accounting pronouncements that require or permit fair value measurements and accordingly, does not require any new fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1 - Observable inputs such as quoted prices in active markets;

 

Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The Company’s financial instruments consist principally of cash, amounts receivable, accounts payable, and accrued liabilities, due to related parties and convertible notes. Pursuant to ASC 820, the fair value of the Company’s cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of the Company’s other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.

 

Recent Accounting Pronouncements

 

We have reviewed the FASB issue Accounting Standards Update, (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the period reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.

 

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk.

 

A smaller reporting company is not required to provide the information required by this item.

 

 
11

Table of Contents

 

Item 8.  Financial Statements and Supplemental Data

 

Reference is made to the following in the Financial Section of this report:

 

 

·

Consolidated financial statements, together with the report thereon of M&K CPAS, PLLC dated March 24, 2022 (PCAOB ID 2738), beginning with the section entitled “Report of Independent Registered Public Accounting Firm” and continuing through “Note 7 – Subsequent Events”;

 

 

 

 

·

Financial Statement Schedules have been omitted because they are not applicable or the required information is shown in the consolidation financial statements or notes thereto.

 

INDEX TO FINANCIAL STATEMENTS

 

 

PAGE

Report of Independent Registered Public Accounting Firm

F-1

Consolidated Balance Sheets – December 31, 2022 and 2021

F-3

Consolidated Statements of Operations for the years Ended December 31, 2022 and 2021

F-4

Consolidated Statement of Changes in Stockholders’ Deficit from December 31, 2020 to December 31, 2022

F-5

Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021

F-6

Notes to Consolidated Financial Statements

F-7

 

 
12

Table of Contents

      

ttcm_10kimg1.jpg

 

To the Board of Directors and Stockholders of Tautachrome, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of Tautachrome, Inc. (the Company) as of December 31, 2022 and 2021, and the related consolidated statements of operations, changes in stockholders’ deficit, and cash flows for the two-year period then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its consolidated operations and its cash flows for each of the years in the two-year period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered net losses from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters are discussed in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB .

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and the significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe our audits provide a reasonable basis for our opinion.

 

 
F-1

Table of Contents

 

Critical Audit Matters

 

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

 

Convertible Notes Payable and Derivative Liabilities

 

As discussed in Note 5, the Company borrows funds through the use of convertible notes payable that contain a conversion price that may be fixed or fluctuates with the stock price. Due to the fluctuation of the conversion price, the embedded conversion feature requires bifurcation from the host contract and is recorded as a liability subject to market adjustments as of each reporting period. Significant judgment is exercised by the Company in determining derivative liability values for these convertible note agreements, including the use of a specialist engaged by management.

 

We evaluated management’s conclusions regarding their derivative liability and reviewed support for the significant inputs used in the valuation model, as well as assessing the model and disclosures for reasonableness.

 

/s/ M&K CPAS, PLLC

 

M&K CPAS, PLLC 

We have served as the Company’s auditor since 2008

 

Houston, TX

 

May 20, 2023

 

 
F-2

Table of Contents

 

TAUTACHROME, INC. AND CONSOLIDATED SUBSIDIARIES

Consolidated Balance Sheets

 

 

 

12/31/2022

 

 

12/31/2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$10,361

 

 

$119,466

 

Total current assets

 

 

10,361

 

 

 

119,466

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

10,862

 

 

 

25,344

 

TOTAL ASSETS

 

$21,223

 

 

$144,810

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$1,143,766

 

 

$813,024

 

Accounts payable - related party

 

 

930,000

 

 

 

706,476

 

Loans from related parties

 

 

116,088

 

 

 

103,640

 

Convertible notes payable - related party, net

 

 

108,792

 

 

 

70,392

 

Short-term convertible notes payable, net

 

 

1,671,805

 

 

 

1,637,812

 

Convertible notes payable in default

 

 

499,426

 

 

 

32,000

 

Short-term notes payable, net

 

 

67,227

 

 

 

15,989

 

Derivative liability

 

 

877,534

 

 

 

1,384,775

 

Total current liabilities

 

 

5,414,638

 

 

 

4,764,108

 

 

 

 

 

 

 

 

 

 

Long-term convertible notes payable, related party, net

 

 

-

 

 

 

14,996

 

Total non-current liabilities

 

 

-

 

 

 

14,996

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

5,414,638

 

 

 

4,779,104

 

STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Series E Convertible Preferred Stock, par value $0.000140,000 shares authorized, 40,000 shares outstanding at December 31, 2022 and December 31, 2021, respectively

 

 

4

 

 

 

4

 

Series F Convertible Preferred Stock, par value $0.00001290,397 shares authorized, 290,397 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively

 

 

30

 

 

 

30

 

Common stock, $0.00001 par value.  6.5 billion shares authorized. 6,237,077,061 and 5,866,608,915 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively

 

 

62,371

 

 

 

58,666

 

Additional paid in capital

 

 

16,162,774

 

 

 

15,337,300

 

Common stock payable

 

 

164,509

 

 

 

640,584

 

Accumulated deficit

 

 

(21,911,052)

 

 

(20,742,160)

Effect of foreign currency exchange

 

 

127,949

 

 

 

71,282

 

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' DEFICIT

 

 

(5,393,415)

 

 

(4,634,294)

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$21,223

 

 

$144,810

 

 

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

 

 
F-3

Table of Contents

 

TAUTACHROME, INC. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Operations

 

 

 

 Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

Online sales platform

 

$3

 

 

$22

 

Products

 

 

30

 

 

 

240

 

Total revenues

 

 

33

 

 

 

262

 

Cost of sales

 

 

2

 

 

 

79

 

Gross profit

 

 

31

 

 

 

183

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

General and administrative

 

$591,907

 

 

$2,862,773

 

Bad debt expense

 

 

-

 

 

 

150,760

 

Depreciation expense

 

 

14,482

 

 

 

14,482

 

Research and development

 

 

465,633

 

 

 

1,239,133

 

Total operating expenses

 

 

1,072,022

 

 

 

4,267,148

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(1,071,991)

 

 

(4,266,965)

 

 

 

 

 

 

 

 

 

OTHER INCOME / (EXPENSE)

 

 

 

 

 

 

 

 

Gain (loss) on settlement of debt

 

 

108,087

 

 

 

(225)

Interest expense

 

 

(806,482)

 

 

(1,238,843)

Change in value of derivatives

 

 

601,494

 

 

 

425,842

 

Total other

 

 

(96,901)

 

 

(813,226)

Net loss

 

$(1,168,892)

 

$(5,080,191)

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME (LOSS)

 

 

 

 

 

 

 

 

Effect of foreign currency exchange

 

 

56,667

 

 

 

53,444

 

Net comprehensive income or (loss)

 

$(1,112,225)

 

$(5,026,747)

 

 

 

 

 

 

 

 

 

Net (loss) or income per common share

 

 

 

 

 

 

 

 

Basic and fully diluted

 

$(0.00)

 

$(0.00)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic and fully diluted

 

 

6,007,163,665

 

 

 

4,721,741,017

 

 

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

 

 
F-4

Table of Contents

 

TAUTACHROME, INC.  AND CONSOLIDATED SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Deficit

From December 31, 2020 to December 31, 2022

 

 

 

 Common Stock

 

 

 Preferred Stock Series D

 

 

 Preferred Stock Series E

 

 

 Preferred Stock Series F

 

 

 Additional Paid in

 

 

 Stock

 

 

 Other Comprehensive Income

 

 

 Accumulated

 

 

 Total Stockholders' Equity / 

 

 

 

 Shares

 

 

 Amount

 

 

 Shares

 

 

 Amount

 

 

 Shares

 

 

 Amount

 

 

 Shares

 

 

 Amount

 

 

 Capital

 

 

  Payable

 

 

 (Loss)

 

 

Deficit

 

 

(Deficit)

 

Balance, December 31, 2020

 

 

4,120,475,247

 

 

$41,205

 

 

 

13,795,104

 

 

$1,380

 

 

 

40,000

 

 

$4

 

 

 

290,397

 

 

$30

 

 

$11,427,087

 

 

$336,584

 

 

$17,838

 

 

$(15,661,969)

 

$(3,837,841)

Shares issued for conversion of debt

 

 

295,898,288

 

 

 

2,959

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,087,086

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,090,045

 

Derivative associated with early debt retirement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

650,208

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

650,208

 

Shares issued for services

 

 

214,125,000

 

 

 

2,141

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,116,384

 

 

 

(2,111,400)

 

 

-

 

 

 

-

 

 

 

7,125

 

Shares issued as enticement for loan

 

 

6,600,000

 

 

 

66

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

56,749

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

56,815

 

Shares issued to convert Series D preferred to common

 

 

1,379,510,380

 

 

 

13,795

 

 

 

(13,795,104)

 

 

(1,380)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,415)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Shares retired by Chief Executive Officer

 

 

(150,000,000)

 

 

(1,500)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,500

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Stock payable for services

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,415,400

 

 

 

-

 

 

 

-

 

 

 

2,415,400

 

Imputed interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,701

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,701

 

Effect of foreign currency exchange

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

53,444

 

 

 

-

 

 

 

53,444

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,080,191)

 

 

(5,080,191)

Balance, December 31, 2021

 

 

5,866,608,915

 

 

$58,666

 

 

 

-

 

 

$-

 

 

 

40,000

 

 

 

4

 

 

 

290,397

 

 

 

30

 

 

$15,337,300

 

 

$640,584

 

 

$71,282

 

 

$(20,742,160)

 

$(4,634,294)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for conversion of debt

 

 

227,485,212

 

 

 

2,275

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

140,420

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

142,695

 

Shares issued for conversion of accounts payable

 

 

33,236,858

 

 

 

332

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

28,581

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

28,913

 

Shares issued for stock payable

 

 

98,896,076

 

 

 

989

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

562,261

 

 

 

(563,250)

 

 

-

 

 

 

-

 

 

 

-

 

Derivative associated with early debt retirement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

74,042

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

74,042

 

Shares issued to Director

 

 

3,000,000

 

 

 

30

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,670

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,700

 

Shares issued as enticement for loan

 

 

7,850,000

 

 

 

79

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8,121

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8,200

 

Stock payable for services

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

87,175

 

 

 

-

 

 

 

-

 

 

 

87,175

 

Imputed interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,379

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,379

 

Effect of foreign currency exchange

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

56,667

 

 

 

-

 

 

 

56,667

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,168,892)

 

 

(1,168,892)

Balance, December 31, 2022

 

 

6,237,077,061

 

 

$62,371

 

 

 

-

 

 

$-

 

 

 

40,000

 

 

$4

 

 

 

290,397

 

 

$30

 

 

$16,162,774

 

 

$164,509

 

 

$127,949

 

 

$(21,911,052)

 

$(5,393,415)

 

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

 

 
F-5

Table of Contents

 

TAUTACHROME, INC. AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Cash Flows

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net Loss

 

$(1,168,892)

 

$(5,080,191)

Stock-based compensation

 

 

89,875

 

 

 

2,422,525

 

Depreciation, depletion and amortization

 

 

14,482

 

 

 

14,482

 

Change in fair value of derivative

 

 

(601,494)

 

 

(425,842)

Gain/(loss) on debt settlements

 

 

(108,087)

 

 

225

 

Amortization of discounts on notes payable

 

 

593,261

 

 

 

1,092,397

 

Imputed interest

 

 

9,379

 

 

 

10,701

 

Bad debt expense

 

 

-

 

 

 

150,760

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

-

 

 

 

(760)

Accounts payable and accrued expenses

 

 

319,689

 

 

 

368,943

 

Accounts payable - related party

 

 

238,000

 

 

 

197,000

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

 

(613,787)

 

 

(1,249,760)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Investment in Accumen

 

 

-

 

 

 

(150,000)

Net cash used in investing activities

 

 

-

 

 

 

(150,000)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from convertible notes payable

 

 

275,000

 

 

 

1,416,000

 

Proceeds from convertible notes payable, related party

 

 

-

 

 

 

40,000

 

Principal payments on convertible notes payable

 

 

(1,600)

 

 

-

 

Payment of expenses by related parties

 

 

-

 

 

 

6,000

 

Proceeds from notes payable

 

 

50,000

 

 

 

-

 

Principal payments on related-party loans

 

 

-

 

 

 

(22,098)

Net cash provided by financing activities

 

 

323,400

 

 

 

1,439,902

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

181,282

 

 

 

(35,203)

 

 

 

 

 

 

 

 

 

Net increase/(decrease) in cash

 

 

(109,105)

 

 

4,939

 

Cash and equivalents - beginning of period

 

 

119,466

 

 

 

114,527

 

Cash and equivalents - end of period

 

$10,361

 

 

$119,466

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY INFORMATION

 

 

 

 

 

 

 

 

Cash paid for interest

 

$-

 

 

$-

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF NON-CASH FINANCING TRANSACTIONS

Discounts on convertible notes

 

$202,495

 

 

$1,102,110

 

Conversion of debt and interest to common stock

 

$142,695

 

 

$1,090,045

 

Settlement of derivative liability

 

$74,042

 

 

$650,208

 

Shares issued for trade debts

 

$28,913

 

 

 

 -

 

Shares issued for stock payable

 

$563,250

 

 

$2,111,400

 

Shares for debt enticement

 

$-

 

 

$56,815

 

Preferred for common shares

 

$-

 

 

$13,795

 

Shares retired

 

$-

 

 

$1,500

 

Accounts payable settled with convertible note

 

$-

 

 

$247,426

 

Initial derivative

 

$168,295

 

 

$981,295

 

 

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

 

 
F-6

Table of Contents

 

TAUTACHROME, INC. AND CONSOLIDATED SUBSIDIARIES

Notes to Consolidated Financial Statements

 

Note 1 - Basis of Presentation and Summary of Significant Accounting Policies

 

Organization and Nature of Business

 

History

 

Tautachrome, Inc. was formed in Delaware on June 5, 2006 as Caddystats, Inc. and hereinafter collectively referred to as  “Tautachrome”, the “Company”, “we’ or “us”).

 

The Company adopted the accounting acquirer’s year end, December 31.

 

Our Business

 

Tautachrome operates in the internet applications space, uniquely exploiting the technologies of the Augmented Reality sector, the blockchain/cryptocurrency sector and the smartphone picture and video technology sector. We have high-speed blockchain concepts under development aiming to couple with the Company’s patents and licensing in augmented reality, smartphone-image authentication and imagery-based social networking.

 

Tautachrome is currently pursuing four main avenues of business activity based on our patented activated imaging technology, our blockchain cryptocurrency products, and our licensing of the patent pending ARk technology (together banded “KlickZie” technology):

 

 

1.

KlickZie ARk technology business: The Company has licensed and is developing a new KlickZie augmented reality (“AR”) platform branded ARknet. ARknet enables goods and services providers to establish geolocated augmented reality interfaces, called ARks, allowing consumers to purchase the provider’s products and take advantage of is specials and discounts, using the ARk. A provider’s ARk may be located anywhere in the world, from a store location to anyplace else the provider may desire. The ARknet is a fintech platform connecting consumers to providers in the global $50+ trillion household goods market, using augmented reality as the medium of interaction.

 

2.

KlickZie’s blockchain cryptocurrency-based ecosystem: The Company has developed its own digital currency (“XAR”), smart contracts using XARs, and high speed blockchain concepts aimed at supporting fast frictionless transactions within the ARknet as well as incentivizing user activity in the development of ARknet infrastructure and the use of ARknet services.

 

3.

KlickZie Activated Digital Imagery business: The Company is developing downloadable apps based on our patented KlickZie trusted imaging and image-based social interactions using the pictures and videos that smartphone users create.

 

4.

New Platform Exploitation: The Company is looking to exploit its KlickZie technology to generate substantial revenues partnering with Fortune 50 corporations via novel platforms introduced to the Company by Mr. Timothy Holly (the “PXR Platforms”), our new director appointed to the Board on December 22, 2022.

      

In the long term, we envision a KlickZie ARknet with billions of users and ARks connecting humanity, commerce, information, crypto currency, and innovation in economically useful ways. In the mid-term, we aim to achieve significant cash flow by coupling the KlickZie and PXR Platforms together to develop unique partnerships with a number of Fortune 50 corporations.

 

 
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Table of Contents

 

Basis of Presentation

 

The Company’s financial statements are presented in accordance with accounting principles generally accepted (GAAP) in the United States.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein.

 

Principles of Consolidation

 

Our consolidated financial statements include Tautachrome, Inc. and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of these financial statements in conformity with generally accepted accounting principles in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We regularly evaluate estimates and assumptions related to the recoverability of long-lived assets, valuation of convertible debentures, assumptions used to determine the fair value of stock-based compensation and derivative liabilities, and deferred income tax asset valuation allowances. We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with an initial maturity of 3 months or less to be cash equivalents.  The Company maintains its deposits with high quality financial institutions and, accordingly, believes its credit risk exposure associated with cash is remote.  

 

Earnings Per Share

 

Basic earnings per common share is computed by dividing net earnings or loss (the numerator) by the weighted average number of common shares outstanding during each period (the denominator). Diluted earnings per common share is similar to the computation for basic earnings per share, except that the denominator is increased by the dilutive effect of stock options outstanding and unvested restricted shares and share units, computed using the treasury stock method.  There are currently no common stock equivalents.

 

Fair Value of Financial Instruments

 

We adopted the Financial Accounting Standards Board’s (FASB) Accounting Codification Standard No. 820 (“ASC 820), Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. ASC  820 applies under other accounting pronouncements that require or permit fair value measurements and accordingly, does not require any new fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

 
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Table of Contents

 

Level 1 - Observable inputs such as quoted prices in active markets;

 

Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

At December 31, 2022 and 2021, we had total liabilities of $5,414,638 and $4,779,104, respectively.  Of this amount, only the derivative liabilities of $877,534 and 1,384,775, respectively ,were calculated using level 3 inputs.  All other liabilities were calculated using level 1 inputs.

 

Income Taxes

 

We recognize deferred tax assets and liabilities based on differences between the financial reporting and tax bases of assets and liabilities using the enacted tax rates that are expected to be in effect when the differences are expected to be recovered.  We provide a valuation allowance for deferred tax assets for which we do not consider realization of such assets to be more likely than not.  

 

See Note 6 for our reconciliation of income tax expense and deferred income taxes as of and for the years ended December 31, 2022 and 2021.

 

Note 2 – Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, we had negative cash flows from operations of $613,787 and $1,249,760 for the years ended December 31, 2022 and 2021, respectively, and have experienced recurring losses, and negative working capital at December 31, 2022 and 2021.  These conditions raise substantial doubt as to our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

 

The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. Management believes that actions presently being taken to obtain additional funding may provide the opportunity for the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving these objectives.

 

Note 3 – Related Party Transactions

 

Accounts payable – related party consists of $130,000 accrued to our former CEO and Director, Dr. Jon Leonard for unpaid salary and $800,000 owed in accrued license fees to Arknet.

 

Loans from Related Parties consists of $97,480 owed to Michael Nugent, $5,000 owed to David LaMountain, our CEO, and $13,608 owed to various members of the Nugent family.  At December 31, 2021, we owed $103,640 to Michael Nugent and members of the Nugent family.

 

Convertible Notes Payable, Related Party, Net consists of $70,392 that are owed to officers and directors of the company and $38,400 due to Arknet.  The discount on this note has been fully amortized to interest expense.  At December 31, 2021, we owed $70,392 to officers and directors of the Company.

 

 
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Table of Contents

 

According to our agreement with Mr. Nugent, we accrue interest on all unpaid amounts at 5%. Principal and interest are callable at any time. If principal and interest are called and not repaid, the loan is considered in default after which interest is accrued at 10%.

 

Certain of our promissory notes bear no nominal interest.  We therefore imputed interest expense and increased Additional Paid in Capital.  For the year ended December 31, 2022, we imputed $9,379 of such interest.  

 

We issued 3,000,000 shares to a Director pursuant to our agreement with him.  We valued the shares at the grant date fair value and charged general and administrative expenses with $2,700.

 

Convertible note payable, related party

 

On May 5, 2013 (and on August 8, 2013 with an enlargement amendment) the Company entered into a no interest demand-loan agreement with our current Chairman, Jon N. Leonard under which the Company may borrow such money from Dr. Leonard as Dr. Leonard in his sole discretion is willing to loan. 

 

The terms of the note provide that at the Company’s option, the Company may make repayments in stock, at a fixed share price of $1.00 per share.  Also, because this loan is a no-interest loan, an imputed interest expense of $17 was recorded as additional paid-in capital for the year ended December 31, 2022.  The Company evaluated Dr. Leonard’s note for the existence of a beneficial conversion feature and determined that none existed.

 

At December 31, 2022, the balanced owed Dr. Leonard is $419.

 

Common Stock

 

On December 29, 2021, Dr. Jon Leonard, our Chief Executive Officer, retired 150,000,000 shares of common stock.

 

Note 4 – Capital

 

Common Stock

 

During the year ended December 31, 2021, we issued

 

 

·

295,898,288 shares in conversion of $1,045,000 of principal and $45,045 of interest. We realized no gain or loss on the conversions.

 

 

 

 

·

214,125,000 shares to pay contractors for marketing campaigns. As a result, we charged general and administrative expenses with $2,118,525. We valued the issuances at the fair-value grant date. Of the $2,118,525 charged to general and administrative expenses, $2,111,400 we charged to expense in previous periods.

 

 

 

 

·

6,600,000 to a creditor as an enticement to enter into three convertible promissory notes whose principal amounts were $1,125,000 in the aggregate. The grant-date fair value of these enticements were $56,815 and are accounted for as debt discounts.

 

 

 

 

·

1,379,510,380 shares to convert all of the issued and outstanding Preferred D series shares into common stock according to the terms of the agreement. We recognized no gain or loss on the conversion.

 

 

 

 

·

A negative 150,000,000 shares which were retired from our Chief Executive Officer, Jon Leonard.

 

 
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Table of Contents

 

During the year ended December 31, 2022, we issued the following common shares:

 

 

·

227,485,212 shares converting $129,371 of principal and $13,324 in interest for convertible debt into equity. We recognized no gain or loss on the transactions.

 

 

 

 

·

7,850,000 shares an enticement for a convertible promissory note. We valued the shares at the grant date fair value and included $8,200 into equity. We accounted for the cost of these shares as a debt discount to be amortized over the life of the loan.

 

 

 

 

·

3,000,000 shares to a Director pursuant to our agreement with him. We valued the shares at the grant date fair value and charged general and administrative expenses with $2,700.

 

 

 

 

·

33,236,858 shares to our software development company to extinguish $137,000 of invoices due to them. We valued the shares at the grant data fair value and recorded a gain in the amount of $108,087.

 

Stock Payable

 

For the year ended December 31, 2022 we recorded stock payable to consultants of $87,175 pursuant to our contracts with them.

 

 

·

One consultant’s stock payable was valued per contract at $25,000 per quarter for a total of $50,000 for the year ended December 31, 2022. The actual number of shares to be issued will be calculated upon issuance.

 

 

 

 

·

Another consultant’s stock payable was valued at the total amount of work performed less $10,000 per month payable in cash. This consultant’s stock payable was therefore valued at $37,175 for work performed during the year ended December 31, 2022. The actual number of shares to be issued will be calculated upon issuance.

 

During the year ended December 31, 2022, we issued 98,896,076 shares to a consultant to extinguish a stock payable in the amount of $563,250.

 

Imputed Interest

 

Several of our loans were made without any nominal interest.  As such, we imputed interest at 8% to these loans, crediting Additional Paid in Capital and charging Interest Expense.  For the year ended December 31, 2022 and 2021, these amounted to  $9,379 and $10,701, respectively.

 

Preferred Stock

 

In October, 2016 we issued 13,795,104 shares of Series D preferred stock to our (then) directors in exchange for 1,379,510,380 shares of common stock.  This series of preferred stock was subject to two separate rights to convert to common stock.  The first could be elected by the shareholder  if the stock sold for greater than $3 per share.  The second was automatic and would not be trigger until October 5, 2021.  On that date, the original 1,379,510,380 common shares were issued retiring the Series D preferred stock.  There was no gain or loss on the conversion because the value of the common shares issued equaled the value of the Series D Preferred shares.

 

 
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Table of Contents

 

During the year ended December 31, 2018, we accrued $1,837,000 in costs related to the 40,000 Series E Preferred shares issued in accordance with our ARknet contract containing a par value of $0.0001.  This series of preferred shares have the following rights, limitations, restrictions and privileges:

 

 

·

They are not entitled to dividends,

 

 

 

 

·

They are entitled to no liquidation rights,

 

 

 

 

·

Each share has the voting rights of all other voting shares combined, multiplied by 0.00001, and

 

 

 

 

·

They have no conversion or redemption rights.

 

In September, 2020 we issued 290,397 Series F Preferred shares in retirement of twelve convertible promissory notes to Arknet.  In so doing, we reduced our liability to them in the amount of $610,500 of principal and $14,735 in interest.  Each share of Series F preferred is convertible into 1,000 shares of common stock.  This series of preferred shares have the following rights, limitations, restrictions and privileges:

 

 

·

They are not entitled to dividends unless all other classes of dividends have been paid,

 

 

 

 

·

They are entitled to no liquidation rights.

 

In October, 2016 we issued 13,795,104 shares of Series D preferred stock to our (then) directors in exchange for 1,379,510,380 shares of common stock.  This series of preferred stock was subject to two separate rights to convert to common stock.  The first could be elected by the shareholder  if the stock sold for greater than $3 per share.  The second was automatic and would not be trigger until October 5, 2021.  On that date, the original 1,379,510,380 common shares were issued retiring the Series D preferred stock.  There was no gain or loss on the conversion because the value of the common shares issued equaled the value of the Series D Preferred shares.

 

 
F-12

Table of Contents

 

Note 5 - Debt

 

Our debt in certain categories went from $3,259,604 at December 31, 2021 to $3,340,872 at December 31, 2022 as follows:

 

 

 

12/31/22

 

 

12/31/21

 

Loans from related parties

 

$116,088

 

 

$103,640

 

Convertible notes payable, related party

 

 

108,792

 

 

 

70,392

 

Short-term convertible notes payable, net

 

 

1,671,805

 

 

 

1,637,812

 

Convertible notes payable in default

 

 

499,426

 

 

 

32,000

 

Short-term notes payable

 

 

67,227

 

 

 

15,989

 

Derivative liability

 

 

877,534

 

 

 

1,384,775

 

Long-term convertible notes payable, related party

 

 

-

 

 

 

14,996

 

Totals

 

$3,340,872

 

 

$3,259,604

 

 

Loans from related parties

 

Loans from Related Parties consists of $97,480 owed to Michael Nugent, $5,000 owed to David LaMountain, our CEO, and $13,608 owed to various members of the Nugent family.  At December 31, 2021, we owed $103,640 to Michael Nugent and various members of the Nugent family.

 

Convertible notes payable – related party, net

 

At December 31, 2022, we owed $108,792 of related-party notes which are convertible into common stock, of which $69,973 is owed to David LaMountain, Our Chief Operating Officer and $419 to Dr. Jon Leonard, our former Chief Executive Officer.  

 

At December 31, 2021, we owed $70,392 of related-party notes which are convertible into common stock, of which $69,973 is owed to David LaMountain, Our Chief Operating Officer and $419 to Dr. Jon Leonard, our Chief Executive Officer.  As of December 31, 2021, all discounts on this items had been fully amortized.  During the year ended December 31, 2021, we amortized $26,316 of discounts to interest expense from this category.

 

As of December 31, 2022, all discounts on these items had been fully amortized.  

 

Additionally at December 31, 2022, we owed $38,400 to ArKnet.

 

Short-term convertible notes payable –  third-party, net

 

2021

Unpaid principal on short-term convertible notes payable at December 31, 2021 was $2,137,349, net of discounts of $499,537 (or $1,637,812).   

 

We have three convertible promissory notes which are in default at December 31, 2021 totaling $32,000.  There are no discount balances on these notes.

 

During the year ended December 31, 2021 we issued 220,978,521 shares to convert five outstanding convertible notes in their entirety and 220,978,521 shares to convert a portion of another.  We reduced unpaid principal by $1,045,000 and unpaid interest by $45,045.  There was no gain or loss related to the conversions.

 

 
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Table of Contents

 

During the year ended December 31, 2021, we issued the following promissory notes:

 

 

·

we issued a promissory note in the amount of $220,000, receiving proceeds of $208,000. The note matures February 17, 2022 and bears interest at 8% (24% default rate). They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion.

 

 

 

 

·

we issued a promissory note in the amount of $520,000, receiving proceeds of $500,000 with a discount of $136,844. The note matures September 3, 2022 and bears interest at 8%. They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion. We recorded a discount of $344,816 upon issuance consisting of 28,875 for the fair value of the 2,750,000 shares issued to entice the lender, an original issue discount of $20,000 and the initial derivative of $295,941. We amortized $283,590 of this discount to interest expense during the year ended December 31, 2021.

 

 

 

 

·

we issued a convertible note to a software developer to convert $247,426 of outstanding accounts payable into a convertible note. The initial derivative associated with this instrument was $109,247 of which we have amortized $55,248 as of December 31, 2021. The note is convertible at $0.008265 and is due September 3, 2022.

 

 

 

 

·

we issued a promissory note in the amount of $520,000, receiving proceeds of $500,000. The note matures August 17, 2022 and bears interest at 8%. They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion. We recorded a discount of $338,842 upon issuance consisting of 23,650 for the fair value of the 2,750,000 shares issued to entice the lender, an original issue discount of $20,000 and the initial derivative of $295,192. We amortized $87,035 of this discount to interest expense during the year ended December 31, 2021.

 

 

 

 

·

we issued a promissory note in the amount of $220,000, receiving proceeds of $208,000. The note matures December 28, 2022 and bears interest at 8%. They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion. We recorded a discount of $139,695 upon issuance consisting of $4,290 for the fair value of the 1,100,000 shares issued to entice the lender, an original issue discount of $7,000, $5,000 of associated legal fees and the initial derivative of $123,405. We amortized $7,189 of this discount to interest expense during the year ended December 31, 2021.

 

2022

 

During the year ended December 31, 2022:

 

 

·

we issued a promissory note in the amount of $108,000, receiving proceeds of $100,000. The note matures April 28, 2023 and bears interest at 8%. They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion. We recorded a discount of $69,523 upon issuance consisting of $8,000 of an original issue discount and the initial derivative of $61,523. At December 31, 2022, we had unamortized discounts of $29,855 for a net balance of $78,145.

 

 
F-14

Table of Contents

 

 

·

we issued a promissory note in the amount of $81,000, receiving proceeds of $75,000. The note matures July 5, 2023 and bears interest at 8%. They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion. We recorded a discount of $56,921 upon issuance consisting of $6,000 of an original issue discount, the initial derivative of $45,921 and $5,000 resulting from the fair value of 6,250,000 shares issued as an inticement for the loan. At December 31, 2022, we had unamortized discounts of $40,052 for a net balance of $40,948.

 

 

 

 

·

we issued a promissory note in the amount of $108,000, receiving proceeds of $100,000. The note matures November 1, 2023 and bears interest at 8%. They are convertible at 63% of the lowest closing bid price during the twenty days preceding the conversion. We recorded a discount of $68,851 upon issuance consisting of $8,000 of an original issue discount and the initial derivative of $60,851. At December 31, 2022, we had unamortized discounts of $62,105 for a net balance of $45,895.

 

Short-term notes payable

 

At December 31,2022, we owed AU$22,000 (US$14,989) to three Australian investors on promissory notes which contain no conversion privileges.

 

In addition, during the year ended December 31, 2022 we issued a promissory note in the amount of $54,000, receiving proceeds of $50,000 and incurring an original issue discount of $4,000. On this note, we also issued 1,600,000 common shares as an enticement for this loan which we valued at $3,200, also recorded as a debt discount (for a total initial discount of $7,200).  At December 31, 2022, we had unamortized discounts of $1,762 for a net balance ofr $52,238.

 

Imputed Interest

 

Certain of our promissory notes bear no nominal interest.  We therefore imputed interest expense and increased Additional Paid in Capital.  For the year ended December 31, 2022, we imputed $9,379 of such interest.  

 

 
F-15

Table of Contents

 

Derivative liabilities

 

The above-referenced convertible promissory notes issued during the year ended December 31, 2022 were analyzed in accordance with EITF 07–05 and ASC 815. EITF 07–5, which is effective for fiscal years beginning after December 15, 2009, and interim periods within those fiscal years. The objective of EITF 07–5 is to provide guidance for determining whether an equity–linked financial instrument is indexed to an entity’s own stock. This determination is needed for a scope exception under Paragraph 11(a) of ASC 815 which would enable a derivative instrument to be accounted for under the accrual method. The classification of a non–derivative instrument that falls within the scope of EITF 00–19 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non–derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability.  The EITF reached a consensus that would establish a two–step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First, the instrument's contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument's settlement provisions.

 

Derivative financial instruments should be recorded as liabilities in the consolidated balance sheet and measured at fair value. For purposes of this engagement and report, we utilized fair value as the basis for formulating our opinion which has been defined by the Financial Accounting Standards Board (“FASB”) as “the amount for which an asset (or liability) could be exchanged in a current transaction between knowledgeable, unrelated willing parties when neither party is acting under compulsion”. The FASB has provided guidance that its definition of fair value is consistent with the definition of fair market value in IRS Rev. Rule 59–60.

 

The Company issued certain fixed-rate convertible Subscription Notes from 2015 through December 31, 2022 in the United States and Australia  These convertible notes have become tainted (“The Tainted Notes”)  as a result of the issuance of convertible promissory notes issued in the United States since there is a possibility (however remote) that the Company would not have enough shares in the Treasury to satisfy all possible conversions.

 

The Convertible Note derivatives were valued as of issuance; conversion; redemption/settlement; and each quarterly period from March 31, 2018 through December 31, 2022. The following assumptions were used for the valuation of the derivative liability related to the Notes:

 

 

·

The stock price in this period would fluctuate with the Company projected volatility.

 

 

 

 

·

The notes convert with variable conversion prices based on the percentages of the low or average trades or bids over 20 to 25 trading days.

 

 

 

 

·

The effective discounts rates estimated throughout the periods are 37%.

 

 

 

 

·

The Holder would automatically convert the note before maturity if the registration was effective and the company was not in default.

 

 

 

 

·

The projected annual volatility for each valuation period was based on the historic volatility of the company are 169.0% – 210.0% (annualized over the term remaining for each valuation).

 

 

 

 

·

An event of default would occur 0% of the time, increasing 1.00% per month to a maximum of 20%.

 

 

 

 

·

The Holders would redeem the notes (with penalties up to 50% depending on the date and full–partial redemption) based on availability of alternative financing of 0% of the time, increasing 1.00% per month to a maximum of 5%.

 

 

 

 

·

The Holder would automatically convert the note at the maximum of 2 times the conversion price or the stock price on the date of valuation.

 

 

 

 

·

The Holder would automatically convert the note based on ownership or trading volume limitations.

 

 
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We recorded the initial derivative as both a derivative liability and a debt discount (or initial reduction in carrying value of the debt).  We then amortized the debt discounts using the Effective Interest Method which recognizes the cost of borrowing at a constant interest rate throughout the contractual term of the obligation.  The effective interest rates on the four instruments issued during the year ended December 31, 2022 range from 112% to 132%.

 

At each reporting date, we determine the fair market value for each derivative associated with each of the above instruments. At December 31, 2022, we determined the fair value of these derivatives were $877,534.

 

Changes in outstanding derivative liabilities are as follows:

 

Balance, December 31, 2021

 

$1,384,775

 

Changes due to new issuances

 

 

168,295

 

Changes due to extinguishments

 

 

(74,042)

Changes due to adjustment to fair value

 

 

(601,494)

Balance,  December 31, 2022

 

$877,534

 

 

Note 6 – Income Taxes

 

Deferred income taxes reflect the tax consequences on future years of differences between the tax bases:

 

 

 

12/31/22

 

 

12/31/21

 

Net operating loss carry-forward

 

$9,175,662

 

 

$8,095,091

 

 

 

 

 

 

 

 

 

 

Deferred tax asset

 

$1,926,889

 

 

$1,699,969

 

Valuation allowance

 

 

(1,926,889)

 

 

(1,699,969)

Net future income taxes

 

$-

 

 

$-

 

 

Deferred taxes for 2022 and 2021 are calculated using a marginal tax rate of 21%.  

 

In assessing the realizability of future tax assets, management considers whether it is more likely than not that some portion or all of the future tax assets will not be realized.  The ultimate realization of future tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of future tax liabilities, projected future taxable income and tax planning strategies in making this assessment.  Management has provided for a valuation allowance on all of its losses as there is no assurance that future tax benefits will be realized.

 

Note 7 – Subsequent Events

 

On January 19, 2023 the Board of Directors of the corporation voted unanimously to change the name of the issuer from Tautachrome Inc to ARtelligence Group Inc.  The name change is pending approval of FINRA.

 

On March 31, 2023, Timothy A. Holly, d/b/a Timothy A. Holly and Associates ("Holly"), who is also a director of the Company, exchanged an Exclusive Capital Lease of Trade Secrets of the PXR Tactical Platform and the PXR Strategic Platform trade secrets for five (5) shares of Series I Perpetual Preferred Stock from the Company.

 

We issued 366,115,787 shares in conversion of debt.

 

Note 8 – Contingencies

 

None

 

 
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Item 9.  Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

 

None.

 

Item 9A.  Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.  Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

 

Management’s Report on Internal Control over Financial Reporting.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act, as amended.  Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2022. In making this assessment, our management used the 2013 criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“2013 Framework”) in Internal Control-Integrated Framework.  A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. We have identified the following material weaknesses.

 

As of December 31, 2022, we did not maintain effective controls over the control environment.  Specifically we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K.  Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

 

 
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As of December 31, 2022, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

 

As of December 31, 2022, the Company did not establish a formal written policy for the approval, identification and authorization of related party transactions.

 

Because of these material weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of December 31, 2022, based on the criteria established in "Internal Control-Integrated Framework" issued by the COSO.

 

Change in Internal Control Over Financial Reporting

 

There were no changes in our internal control over financial reporting that occurred during quarterly period ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Attestation Report of the Registered Public Accounting Firm

 

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this annual report.

 

Item 9B.  Other Information

 

None

 

 
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PART III

 

Item 10.  Directors, Executive Officers, Promoters and Control Persons and Corporate Governance; Compliance with Section 16(a) of the Exchange Act

 

The following sets forth our directors, executive officers, promoters and control persons, their ages, and all offices and positions held. Directors are elected for a period of one year and thereafter serve until the stockholders duly elect their successor. Officers serve at the will of the Board.

 

Name

Position(s)

Age

Held Position(s) Since

 

 

 

 

Dr. Jon N. Leonard

President

82

May 21, 2015

 

Chief Executive Officer Director

 

 

 

Chief Financial Officer

 

 

 

Director

 

 

 

 

 

 

David LaMountain

Director

37

October 10, 2019

 

Chief Operations Operator

 

 

 

 

 

 

Timothy Holly

Director

74

December 22, 2022

 

Dr. Jon N. Leonard, Ph.D., M.S., B.S.

Dr. Jon N. Leonard has been the President, CEO, CFO and a director of the Company since May 21, 2015.

From June 2012 until November 2015, he was the President, Chief Executive Officer and a director of Click Evidence Inc., an Arizona corporation that he co-founded, which developed our KlickZie smartphone trustable imaging technology. Prior to that he directed counterterrorism technology development for the Raytheon Missile Company in Tucson, Arizona and before that was the Chief Scientist of the Strategic Systems Division of the Hughes Aircraft Company in El Segundo, California. Dr. Leonard holds a Ph.D. in mathematics from the University of Arizona, an M.S. in engineering from U.C.L.A. and a B.S. in physics from the University of Arizona

 

 
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David LaMountain

Mr. LaMountain has been a Tautachrome director and the Corporation’s Chief Operating Officer (COO) since his appointment in October 10, 2019, and was appointed to the position of CEO on October 26, 2022. With great people skills he has directed the Company’s social network activities since November 2016, providing strategic Investor Relations functions integrating communication, marketing and securities compliance enabling effective two-way communication between Tautachrome and its constituencies, contributing to achieving fair valuation of Tautachrome’s shares. Mr. LaMountain has been a successful business owner and investor/trader in public and private entities since 1999 and is a uniquely talented and driven individual with outstanding work ethics. He is also an inventor on KlickZie’s pending ARk patent, as well as several other newer inventions.

 

Timothy Holly

Timothy Holly is a businessman with forty years of innovative business experience. Mr. Holly is an expert in international business, with business activities in 114 countries, advising on $3.2 billion of assets under management, and acquiring assets appraised at over $2.1 billion.  He has a Juris Doctor Degree from John Marshall Law School and was a Fellow at the Fletcher School of Law and Diplomacy. He also has a BA from Indiana University, and is currently completing a Master of Strategic Leadership Development from Clayton State University. He has well-honed skills in mergers and acquisitions, asset management, commercial intelligence, trade and investment law, technology transfers, and international licensing. Mr. Holly is the Chairman and CEO of Red Alert Group, Inc., whose entities hold intellectual properties synergistic with Tautachrome, including one of the world’s most valuable collections of newspaper and magazine images.

 

Family Relationships

 

There are no family relationships between any of our executive officers and director

 

Involvement in Certain Legal Proceedings

 

Except as noted herein or below, during the last ten years none of our directors or officers have:

 

1.

had any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

 

 

2.

been convicted in a criminal proceeding or subject to a pending criminal proceeding;

 

 

3.

been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities;

 

 

4.

been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in securities or banking activities, or to be associated with persons engaged in any such activity;

 

 

5.

been found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

 

 
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6.

been found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;

 

 

7.

been the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (i) Any Federal or State securities or commodities law or regulation; or (ii) Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or (iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; o

 

 

8.

been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

 

Board of Directors and Committees

 

At December 31, 2022, our Board of Directors presently consisted of three members:  Dr. Jon Leonard, David LaMountain and Timoth Holly. Our Bylaws generally provide for majority approval of directors in order to adopt resolutions, and provide that the Board of Directors may be expanded by Board action.  All executive officer compensation, including payroll expenditures, salaries, stock options, stock incentives, and bonuses, must be approved by the unanimous consent of the Board of Directors.  The entire Board of Directors acts as the Audit Committee and the Compensation Committee.  

 

On future compensation matters, the Board will consider and recommend payroll expenditures, salaries, stock options, stock incentive and bonus proposals for our employees (if any).  Acting in its audit committee function, the Board reviews, with our independent accountants, our annual financial statements prior to publication, and reviews the work of, and approves non-audit services performed by, such independent accountants.  The Board appoints the independent public accountants for the ensuing year.  The Board also reviews the effectiveness of the financial and accounting functions and the organization, operation and management of our Company.

 

Delinquent Section 16(a) Reports

 

The following table identifies each person who, at any time during the fiscal year ended December 31, 2020, was a director, executive officer, or beneficial owner of more than 10% of our common stock that failed to file on a timely basis reports required by Section 16(a) of the Exchange Act during the most recent fiscal year:

 

Name

 

Number of

Late Reports

 

 

Number of

Transactions

Not Reported

on a Timely

Basis

 

 

Reports Not

Filed

 

Dr. Jon Leonard

 

 

0

 

 

 

0

 

 

 

0

 

David LaMountain

 

 

0

 

 

 

0

 

 

 

0

 

Timothy Holly

 

 

0

 

 

 

0

 

 

 

0

 

 

 
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Code of Ethics

 

We do not currently have a Code of Ethics, because we have only limited business operations, have a limited number of officers and directors, and believe a Code of Ethics would, at the present time, have limited utility. We intend to adopt such a Code of Ethics as our business operations expand and we have more directors, officers and employees.

 

Procedure for Nominating Directors

 

We have not made any material changes to the procedures by which security holders may recommend nominees to our board of directors.

 

The board does not have a written policy or charter regarding how director candidates are evaluated or nominated for the board. Additionally, the board has not created particular qualifications or minimum standards that candidates for the board must meet. Instead, the board considers how a candidate could contribute to the Company's business and meet the needs of the Company and the board.

 

Indemnification

 

Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Delaware.

 

Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Delaware law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.

 

Item 11.  Executive Compensation

 

Summary Compensation

 

Except for the employment agreement for CEO Dr. Jon N Leonard described below, during the years ended December 31, 2022 and 2021, no salary, bonus or other compensation was awarded or earned.  However, Jon Leonard was partially paid his accrued salary. Payments to him during 2022 amounted to $22,000.

 

We intend to adopt a compensation plan for executive officers when we have positive and stable cash flows for the purpose of: (a) attracting and retaining talented executive officers who can assist with our business strategy; (b) aligning the interests of those executive officers with those of the Company; and (c) linking individual compensation to the performance of the Company. Any such plan that we may adopt will be designed to provide compensation that is both in line with our fiscal resources and competitive with companies at a similar stage of development.

 

The elements of compensation to be awarded to, earned by, paid to, or payable to our executive officers are currently expected to be composed of: (i) base salary (or consulting fees); (ii) option-based awards; and (iii) cash bonuses or share-based awards for exceptional performance that results in a significant increase in stockholder value.

 

 
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Table of Contents

 

Base salary will be a fixed element of compensation payable to executive officers for performing the specific duties of their respective positions. The amount of base salary for each executive officer will be reviewed and set annually by the Board of Directors. While base salary is intended to fit into our overall compensation objectives by serving to attract and retain talented executive officers, the size of the Company and the nature and stage of its business will also impact the level of base salary.

 

We intend to use option-based awards as a variable element of compensation to attract and reward talented executives and professionals. Option-based awards are intended fit into our overall compensation objectives by aligning the interests of executive officers with those of the Company and linking individual compensation to its performance. The Board of Directors will be responsible for setting and amending any equity incentive plan under which an option based award would be granted.  Previous grants of stock options will be taken into account when considering new grants.

 

We intend to award bonuses at our sole discretion and do not have any pre-existing performance criteria or objectives.

 

At this time we do not provide medical, dental, pension or other benefits to our executive officers.

 

Employment Agreements

 

The Company has an employment agreement with Dr. Jon Leonard, the Company’s Chief Executive Officer at a compensation rate of $60,000 and six weeks per year of paid vacation.  Payment and vacation benefits began to accrue in June, 2019.

 

Other than the agreement in the previous paragraph, there are no employment agreements or arrangements, whether written or unwritten, between the Company and any of its executive officers. We do not contemplate entering into any other employment agreements with our executive officers until the Company has positive and stable cash flows.

 

Incentive Plans

 

The Company does not have any plan or arrangement providing compensation to executive officers or directors intended to serve as an incentive for performance to occur over any period.

 

Equity Compensation Plans

 

The Company does not have any stock option plans, stock appreciation rights or any other plan, contract, authorization or arrangement pursuant to which the executive officers or directors of the Company may receive equity-based compensation for their services to the Company.

 

Outstanding Equity Awards

 

No executive officer or director of the Company had any unexercised option, stock that had not vested or equity incentive plan award as at the end of the Company’s last completed fiscal year.

 

 
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Table of Contents

 

Pension and Retirement Plans

 

The Company does not have any plan or arrangement by which to provide pension, retirement or similar benefits to its executive officers or directors, and we do not currently intend to offer such any such plan or arrangement until we have positive and stable cash flows

 

Termination, Resignation or Change of Control

 

The Company is not a party to any contract or agreement, and has not entered into any plan or arrangement that may provide for payment to an executive officer or a director at, following, or in connection with the resignation, retirement or other termination of an executive officer or director, or a change of control of the Company or a change in the responsibilities of an executive officer following a change of control.

  

Compensation of Directors

 

The members of the Board of Directors do not receive compensation for their services as directors, but they are entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of our board of directors. We may pay cash compensation to an executive officer who is also a director, but only in his or her capacity as an executive officer. We do not currently have an established policy to provide compensation to directors for their services in that capacity.

 

Director Independence

 

Our Board of Directors has determined that none of our directors is “independent” as defined under the standards set forth in Section 303A.02 of the NYSE Listed Company Manual.  In making this determination, the Board of Directors considered all transactions set forth in the section titled “Certain Relationships and Related Transactions,” elsewhere in this prospectus.

 

 
20

Table of Contents

 

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

The following table sets forth, as of May 22, 2023, information concerning ownership of our voting shares by (i) each director, (ii) each executive officer, (iii) all directors and executive officers as a group, and (iv) each person known to us to be the beneficial owner of more than five percent of each class. The number and percentage of shares beneficially owned includes any shares as to which the named person has sole or shared voting power or investment power and any shares that the named person has the right to acquire within 60 days.

 

 

 

Common

 

 

Preferred E3

 

 

Preferred F5

 

 

% Total Voting, All 

 

 

 

 Shares

 

 

%1

 

 

 Shares

 

 

%

 

 

 Shares

 

 

%4

 

Classes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Beneficial Owner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5% Owners

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Michael Nugent

 

 

392,613,893

 

 

 

6.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arknet, Inc. (AZ Corp.)

 

 

 

 

 

 

 

 

 

 

40,000

 

 

 

100.0%

 

 

290,397

 

 

 

100.0%

 

 

40.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Officers and Directors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dr. Jon Leonard

 

 

1,237,829,545

 

 

 

19.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19.8%

David LaMountain

 

 

43,177,151

 

 

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Directors and Officers as a Group

 

 

1,281,006,696

 

 

 

20.5%

 

 

-

 

 

 

0.0%

 

 

-

 

 

 

0.0%

 

 

20.5%

 

(1)

Based on an aggregate of 6,237,077,061 shares of common stock outstanding at December 31, 2022.

(2)

Common stock holdings includes 126,166,322 shares of common stock held by California Molecular Electronics Corp., of which Dr. Leonard is the sole officer and director.

(3)

Each Preferred E share has the voting rights of all other voting shares combined, multiplied by 0.00001.

(4)

Based on an aggregate of 40,000 shares of preferred E stock outstanding at December 31, 2023.

(5)

Based on an aggregate of 290,397 shares of preferred F outstanding at December 31, 2023.

 

 
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The mailing address for all directors, executive officers and beneficial owners of more than five percent of our common stock is 1846 E. Innovation Park Drive, Oro Valley, Arizona 85755.

 

Unless otherwise stated, we believe that all persons named in the table have sole voting and investment power with respect to all shares of our common and preferred stock beneficially owned by them. For purposes hereof, a person is considered to be the beneficial owner of securities that can be acquired by such person within 60 days from the date hereof, upon the exercise of warrants or options or the conversion of convertible securities. Each beneficial owner's percentage ownership is determined by assuming that any such warrants, options or convertible securities that are held by such person (but not those held by any other person) and which can be exercised within 60 days from the date hereof, have been exercised.

 

Changes in Control

 

Except for the change of control giving El Dorado Family Group, Ltd. a 55% voting control in all voting matters, which change of control was publicly announced in out SEC 8-K filings on March 10th and March 13th 2023, we are not aware of any arrangement, the operation of which may at a subsequent date result in a change of control of the Company.

 

Item 13.  Certain Relationships and Related Transactions, and Director Independence

 

For the years ended December 31, 2022 and 2021, certain related parties made cash payments to the Company and the Company made cash payments to the related parties (see Note 3 to the financial statements).

 

Director Independence

 

As our common stock is currently traded on the OTC Bulletin Board, we are not subject to the rules of any national securities exchange which require that a majority of a listed company’s directors and specified committees of the board of directors meet independence standards prescribed by such rules.

 

Item 14.  Principal Accountant Fees and Services

 

Audit and Review Fees.  We paid M&K, CPAS, PLLC for audit and review fees of $29,000 for 2022 and $28,500 for 2021.

 

Tax Fees.  We have not paid any money for tax related services.

 

All Other Fees.   We have not paid any money for other fees.

 

Audit Committee pre-approval policies and procedures. The entire Board of Directors, which acts as our audit committee, approved the engagement of M&K, CPAS, PLLC.

 

 
22

Table of Contents

 

PART IV

 

Item 15.  Exhibits, Financial Statement Schedules, Signatures

 

Exhibit No.

 

Description of Exhibit

3.1

 

Articles of Incorporation of Roadships Holdings, Inc. filed as exhibit 3.1 with our Form 8-K/A filed April 20, 2009 and incorporated herein by reference

3.2

 

Bylaws of Roadships Holdings, Inc. filed as exhibit 3.2 with our Form 8-K/A filed April 20, 2009 and incorporated herein by reference

3.3

 

Amended and Restated Certificate of Incorporation filed with our Form 8-K filed November 5, 2015 and incorporated herein by reference.

21.1*

 

Subsidiaries of the Registrant

31.1*

 

Certification pursuant to Section 302 of the Sarbanes-Oxley act of 2002

32.1*

 

Certification of Officers pursuant to Section 906 of the Sarbanes-Oxley act of 2002 (18 U.S.C. section 1350)

 101.INS

 

Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).

 101.SCH

 

Inline XBRL Taxonomy Extension Schema Document.

 101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

 101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document.

 101.LAB

 

Inline XBRL Taxonomy Extension Labels Linkbase Document.

 101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

 104

 

Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

 

*Filed herewith

 

 
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SIGNATURES

 

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

Tautachrome, Inc.

 

 

 

 

 

 

/s/ David LaMountain

 

 

 

 

David LaMountain

 

 

Date: May 22, 2023

 

Director, CEO and CFO

 

 

 

 

 

In accordance with the Securities Exchange Act of 1934, this report has been duly signed by the following persons on behalf of the Company and in the capacities and on the dates indicated.

 

 
24