EDGAR 10-K Filing

Company CIK: 1138724
Filing Year: 2023
Filename: 1138724_10-K_2023_0001756125-23-000673.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS
Global Arena Holding Inc. (“the Company”), a Delaware corporation, is organized as a holding company. The Company became a public company on May 18, 2011, when it successfully completed a reverse merger with China Stationery and Office Supply, Inc., an OTC Bulletin Board company.
The Company currently has three subsidiary companies.
The Company, GAHI Acquisition, Tidewater Energy Group and GES do not trade crypto currency, nor do they participate in Initial Coin Offerings.
1) Global Election Services (GES)
GES, formed on February 25, 2015, provides comprehensive technology-enabled paper Absentee/Mail Ballot and Online election services to organizations such as craft and trade organizations, labor unions, political parties, co-operatives and housing organizations, associations and professional societies, universities, and political organizations. GES has developed proprietary election software for a data storage and retrieval registration system to determine voter eligibility and prevent duplicate votes with In-Person digital signature capture, as well as proprietary election software for scanning/tabulation utilizing advanced OMR/OCR/Barcode imaging software featuring de-skewing, de-speckling and image correction. The hardware includes high speed optical scanners that are hard lined to a computer with all Wi-Fi disabled so the entire tabulation process occurs offline, eliminating the opportunity for hacking. This system provides three types of audit capabilities.
GES is also working with multiple vendors and has made investments in companies that are developing Blockchain Technology for a data storage and retrieval registration system; tabulation of paper Absentee/Mail Ballots; and Internet voting.
The Company has also signed a Letter of Intent to acquire the assets of Election Services Solutions including all clients, contracts and employment contracts. This asset purchase is currently pending.
GES Acquisition of Election Services Solutions, LLC
On March 25, 2021, the Company entered into a second amended purchase agreement (APA) with Election Services Solutions. Under the second APA the Company entered into an amended asset purchase agreement with Election Services Solutions, LLC. Under the amended APA, the Company will purchase 100% of the assets of Election Services Solutions, LLC and the Company will pay $650,000, of which $511,150 has already been paid, and issue 40,000,000 common shares to purchase these assets under this second amended APA. This APA replaces the first amended purchase agreement signed on May 10, 2019 wherein the Company was to purchase 100% of the assets of Election Services Solutions, LLC. The Company was to pay $550,000, of which $511,150 has already been paid, and issue 20,000,000 common shares to purchase these assets under this first amended APA. GES derives over 80 % of its current business from Election Services Solutions. Management anticipates the closing of this transaction will occur in the second quarter of 2023.
The ESS asset acquisition will give GES the ability to expand into the following areas:
• Alumni Associations - The ESS team formally ran elections for Alumni organizations for over 25 years with memberships from 5,000 to 200,000.
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Labor Unions - The ESS Management team has a more than 40-year history in administering elections to organized labor unions.
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Pension and Retirement Groups - The ESS team formally ran elections for Pension and Retirement groups for over 25 years with memberships from 300,000.
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Credit Unions - The ESS team formerly ran elections for Credit Unions for over 25 years with memberships from 100,000 to 500,000.
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Professional Trade Associations - The ESS team formerly ran elections for Professional Trade Associations for over 25 years with memberships from 30,000 to 50,000.
GES Current Business
As one of the United States premier providers of comprehensive election services, GES focuses on efficiency, accuracy, integrity and security. GES prides itself on being able to provide flawless results regardless of the size or complexity of the project. GES helps organizations manage elections, strengthen corporate governance, increase member participation, and reduce costs.
Today’s election officials take on tremendous responsibility in managing all aspects of the voting process from selecting products to ensuring fair elections and every phase in between. In an industry that is constantly evolving, these tasks become more challenging every day. GES provides full-service technology enabled election solutions to clients while offering the experience, support, security, and capacity needed to meet ever-changing client needs now and in the future. GES believes it is unique in its ability to integrate multiple methods of voting; customers can hold elections via Paper Ballots by mail or in person, Internet Voting, or any combination of these methods, which GES refers to as Hybrid elections. Every project begins with a full review of the bylaws to ensure total compliance. GES then prepares a formal project plan and timeline. An experienced Election Administrator manages every facet of the project, while keeping the client fully informed every step of the way. GES provides telephone and/or email support for any procedural questions and help for management as well as voters. GES projects enhance the image of professionalism of the client organization, providing our clients with peace of mind every step of the way.
The GES’ senior management team has conducted approximately over 8,650 elections, involving more than 40,000,000 voters. Each organized labor election result requires an election certification submitted to the US Department of Labor, and for over 40 years, not one of our elections has been overturned.
Election security is an absolute priority for GES. We have seen emotions run high in many projects. Our focus on the security and confidentiality of election information diffuses most concerns and creates a broad consensus that the project is being conducted correctly and impartially. Election Committees regularly observe our processing and tabulation activities.
Paper Ballots; Absentee/Mail and In-Person Voting
GES management has been handling paper mail ballot and in-person elections for Labor Unions, Associations, and other private organizations for over 40 years. This process starts with a nominations meeting, creation and printing of the ballot and all materials. For an Absentee/Mail election, ballot packages are mailed to all eligible voting members. On the voting/tabulation day, GES collects the mail and uses the proprietary registration system that we developed to authenticate and register voters by scanning a barcode on the Business Reply Mail envelope with the ballot inside. For an in-person election, voters are authenticated in our system, and they sign a digital signature pad for registration. The authentication is based on a database provided by the client and any ineligible or challenged votes are removed. Once this list of valid voters has been compiled, we open the envelopes with identifiers and pull out the secret ballot envelope/sleeve containing the ballot. Once the ballots are pulled from the secret ballot envelopes/sleeves, we scan them using our proprietary software and hardware system to tabulate the votes. We uphold the essential requirements that the vote is secret, and each voter only gets one vote.
Organized Labor/Unions
Organized Labor Unions and their memberships in the United States are represented at the Local level, the regional level, and the international level. The smallest membership totals are at the Local level, groups of locals in a geographical area combine to make up a regional level, and all members belong to an International Level. Elections occur in all these groups and subsets of them, which means that there could be multiple votes for the same union throughout the year, with GES charging a per-member fee for each one. Most Nominations and Officer Elections for union leaders occur every two to three years. Additionally, GES is regularly involved in other types of elections, including: Strike Votes, Contract Ratifications, Delegate Nominations, Dues Increases, Assessments, By-Law Changes and Unexpired Term Votes, all of which can be done online. Each union has by-laws that dictate the process and how often these elections occur. Due to our experience, it is a natural progression for GES to expand into administering Regional and International elections, which GES has already begun to do.
In the fourth quarter of 2016, the U.S. Department of Labor (DOL) released official guidelines for voting online. Since then, we have worked to develop our systems to offer our customers the most advanced software available today. The DOL announcement has encouraged many unions to look into this option for non-officer elections because it is not only a more efficient process, but there is also a significant cost savings for the client.
Residential Organizations, Co-op/Condos
GES has been conducting elections for Homeowner and Co-Op Organizations for more than forty years. At GES, we understand the sensitivity of the project, and the need to present a flawless experience to the owners. GES is the independent and impartial third-party Organizations can trust to manage an election and provide an organization with the tools essential to strong leadership and good governance. GES provides complete management of an election project, from initial design of voting materials through tabulation. We support in-person, paper mail, and Internet voting using ballots or proxies. Signature verification, slates, and weighted, or share, voting are standard. No activity proceeds unless there is a quorum present. Interim results are available immediately and certified results normally follow within 24 hours. The GES Team has conducted elections at properties with fewer than 200 Membership Interests, and with more than 10,000. We have also conducted lotteries for public housing agencies including Section 8 Housing.
Now more than ever it is important to know what property owners are thinking. For many clients, we've included a limited set of survey questions on the proxy for the Board election. This technique has proven effective in capturing voter interest and stimulating turnout, in addition to providing valuable feedback on the important issues. GES can develop a regular program of surveys to help the client more effectively gauge members' views on needed improvements, regulatory matters, or other association-related issues. This interaction is made even easier utilizing GES’ online voting platform.
GES Developed Election Technology
Voter Authentication and Registration Software
GES has worked diligently to create a very specific proprietary registration election software that functions in authenticating and registering voting members in a data look-up system. In the event of an In-Person election, a voter ID can be scanned, or information typed in to pull that voter up. A digital signature is then captured and saved to complete the voter’s registration and is available in a final list of ‘Who Voted”. In the event of a Mail
Ballot, a barcode on the Business Reply Envelope is scanned and the status of that member is identified. If the member is not eligible to vote, that ballot is removed from the count. Additionally, if a member requests a replacement ballot and mails back that and the original, the system will flag the duplicate ballot, which is removed from the valid ballots ensuring only one ballot from each voter is counted. Because we must account for every single ballot, the system has multiple reporting options where we may deliver to the client the list of members who mailed in a ballot but were not able to vote, detailing the reason.
Scanning and Tabulation Software
The GES proprietary scanning election software is advanced OMR/OCR/Barcode scanning and tabulation software featuring de-skewing, de-speckling, and image correction. The computer hardware utilizes high-speed optical scanners and was designed to run hard wired without Internet or Wi-Fi access, ensuring complete security. The system allows for triple auditing capabilities, which are; electronically generated tabulation results, jpeg imaging and storage, and the original physical ballot. This advancement gives GES the ability to tabulate elections faster and more efficiently and brings the opportunity for GES to compete for larger elections. GES began successfully deploying this system in our elections during the third quarter of 2017.
Online Voting
GES has a current client base of hundreds of unions. GES is committed to providing a comprehensive, secure voting platform, using state of the art technology for election officials charged with running their elections. We also offer the option for a “hybrid” election, which allows members to choose a Mail Ballot, In Person and/or Online Voting options, while ensuring no one votes twice. GES strives to build a user experience that limits human error and makes the voting process as easy and seamless as possible while ensuring the highest level of secrecy, security, and One Voter = One Vote integrity that we have been committed to for nearly 4 decades.
In 2020, GES developed, built, and implemented a propriety online election voting solution that is compliant with Title IV of the United States Department of Labor Office of Labor-Management Standards. GES built the platform on one of the most secure global infrastructures Amazon Web Services (AWS) which is a comprehensive, evolving platform provided by Amazon that includes a mixture of infrastructure as a service (IaaS) platform as a service and packaged software (PaaS), and software as a service offering (SaaS). The platform enables GES to protect individual client data, including the ability to encrypt it, move it, and manage retention (if required). All data flowing across the global network interconnects with the GES secured data center and is automatically encrypted at the physical layer before it leaves our secured facilities. Additional encryption layers exist as well. GES controls where our client data is stored, who can access it, and what resources your organization is utilizing at any given moment. Fine-grain identity and access controls combined with continuous monitoring for near real-time security information ensures that the right resources have the right access at all times, wherever your information is stored. GES encryption software uses AES 256 with a cryptographic key using an RSA elliptic curve of 4096, which is used to encrypt the communication of the client and the GES server, as well all client data hosted in the server. A six-digit security code, delivered to the voter’s email address provided by the client, must be validated by the prospective voter in order to authenticate the identity of the voter before the voter may access the ballot. After validating the voter, the voter then votes anomalously, so that the identity of the voter and the ballot cast can never be matched. The GES voting platform verifies that the users does not use the back and forward browser button, a safe mechanism against tampering. Distributed denial of service DDoS protection tools help secure websites and applications and prevent DDoS attacks, which bombard websites with traffic traditionally delivered via “botnets" that are created by networked endpoints connected via malware. The DDoS software protection provides always-on detection and automatic inline mitigations that minimize application downtime and latenc. The GES platform also provides voting features such as posting documents like candidate statements, pictures, contracts, or amendments to be voted on.
Current GES Technology Providers
GES is currently working with the following software individuals, companies with our efforts being dedicated to:
• Ensuring the highest level of security protocols that comply with all necessary standards
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Developing a Registration System supported by Blockchain Technology for security
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Building an interface that is instinctive and user-friendly
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Customizing for specific sectors’ rules and requirements
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Allowing for scalability while maintaining integrity
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Growing our client list by offering high quality technology solutions
By working with Magdiel Rodriguez, Imaging 101, True Vote Inc, Voatz Inc, and Blockchain Valley Ventures, GES is working to design and create information technology and information systems management including software development services, infrastructure, network, support, corporate security, and risk management.
Imaging 101 is a technology company, TrueVote Inc, Voatz Inc are Blockchain technology companies and Blockchain Valley Ventures is Blockchain Advisory company.
Working Relationship with Magdiel Rodriguez
On January 14, 2022, GES entered into an Independent Consulting Agreement (ICA) with Magdiel Rodriquez. Under the terms of the ICA Magdiel Rodriquez will receive 15,000,000 million common shares in return for his software expertise in the development of GES election software. This new ICA replaces an amended MSA signed May 13, 2019 with HCAS and Magdiel Rodriquez wherein the Company was to issue a total of 30,000,000 warrants to purchase the Company’s common shares at a price of $0.005 as consideration for the services of HCAS and Mr. Magdiel Rodriquez. Mr. Rodriguez has over 25 years’ experience in the areas of Information Security, Enterprise Risk Management and Compliance, Information Technology and Operations including 21 years with Visa Inc. where he performed as Senior Business Leader of Information Security. Magdiel has extensive experience in a broad range of areas related to Information Security, Network Engineering, and Enterprise Governance, Risk and Compliance and Payment networks within the financial industry. Management anticipates the closing of this transaction will occur in the second quarter of 2023.
Working Relationship with Imaging 101
Imaging 101, a technology company based in Ft. Lauderdale, FL has developed for GES a specific registration software that functions in authenticating and registering voting members in a data look-up system. In the event of an In-Person election, a voter ID can be scanned, or any information typed in to pull that voter up. A digital signature can also be captured and saved for the final list of ‘Who Voted”. In the event of a Mail Ballot, a barcode on a Business Reply Envelope is scanned and the status of that member is identified. If the member is not eligible to vote, that ballot is removed from count. Because we must account for every single ballot, the system has multiple reporting options where we may deliver to the client the list of members who mailed in a ballot but were not able to vote, detailing the reason.
Imaging 101 also developed for GES an advanced OMR/OCR/Barcode scanning and tabulation software system featuring de-skewing, de-speckling, and image correction. The computer hardware was designed to run hard wired without Internet or Wi-Fi access, ensuring complete security. The system allows for triple auditing capabilities, which are; electronically generated tabulation results, jpeg imaging and storage, and the original physical ballot. This advancement gives GES the ability to tabulate elections faster and more efficiently and brings the opportunity for GES to compete for larger elections.
GES Investment in TrueVote Inc.
On June 15, 2019, GES entered into a Term Sheet, and Common Stock Purchase Agreement to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES was to invest $50,000 into a 24 Month Debenture and issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The Company will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc. The Company on December 17, 2019 paid $ 40,000 to True Vote. Under the terms of the agreement GES is to invest an additional $10,000 and the Company issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The transaction closed on February 27, 2023.
GES on January 21, 2022 signed a Master Service Agreement with Voatz Inc, provide a secure voting platform requiring specific proprietary software that allows for secure online rank choice voting tabulator system , and retained Voatz Inc to create a readiness evaluation and related technical services to GES in the 2nd and third quarter of 2022. GES has a continuing working relationship with Voatz Inc. relating to online voting for non-officer Department of Labor elections.
2) Tidewater Energy Group Inc.
On November 19, 2019, the Company incorporated a new wholly owned entity in the State of Delaware called Tidewater Energy Group Inc. The Board of Directors appointed John S. Matthews and Jason Old as Board members. The Company was formed to explore opportunities in the oil, gas, mineral, and energy business. Tidewater Energy Group Inc. has 40,000,000 common shares authorized; par value $0.001. There are currently 10,000,000 common shares issued and outstanding of which the Company holds 5,100,000 common shares (51%). The Company invested $50,000 into Tidewater Energy Group Inc. for general capital and administrative expenses in January 2020. The Company plans to close in the second quarter of 2023.
3) GAHI Acquisition Corp.
On June 7, 2019, the Company’s second subsidiary, GAHI Acquisition Corp. (GAHI) was authorized by the Company’s Board of Directors to infuse an initial deposit of $50,000 into the subsidiary for general capital and administrative expenses. GAHI Acquisition was to be be repurposed in order to explore potential new business ventures in an effort to increase shareholder value. The Company cause GAHI Acquisition to explore opportunities in the energy and minerals business which may have provided investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. The Company added Mr. Jason N. Old to the GAHI Acquisition Board as a Director. On November 28, 2019, the Company’s Board of Directors authorized the termination of the transaction previously authorized to infuse an initial deposit of $50,000 into GAHI Acquisition for general capital and administrative expenses and have GAHI Acquisition repurposed in order to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. GAHI Acquisition will remain a 100% subsidiary of the Company and will focus on Blockchain related companies for investments and acquisition.
4) Fortis Industria, LLC
On January 26, 2023, the Company filed Articles of Organization with the State of Nevada to create a limited liability company called Fortis Industria, LLC. The Company owns 90% of the member interests. John S. Matthews, an officer and director of the Company owns 5% of the member interests.
Fortis will enter into a purchase and sale agreement with RPM Management LLC, to purchase 51% ownership of 152 oil wells located in Oklahoma, USA. There are currently 46 producing wells, with 23 oil wells to be opened in the next 12 months, with a remaining 83 wells to be opened thereafter.
Growth Strategy for the Company
Management believes there are four significant opportunities to increase market share;
1) The growth and expansion of GES current business and the expansion into paper absentee/mail for US Government and Foreign elections.
2) The additional development of interactive communication, between elected individuals and their constituents;
3) The development of Blockchain voting applications.
4) The diversification of Tidewater Energy Group Inc.
1) Management believes there is an opportunity in conducting United States and Foreign Government Elections. GES’ senior Management teams’ primary business for over 40 years has been mail/absentee ballot elections. The market for GES conducting paper/mail ballot elections grew exponentially in January of 2017, when first President Barack Obama, and then President Donald Trump designated U.S. Elections “Critical Infrastructure”.
In the U.S. there are 3,007 counties, 64 parishes, 19 organized boroughs, 11 census areas, 41 independent cities, and the District of Columbia, all of whom purchase updated Election Machines and Software. Each municipal county individually purchases election voting machines under the guidance of their own State’s Secretary of State, recommendations from the National Association of Secretaries of State (NASS), and local election regulations .
The United States Government, through the Elections Assistance Commission, certifies election software and hardware for use in U.S. Government Elections.
The size and scope of the opportunity in US Government elections can be measured in recent legislation providing funding to US municipalities.
On March 27, 2020, President Donald J. Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law. The Act includes $400 million in new Help America Vote Act (HAVA) emergency funds, made available to states to prevent, prepare for, and respond to the coronavirus for the 2020 federal election cycle. This supplemental appropriation funding, distributed by the U.S. Election Assistance Commission (EAC), will provide states with additional resources to protect the 2020 elections from the effects of the novel coronavirus.
On December 20, 2019, President Trump signed the Consolidated Appropriations Act of 2020 into law. The Act includes $425 million in new HAVA funds made available. On March 23, 2018, President Trump signed the Consolidated Appropriations Act of 2018 into law, which included $380 million in Help America Vote Act (HAVA) grants for states to make election security improvements.
Among the authorized uses of the grant funds is the replacement of voting equipment, specifically equipment that does not produce a paper record or that is determined to be at the end of its useful life. Recent published examples are:
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In 2019, Hawaii (SB 166) allocated $789,598 for the purpose of a vote counting system contract.
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In 2019, Georgia issued a $150 million bond package for the replacement of voting equipment statewide. The state also appropriated $12,840,000 from the General Fund for the purpose of financing projects and facilities for the Office of Secretary of State.
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In 2019, Wyoming appropriated $7.5 million into an election readiness account (HB 21). The state's $3 million HAVA allocation will also be placed in this account, the majority of which will go toward replacing outdated voting equipment statewide.
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In 2019, North Dakota enacted SB 2002, which included a one-time appropriation for voting equipment and electronic poll books statewide. The total amount of $11.2 million included $8.2 million in state funds and $3 million in HAVA funds.
The opportunity for mail/absentee ballots became a page one story in 2020 due to the Coronavirus Pandemic. Subsequent accusations of voter fraud, compounded by President Trump declaring the 2020 U.S. election voting as rigged and fraudulent, has led to almost 40% of the U.S. Electorate believing the 2020 election was fraudulent.
On October 23, 2019, the Brennan Center has estimated that the national cost for some of the most critical election security measures to be approximately $ 2.2 Billion dollars over the next five years. The opportunity is even greater in the midst of the coronavirus pandemic. Due to social distancing requirements, voters should not be congregating at polling locations for In-Person voting. Mail and Absentee Ballot voting has emerged as a safe alternative to In-Person voting and which is a complicated process that requires a company like GES that has significant experience in conducting Mail Ballot voting to avoid problems.
The Elections Assistance Commission (EAC) updated their Voluntary Voting System Guidelines to 2.0 in February 2021. This certification process can take approximately 6 to 9 months and companies applying for certification can spend up to $2,000,000 or more. With the current compliance directives also in place in many individual States, the Company and GES anticipate annual software maintenance of approximately $250,000.
The Company and GES have previously engaged software and hardware developers and GES is currently preparing request for proposals to assist in the development of additional and hardware development to comply with the EAC 2.0 Voluntary Voting System Guidelines. This will require the hiring of additional technical software employees, and additional outside vendors who in initial discussions will require fees of approximately 2 million dollars and stock-based compensation
In an effort further prove GES ability to administer municipal and government elections, GES in the 1st quarter of 2020 administered the private government election space when GES successfully completed the Statewide Presidential Primary for North Dakota Democratic-NPL. GES administered the statewide polling for all North Dakota residents who wished to vote in Democratic Presidential Primary by; managing a call center and processed over 3,000 mail ballot requests, set up equipment and trained Staff on our proprietary Registration Software for In-Person voting at 14 locations across the state, and processed over 14,000 ballots with our proprietary Scanning and Tabulation software system.
GES’ IT staff customized our proprietary Voter Registration software to ensure voters cast only one ballot, whether by mail or in person and set up secure servers that processed voter sign-in and digital signature capture in real time from a database of over 600,000 potential voters. GES trained over 100 volunteers, many with limited or no technology experience on how to use the system. After a short tutorial, those volunteers handled the increased registration volume with ease. After the polls closed and all the votes were cast, GES’ tabulation systems processed the ballots using our proprietary Scanning and Tabulation software system. The 2020 North Dakota Democratic-NPL Presidential Primary caucus had the largest voter turnout in over a decade.
Management believes there is an opportunity in conducting United States and Foreign Government Elections. GES’ senior Management teams’ primary business for 40 years has been mail/absentee ballot elections. The market for GES conducting paper/mail ballot elections grew exponentially in January of 2017, when first President Barack Obama, and then President Donald Trump designated U.S. Elections “Critical Infrastructure”. The effect of these Executive Orders was to refocus the Department of Homeland Security, and the Elections Assistance Commission to reenergize compliance on U.S. Government elections, and assist by making available resources such as intelligence, funding, training and best practices in election software and hardware, for all fifty States.
GES has begun undertaking the following six step benchmarks to qualify for the updated U.S. certification and is also considering individual State certifications.
Step 1 -
Voting System Testing, Testing current developed systems to U.S. Federal 2.0 Standards
Step 2 -
Technical Data Package Review; Reviews submitted documents against documentation requirements of outside agencies, published standards, or U.S. specifications
Step 3 -
Physical Configuration Audit; Examines the documentation of the system against the actual submitted system
Step 4 -
System Integration Testing; Executes tests on all components of a system configured as if the system was deployed
Step 5 -
Functional Configuration Audit; Examines submitted test data and conducts additional testing to verify submitted system hardware and software described in the documents submitted to the Elections Assistance Commission and the Department of Homeland Security
Step 6 -
Security Testing; Performs vulnerability assessments and penetration analysis to assess system vulnerabilities
Most states have a vote by mail process right now. Voters may request an Absentee Mail Ballot from their County Board of Elections, or a Vote by Mail ballot is sent. In either case, our proprietary registration and tabulation software has an immediate need. In the 2020 election, 69% of voters nationwide cast their ballot nontraditionally by mail and/or before Election Day. This is the highest rate of nontraditional voting for a presidential election since questions regarding voting method have been included in the survey. By comparison, about 40% of voters cast their ballots by mail and/or prior to Election Day in 2016. Much of the surge in nontraditional voting was due to an increase in mail-in voting.
In 2020, 43% of voters cast ballots by mail and another 26% voted in person before Election Day. In 2016, 21% mailed in their ballots and 19% voted in person prior to Election Day. (US Census Bureau 4/29/21)
Most individuals think only of the Presidential election every four years as the Election. In reality, municipal Board of Elections throughout the U.S. are conducting elections annually for such elected positions as; Governor, Mayor, City Council, State Assembly, State Senate, Members of U.S. Congress (House every 2 years, Senate every 6) Civil and Criminal Justices, Sheriffs, School Boards, Village Trustees, etc. In short, most State and local municipal Board of Elections are in the market purchasing software and hardware every year.
2) Management also sees an opportunity in developing and creating Blockchain Voting Technology, and is working with Blockchain Valley Ventures and TrueVote Inc, which Management believes could positively impact Global in many aspects of its business, including;
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Securely storing and creating accurate Voter Registration Information on the blockchain.
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Creating an international capability to administer or joint venture in conducting foreign government elections.
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Creating a secure Internet voting record on the blockchain for online elections.
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Administer Financial Services Elections, such as Proxy’s and shareholder votes.
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Documenting current voting applications.
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Reducing cost and time of delivery, enabling scalability.
Blockchain Valley Ventures
On June 27, 2019, Blockchain Valley Ventures and GES signed an amended agreement calling for a $25,000 CHF payment for the development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies, wherein BVV was to serve as an advisor in connection with a Voter Registration, Voter Authentication, and Voter Eligibility using a Blockchain Platform and GES would pay BVV $ 25,000 CHF payment upon completion of the engagement. This agreement replaced a June 19, 2019, engagement letter with Blockchain Valley Ventures (“BVV”) of Zug Switzerland. Under the terms of the original agreement, GES was to pay BVV 50,000 Swiss Francs (CHF).
GES made payments of $25,000 CHF and received the working paper primarily covering the following matters:
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Development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies such as Phoenix Systems AG, Securosys AG and others as well as any subject matter expert to be invited by Global Election Services Inc.
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Development of a high-level technology solution architecture and its requirements for the blockchain based voting registration platform with inputs from third party blockchain technology.
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Documentation of the results of a) and b) in order to provide the basis of the technical development of the platform.
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Development of an implementation recommendation with respect to Voting on the Blockchain Platform.
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Legal facilitation with respect to outside tax and legal advisors in connection with compliance with local and international regulation.
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Project Management during the engagement.
The Working Paper discusses a high-level envisaged Blockchain platform, including a foundational flowchart, and implementation recommendation; BVV is a Crypto Valley, Switzerland based venture capital firm who consists of highly successful entrepreneurs, finance experts, blockchain technology experts and ICO experienced analysts and consultants. The documents created will be used by GES, to begin to create a Minimal Viable Product. This Product, along with GES licensing rights on GES existing Registration and Tabulation Software will be owned by GES. The Working Paper was completed in 2022.
GES is developing with TrueVote, Inc. a comprensive end-to-end, decentralized, completely digital voting system. GAHC, GES parent owns 30% of True Vote.The TrueVote Voting System will be based on traditional, proven database methodologies and layered with a “checksum” that is posted on the blockchain, proving all data is immutable and unalterable.
On June 1, 2021, TrueVote issued its White Paper “A transparent Electronic Voting System validated by the Bitcoin Blockchain” TrueVote, Inc. is building a comprehensive end-to-end, de-centralized, completely digital voting system. This will be based on traditional, proven database methodologies, and layered with a "checksum" that's posted on the Blockchain, proving all data is immutable and unalterable. This design will ensure that every vote is transparently counted and verifiable.
True Vote is directed by Brett Morrison recently the Director of Enterprise Information Systems at SpaceX. Brett was as an e-commerce pioneer, getting brands online and creating a new channel for sales at the beginning of the e-commerce boom. Brett co-founded Onestop Internet in 2003 out of his garage and built the original e-commerce and warehouse management software that started the company. Throughout his time as Chief Technology Officer and Chief Innovation Officer at Onestop, he oversaw and managed its growth and architected and helped build the new Onestop 2.0 platform. Prior to Onestop, Brett co-founded one of the first photo sharing companies on the Internet, ememories.com, which was sold to PhotoWorks, one of the largest photo processing companies in the U.S. True Vote is also directed by Ped Hasid who graduated UCLA with Magna Cum Laude Honors in 2007. Ped later went on to cofound Block26, a venture vehicle for the DLT space established in 2014, leading the technology and investment strategy for the firm. Block26 to date has financed and incubated innovative projects that aim to enhance consumer adoption of DLT technology.
3) Interactive Communication Software
GES is working to provide our current and future clients with the ability to understand in real time instant communication and feedback with their members, using many social media platforms available today.
GES is working with third party vendors to:
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Communicate a Message - An organization can get their message out clearly in the form required, without any
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unwanted media spin, bias, filtering, or comment.
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Fine Tune Policies - Test-drive policies and projects with immediate response, allowing for responsive adjustments
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to be made to make a message more acceptable to the community.
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Build a Positive Image - Enhancing the concept of ‘open communication’ and ‘democratic politics’, which leads to
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an increasingly positive perception of leaders by their constituents.
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Learn More About a Group - Learning more about a group’s preferences and opinions on an infinite number of
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topics can help the Organization, Institution or League and leaders can better serve its community and
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meet their needs in a variety of ways.
Management believes this type of interactive software capabilities will give GES an opportunity to offer clients the ability to communicate in real time with their members; raising issues of concern, polling the attitude of their constituencies, interacting in question-and-answer seminars in addition to conducting elections that GES certifies. In short, this software can be used in multiple formats for people to communicate instantly on issues of importance.
4) Tidewater Energy Group was formed for the purpose of creating diversification for the Company. Directed by Jason Old, Tidewater Energy Group brings a number of seasoned, well-respected members of the Energy Industry to the Company.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
Not applicable to a smaller reporting company.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
The Company maintains a holding address at 208 East 51st Street, Suite 112, New York, NY 10022. During the years ended December 31, 2022, and 2021, the Company paid $17,344 and $12,651 for all office, storage, and other expenses, respectively.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS.
The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.
On December 26, 2017, the Company entered into a settlement agreement with a prior attorney with regards to outstanding legal fees owed. Pursuant to this settlement agreement, the Company paid $25,000 on January 5, 2018, and $25,000 on February 5, 2018, and was required to pay an additional $200,000 during 2018. On December 14, 2020, parties amended the settlement agreement to state that the Company shall pay the prior attorney Two Hundred Nineteen Thousand, Five Hundred and Seventy Six Dollars ($219,576). On January 27, 2021, the Company made a payment of $5,000, on April 12, 2021, the Company made a payment of $15,000, on August 6, 2021, the Company made a payment of $5,000. On October 1, 2021, the Company made a payment of $5,000 and on November 12, 2021, the Company made a payment of $10,000. On January 7, 2022, the Company made a payment of $5,000 and on February 18, 2022, the Company made a payment of $5,000. On May 5,2022 the Company made payments of $5,000 and on June 22, 2022, the Company made payments of $5,000. On December 5,2022 the Company made payments of $5,000.
On October 16, 2020, the Company’s subsidiary, Tidewater Energy Group Corp. was named as a defendant in a lawsuit filed in District Court in and For Tulsa County, State of Oklahoma, CJ-2020-3172. On January 13, 2021, the plaintiffs added the Company to the lawsuit. The plaintiffs are seeking damages, disgorgement and specific performance relief relating to a Purchase and Sale Agreement to purchase all of the membership interests in Foster Energy. The Company has obtained counsel to dispute the charges. On March 18, 2021, the Company filed a motion to dismiss and brief in support. The Company asserted that the plaintiffs’ claims are entirely without merit as the Company was not a party to the Purchase and Sale Agreement or the related non-disclosure agreement. Tidewater concurrently filed a motion to dismiss based on legal remedies available to Tidewater. On December 7, 2022 the case was dismissed with each party bearing their own attorney fees and costs.
On March 31, 2022, the Company was named as a defendant in a lawsuit filed in the Supreme Court of the State of New York, Index No. 651531/2002. The plaintiff has alleged breach of contract and unjust enrichment. The plaintiff is seeking damages relating to a plaintiff’s prior employment agreement with the Company. The Company has obtained counsel to dispute the charges.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURE
None
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Item 5(a)
a) Market Information. The Company began trading publicly on the NASD Over the Counter Bulletin Board on July 19, 2006. We began trading under the symbol GAHC on May 27, 2011, and now trade under the symbol “GAHC” on the OTC Markets Pink Sheets. The quotations represent inter-dealer prices without retail markup, markdown or commission, and may not necessarily represent actual transactions.
The following table sets forth the high and low sales prices for our common stock, which has been listed on the OTC Markets Pink for all periods presented.
Year Ended December 31, 2022
High
Low
3/31/22
$
.0132
$
.0120
6/30/22
$
.0072
$
.0060
9/30/22
$
.0048
$
.0036
12/31/22
$
.0012
$
.0010
Year Ended December 31, 2021
High
Low
3/31/21
$
.0768
$
.0540
6/30/21
$
.0420
$
.0384
9/30/21
$
.0288
$
.0262
12/31/21
$
.0180
$
.0168
b) Holders. As of April 5, 2023, there were 165 shareholders of record of our common stock.
c) Dividends. Holders of our common stock are entitled to receive such dividends as may be declared by our board of directors. No dividends on our common stock have ever been paid, and we do not anticipate that dividends will be paid on our common stock in the foreseeable future.
d) Securities authorized for issuance under equity compensation plans.
Stock Awards plan
In June 2011, the Board of Directors adopted a Stock Awards Plan (“Plan”). The purpose of the Plan is to attract, retain and motivate employees, directors and persons affiliated with the Company and to provide such participants with additional incentive and reward opportunities. The awards may be in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, phantom stock awards, or any combination of the foregoing. The total number of shares of stock reserved for issuance under the Plan is 3,000,000.
On December 8, 2017, the Company granted stock options to purchase 45,000,000 shares of the Company common stock. The options were fully vested when issued with a fair value of approximately $972,000 at the grant date. Weighted average assumptions used to estimate the fair value of stock options on the date of grant are as follows:
December 8,
Expected dividend yield
0%
Expected stock price volatility
478%
Risk free interest rate
2.14%
Expected life (years)
5 year
The stock-based compensation related to stock options, included in stock compensation expense in the consolidated statements of operations, was $0 and $0 for the years ended December 31, 2022 and 2021, respectively.
The exercise price for options outstanding at December 31, 2022:
A summary of the option activity is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Price ($)
Life (in years)
Value ($)
Outstanding, December 31, 2020
48,000,000
0.02
1.79
-
Granted
-
Exercised
-
Forfeited/Canceled
(33,000,000
)
Outstanding, December 31, 2021
15,000,000
0.02
1.19
-
Granted
-
Exercised
-
Forfeited/Canceled
-
Outstanding, December 31, 2022
15,000,000
0.02
0.19
-
Exercisable, December 31, 2022
15,000,000
-
e) Performance graph. Not applicable.
f) Sale of unregistered securities.
On July 27, 2022, the Company authorized the issuance of 480,000 shares Series C Preferred Stock at $.001 per share as follows:
120,000 Series C Preferred Shares - John Matthews, CEO/CFO
120,000 Series C Preferred Shares - Martin Doane, Director
120,000 Series C Preferred Shares - Facundo Bacardi, Director
120,000 Series C Preferred Share - Kathryn Weisbeck, Director of Public Relations/Marketing
The above shares were issued in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving a public offering.
Common Shares
On April 28, 2016, the stockholders approved an amendment to the Company’s articles of incorporation to increase the number of authorized common shares from 100,000,000 to 1,000,000,000. In addition, the stockholders also approved an amendment to the Company’s Stock Awards Plan, originally filed June 27, 2011, which will increase the number of shares authorized to be issued under the Plan from 3,000,000 shares to 7,460,000 shares.
On September 7, 2021, the stockholders of the Company re-elect the three (3) directors to serve as members of the Board of Directors of the Company to serve for the ensuing three years and or until their successors are duly elected and qualified. The directors named to our Board are John Matthews, Martin Doane, and Facundo Bacardi;
On September 7, 2021, the stockholders of the Company voted to authorize an increase in the Company’s authorized capital stock to 4,000,000,000 (four billion);
On September 7, 2021, the stockholders of the Company voted to authorize the Company to effectuate a 1 for 12 reverse split of the outstanding common shares;
On September 7, 2021, the stockholders of the Company voted to ratify the appointment of Raul Carrega, CPA as the Company’s independent registered public accounting firm for the year ending December 31, 2021;
On October 5, 2022, the company announced that the Financial Industry Regulatory Association (FINRA) confirmed the below listed corporate actions requested by the Company:
• 1 for 12 Reverse Split
•
New Cusip: 37951M300
•
Current CUSIP: 37951M102
•
Daily List Announcement Date: 10/4/2022
•
Market Effective Date: 10/5/2022
Following the reverse split there are approximately 216,571,612 shares of the Company’s common stock issued and outstanding which represented approximately 2,598,858,127 before the reverse stock split.
During the year ended December 31, 2022, the Company issued:
•
556,317,702 shares of common stock for conversion of $360,946 of convertible notes and $59,167 of accrued interest.
•
52,244,626 shares of common stock issued for cashless exercise of 60,729,543 warrants.
•
2,598,858,127 shares of common stock were canceled and converted to 216,571,612 shares.
During the year ended December 31, 2021 the Company issued:
•
240,365,865 shares of common stock for the conversion of $270,149 of convertible notes and $102,179 of accrued interest;
•
1,072,893 shares of common stock for services rendered valued at fair value of $5,472. The shares were valued at 0.0051.
•
75,000,000 shares of common stock in connection with a note settlement agreement valued at fair value of $487,500.
•
15,104,894 shares of common stock issued for cashless exercise of 24,545,454 warrants.
Warrants
A summary of warrant activity is presented below:
Number of
Warrants
Exercise
Price ($)
Contractual Life
(in years)
Intrinsic
Value ($)
Outstanding, December 31, 2020
534,758,706
0.009
1.80
32,015
Granted
99,188,311
0.005
Exercised
(24,545,454
)
0.005
Forfeited/Canceled
(69,608,333
)
0.010
Outstanding, December 31, 2021
539,793,230
0.007
1.40
114,802
Granted
1,050,666,667
0.003
Exercised
(60,729,543
)
0.002
Forfeited/Canceled
(148,975,119
)
0.001
Outstanding, December 31, 2022
1,380,755,235
0.003
1.40
-
Exercisable, December 31, 2022
1,380,755,235
0.003
1.40
-
During the year ended December 31, 2022, the Company issued a total of 1,050,666,667 warrants in connection with new convertible promissory notes payable. The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:
• Expected life of 2-5 years
•
Volatility of 204%;
•
Dividend yield of 0%;
•
Risk free interest rate of 4.12% - 4.73%
During the year ended December 31, 2021, the Company issued a total of 99,188,311 warrants in connection with new convertible promissory notes payable. The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:
• Expected life of 2-5 years
•
Volatility of 157% - 219%;
•
Dividend yield of 0%;
•
Risk free interest rate of 0.04% - 0.89%
The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:
Item 5(b) Use of Proceeds. Not applicable.
Item 5(c) Purchases of Equity Securities by the issuer and affiliated purchasers. Not applicable.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA
Not applicable to a smaller reporting company.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-looking Statements
Statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operation, as well as in certain other parts of this Annual report on Form 10-K (as well as information included in oral statements or other written statements made or to be made by the Company) that look forward in time, are forward-looking statements made pursuant to the safe harbor provisions of the Private Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, expectations, predictions, and assumptions and other statements that are other than statements of historical facts. Although the Company believes such forward-looking statements are reasonable, it can give no assurance that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to, and are qualified by, known and unknown risks, uncertainties and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied by those statements. These risks, uncertainties and other factors include, but are not limited to the Company’s ability to estimate the impact of competition and of industry consolidation and risks, uncertainties and other factors set forth in the Company’s filings with the Securities and Exchange Commission, including without limitation to this Annual Report on Form 10-K.
The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-K.
Current GES Corporate Operations
GES has developed and deployed proprietary Registration software, which was designed specifically to authenticate and register voters. This proprietary software functions as a data storage and retrieval registration system by cross-referencing eligibility status within a control voter database. In a mail ballot election, the voter’s ID barcode, QR code, or signature on the Business Reply Envelope, can be scanned and the status of that voter is identified. If the voter is not eligible to vote or another ballot for that individual has already been registered in the system, that ballot is marked VOID and removed from the count. In an in-person election, the voter provides their name for look-up in the system. If they have not voted, a signature box pops up on the screen, the voter signs an electronic signature pad and the digital signature is captured next to their name. If a voter tries to vote more than once, an alert will pop up indicating that the voter has already registered, and the voter will not receive an additional ballot. Because we account for every single ballot, the system has multiple reporting options, which include the list of valid envelopes and list of voters whose ballot was void, detailing the reason. Once the voter is authenticated, the identifiers are removed to ensure a secret vote and the ballot is scanned for tabulation.
GES developed proprietary Scanning and Tabulation election software. This software features advanced OMR/OCR/Barcode scanning and tabulation system featuring de-skewing, de-speckling and image correction. The computer hardware was designed to run hard wired without Internet or Wi-Fi access, ensuring complete security. The system allows for triple-auditing capabilities, which are; electronically generated tabulation results, .jpeg imaging and storage, and the original physical ballot. This advancement gives GES the ability to tabulate elections faster and more efficiently. As experts in paper/mail ballot elections, GES began deploying this system in our elections in the third quarter of 2017 and it has been operating flawlessly.
In 2020 GES developed, built and implemented a propriety online election voting solution that is compliant with Title IV of the United States Department of Labor Office of Labor-Management Standards.
GES built the platform on one of the most secure global infrastructures Amazon Web Services (AWS) which is a comprehensive, evolving platform provided by Amazon that includes a mixture of infrastructure as a service (IaaS) platform as a service and packaged software (PaaS), and software as a service offerings (SaaS).
The platform enables GES to protect individual client data, including the ability to encrypt it, move it, and manage retention (if required). All data flowing across the global network interconnects with the GES secured data center and is automatically encrypted at the physical layer before it leaves our secured facilities. Additional encryption layers exist as well.
GES controls where our client data is stored, who can access it, and what resources your organization is utilizing at any given moment. Fine-grain identity and access controls combined with continuous monitoring for near real-time security information ensures that the right resources have the right access at all times, wherever your information is stored.
GES encryption software uses AES 256 with a cryptographic key using an RSA elliptic curve of 4096, which is used to encrypt the communication of the client and the GES server, as well all client data hosted in the server. A six-digit security code, delivered to the voter’s email address provided by the client, must be validated by the prospective voter in order to authenticate the identity of the voter before the voter may access the ballot. After validating the voter, the voter then votes anonymously, so that the identity of the voter and the ballot cast can never be matched.
The GES voting platform verifies that the users does not use the back and forward browser button, a safe mechanism against tampering. Distributed denial of service DDoS protection tools help secure websites and applications and prevent DDoS attacks, which bombard websites with traffic traditionally delivered via “botnets" that are created by networked endpoints connected via malware. The DDoS software protection provides always-on detection and automatic inline mitigations that minimize application downtime and latencya unique
Every state has Election Software Developers and Manufactures may also qualify by meeting individual requirements for individual States in the United States.
GES has begun undertaking the following six step benchmarks to qualify for the updated U.S. certification and is also considering individual State certifications;
Step 1 - Voting System Testing, Testing current developed systems to U.S. Federal 2.0 Standards
Step 2 - Technical Data Package Review; Reviews submitted documents against documentation requirements of outside agencies, published standards, or U.S. specifications
Step 3 - Physical Configuration Audit; Examines the documentation of the system against the actual submitted system
Step 4 - System Integration Testing; Executes tests on all components of a system configured as if the system was deployed
Step 5 - Functional Configuration Audit; Examines submitted test data and conducts additional testing to verify submitted system hardware and software described in the documents submitted to the Elections Assistance Commission and the Department of Homeland Security
Step 6 - Security Testing; Performs vulnerability assessments and penetration analysis to assess system vulnerabilities
Trends and Uncertainties
The Company currently has minimal revenues and operations and is investigating potential businesses and companies for acquisition to create and/or acquire a sustainable business. Our ability to acquire or create a sustainable business may be adversely affected by our current financial conditions, availability of capital and/ or loans, general economic conditions which can be cyclical in nature along with prolonged recessionary periods, and other economic and political situations.
The Company has generated recurring losses and cash flow deficits from its operations since inception and has had to continually borrow to continue operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The continued operations of the Company are dependent upon its ability to raise additional capital, obtain additional financing and/or generate positive cash flows from operations. Management believes that it will be successful in obtaining additional financing, from which the proceeds will be primarily used to execute its new operating plans. The Company plans to use its available cash and new financing to develop and execute its new business plan and hopefully create and maintain a self-sustaining business. However, the Company can give no assurances that it will be successful in achieving its plans or if financing will be available or, if available, on terms acceptable to the Company, or at all. Should the Company not be successful in obtaining the necessary financing to fund its operations, and ultimately achieve adequate profitability and cash flows from operations, the Company would need to curtail certain or all of its operating activities.
There are no trends, events or uncertainties that have had or are reasonably expected to have a material impact on the net sales or revenues or income from continuing operations. There are no significant elements of income or loss that do not arise from our continuing operations except for the fair value change on derivative financial instruments and settlement on arbitration.
The rapid advances in computing and telecommunications technology over the past several decades have brought with them increasingly sophisticated methods of delivering administrating elections. Along with these advances, though, have come risks regarding the integrity and privacy of data, and these risks apply to election companies, falling into the general classification of cybersecurity. While it is not possible for anyone to give an absolute guarantee that data will not be compromised, when applicable, the Company shall utilize third-party service providers to secure the Company’s financial and personal data; the Company believes that third-party service providers provide reasonable assurance that the financial and personal data that they hold are secure.
Liquidity and Capital Resources
As of December 31, 2022, the Company has an accumulated deficit of $31,306,048 and a working capital deficit of $9,215,598. Our ability to continue as a going concern depends upon whether we can ultimately attain profitable operations, generate sufficient cash flow to meet our obligations, and obtain additional financing as needed.
For the year ended December 31, 2022, the Company recorded net loss of $1,711,197. We recorded an amortization of debt discount of $ 321,970, a change in fair value of derivative liability of $2,251 and had a decrease in accounts payable of $38,917 and a decrease in deferred revenue of $21,500. We also had an increase in accrued expenses of $850,445. As a result, we had net cash used in operating activities of $604,450 for the year ended December 31, 2022.
For the year ended December 31, 2022, we received $710,073 as proceeds from the issuance of convertible promissory notes payable and repaid $60,500 of convertible promissory notes and we received $235,000 for issuance of promissory note payable and repaid $128,704 of the promissory note, resulting in net cash provided by financing activities of $755,869.
As of December 31, 2021, the Company has an accumulated deficit of $29,594,851 and a working capital deficit of $8,172,977. Our ability to continue as a going concern depends upon whether we can ultimately attain profitable operations, generate sufficient cash flow to meet our obligations, and obtain additional financing as needed.
For the year ended December 31, 2021, the Company recorded net loss of $910,162. We recorded an amortization of debt discount of $338,443, a change in fair value of derivative liability of $81,180 and a gain on settlement of debt of $509,080. We had an increase in accounts payable of $98,034 and a decrease in deferred revenue of $286,723. We also had an increase in accrued expenses of $828,071. As a result, we had net cash used in operating activities of $(517,125) for the year ended December 31, 2021.
For the year ended December 31, 2021, we received $502,500 as proceeds from the issuance of convertible promissory notes payable and repaid $29,500 of convertible promissory notes resulting in net cash provided by financing activities of $473,000.
Management believes that it will be able to continue its operations and further advance its acquisition plans. However, management cannot give assurances that such plans will materialize and be successful in the near term or on terms advantageous to the Company, or at all. Should the Company not be successful in its new business plans or obtain additional financing, the Company would need to curtail certain or all of its operating activities.
The Company’s continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. Our auditors for the years ended December 31, 2022 and 2021 have included a “going concern” modification in their auditors’ reports. A “going concern” modification may make it more difficult for us to raise funds when needed. The outcome of this uncertainty cannot presently be determined.
The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. There can be no assurance that management will be successful in implementing its business plan or that the successful implementation of such business plan will actually improve our operating results.
Results of Operations for the year Ended December 31, 2022 compared to the year ended December 31, 2021
Revenues for the year ended December 31, 2022 were $697,060 compared to $1,223,116 for the year ended December 31, 2021 decrease of $526,056. The majority of our clients hold elections on a three-year cycle. This decrease in revenues is due primarily to less elections held during the year of 2022.
Salaries and benefits totaled $809,048 for the year ended December 31, 2022, compared to $591,595 for the year ended December 31, 2021. This increase was due to the employment compensation increase by 10% every year for John Matthews and Kathryn Weisbeck.
Professional fees for the year ended December 31, 2022 totaled $319,162 compared to $412,798 for the year ended December 31, 2021, an decrease of $93,636. This decrease is primarily due to lower professional services during the year ended December 31, 2022.
For the year ended December 31, 2022, we incurred marketing and advertising expenses of $143,392 compared to the $200,554 in the year ended December 31, 2021. We incurred software development expenses of $45,784 in 2022 compared to $70,672 in 2021, we incurred printing costs of $165,125 in 2022 compared to $370,434 in 2021, and we incurred general and administrative expenses of $239,976 in 2022 compared to $249,065 in 2021. The decrease in general and administrative expenses was primarily due to a decrease in costs due to the decrease in revenue.
Total operating expenses for the year ended December 31, 2022 were $1,722,487 compared to $1,895,118 for the year ended December 31, 2021, an decrease of $172,631 principally due to reasons discussed above.
Critical Accounting Policies
The Company’s financial statements and accompanying notes are prepared in accordance with 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 applications of accounting policies. Critical accounting policies for the Company include revenue recognition, valuation of convertible promissory notes and related warrants, stock and stock option compensation, estimates, and derivative financial instruments.
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of GAHI and its wholly owned and majority owned subsidiaries, GES and GAHI Acquisition Corp. All significant intercompany accounts and transactions have been eliminated in consolidation.
Revenue Recognition
The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. The Company earns revenues through various services it provides to its clients. GES’s income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.
The Company’s revenue recognition policies comply with SEC revenue recognition rules and the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606-10-S65-1. The Company earns revenues through various services it provides to its clients. GES’s income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.
Convertible Debt
Convertible debt is accounted for under FASB ASC 470, Debt - Debt with Conversion and Other Options. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital. The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing stock options, except that the contractual life of the warrant is used.
Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense.
The Company accounts for modifications of its embedded conversion features in accordance with the ASC which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The Company uses the Black-Scholes-Merton model to value the derivative instruments. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.
Share-Based Compensation
The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation - Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40)-Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. For convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital, the embedded conversion features no longer are separated from the host contract. ASU 2020-06 also removes certain conditions that should be considered in the derivatives scope exception evaluation under Subtopic 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity, and clarify the scope and certain requirements under Subtopic 815-40. In addition, ASU 2020-06 improves the guidance related to the disclosures and earnings-per-share (EPS) for convertible instruments and contract in entity’s own equity. ASU 2020-06 is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluation the impact this ASU will have on its consolidated financial statements.
Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.
Off-Balance Sheet Arrangements
We do not maintain any off-balance sheet arrangements, transactions, obligations or other relationships with unconsolidated entities that would be expected to have a material current or future effect upon our financial condition or results of operations.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Global Arena Holding, Inc. and Subsidiaries
Index to the Financial Statements
Page
Report of Independent Registered Public Accounting Firm:
Report of Raul Carrega, CPA, PCAOB #1939
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 2022 and 2021
Consolidated Statements of Operations for the Years Ended December 31, 2022 and 2021
Consolidated Statements of Stockholders’ Deficit for the Years Ended December 31, 2022 and 2021
Consolidated Statements of Cash Flows for the Years Ended December 31, 2022 and 2021
Notes to Consolidated Financial Statements
RAUL CARREGA
Certified Public Accountants
215 62nd Street
Newport Beach, California 92663
818-248-6325
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders of
Global Arena Holding Inc. and Subsidiaries
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Global Arena Holding Inc. and Subsidiaries (the “Company”) as of December 31, 2022 and 2021 and the related consolidated statements of operations, stockholders’ deficit, and cash flows for each of the years in the two-year period ended December 31, 2022, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2022 and 2021, and the consolidated results of its 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 uncertainty
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 1 to the consolidated financial statements, the Company has suffered recurring losses since inception, experiences a deficiency of cash flow from operations, sold its principal operating business, is currently in default of certain outstanding notes, and has a stockholders’ deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. Our opinion is not modified with respect to this matter.
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 audit 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 significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Raul Carrega
Raul Carrega, CPA
We have served as the Company’s auditor since 2016.
Newport Beach, California
April 17, 2023
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Audited)
December 31,
December 31,
ASSETS
Current Assets:
Cash and cash equivalents
$ 149,714
$ 13,295
Prepaid Expense
3,000
-
Total current assets
152,714
13,295
Deposits for proposed acquisitions
566,150
551,150
TOTAL ASSETS
$ 718,864
$ 564,445
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable
$ 327,372
$ 366,289
Accrued expenses
4,111,361
3,320,563
Convertible promissory notes payable, net of debt discount of $176,378 and $111,465
4,418,233
4,129,520
Promissory notes payable
392,196
230,000
Deferred revenue
-
21,500
Derivative liability
116,150
118,400
Total current liabilities
9,365,312
8,186,272
STOCKHOLDERS' DEFICIT
Global Arena Holding, Inc.
Preferred stock, $0.001 par value; 2,000,000 shares authorized;
Series B preferred stock; 250,000 shares authorized
49,202 and 49,202 issued and outstanding
Series C preferred stock; 750,000 shares authorized
480,000 and 0 issued and outstanding
-
Common stock, $0.001 par value; 4,000,000,000 and 4,000,000,000 shares authorized;
270,777,969 and 2,044,502,156 shares issued and outstanding
270,778
2,044,502
Additional paid-in capital
22,411,335
19,951,515
Accumulated deficit
(31,306,048 )
(29,594,851 )
Total Global Arena Holding, Inc. stockholders' deficit
(8,623,406 )
(7,598,785 )
Noncontrolling interest
(23,042 )
(23,042 )
Total stockholders’ deficit
(8,646,448 )
(7,621,827 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$ 718,864
$ 564,445
The accompanying notes are an integral part of these consolidated financial statements
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Audited)
Years Ended December 31,
Revenues:
Services
$ 697,060
$ 1,223,116
Operating expenses:
Salaries and benefits
809,048
591,595
Marketing and advertising
143,392
200,554
Software development
45,784
70,672
Professional fees
319,162
412,798
General and administrative
239,976
249,065
Printing
165,125
370,434
Total operating expenses
1,722,487
1,895,118
Loss from operations
(1,025,427 )
(672,002 )
Other expenses:
Interest expense and financing costs
(846,704 )
(828,420 )
Debt Forgiveness
158,683
-
Change in fair value of derivative liability
2,251
81,180
Impairment of investment
-
509,080
Total other expenses
(685,770 )
(238,160 )
Income (loss) before provision for taxes
(1,711,197 )
(910,162 )
Provision for income taxes
-
-
Net loss
(1,711,197 )
(910,162 )
Net loss attributed to noncontrolling interest
-
-
Net loss attributed to Global Arena Holding, Inc.
$ (1,711,197 )
$ ( 910,162 )
Weighted average shares outstanding - basic and diluted
1,785,060,155
1,858,421,059
Earnings (loss) per share - basic and diluted
$ (0.00 )
$ (0.00 )
The accompanying notes are an integral part of these consolidated financial statements.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Audited)
Series B Preferred Stock
Series C
Preferred Stock
Common Stock
Additional Paid-in
Accumulated
Total Global Stockholders'
Non- controlling
Total Stockholders’
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Deficit
Deficit
Interest
Deficit
Balance, December 31, 2020
49,202
$
-
-
1,712,958,504
$
1,712,959
19,128,836
(28,684,689
)
(7,842,845
)
(23,042
)
(7,865,887
)
Issuance of common stock for convertible debt and accrued interest
-
-
-
-
240,365,865
240,365
131,962
-
372,327
-
372.327
Issuance of common stock for debt settlement
-
-
-
-
75,000,000
75,000
412,500
-
487,500
-
487,500
Issuance of common stock for services
-
-
-
-
1,072,893
1,073
4,399
-
5,472
-
5,472
Allocated value of warrants and beneficial conversion feature related to issuance of convertible debt
-
-
-
-
-
-
288,923
-
288,923
-
288,923
Cashless exercise of warrants
15,104,894
15,105
(15,105
)
-
Net loss
-
-
-
-
-
-
-
(910,162
)
(910,162
)
-
(910,162
)
Balance, December 31, 2021
49,202
$
-
-
2,044,502,156
$
2,044,502
$
19,951,515
$
(29,594,851
)
$
(7,598,785
)
$
(23,042
)
$
(7,621,827
)
Issuance of common stock for convertible debt and accrued interest
-
-
-
-
556,317,702
556,318
(136,205
)
-
420,113
-
420,113
Shares issues in exchanges for Series C Preferred Shares
-
-
480,000
-
-
-
-
-
Allocated value of warrants and beneficial conversion feature related to issuance of convertible debt Cashless exercise of warrants
-
-
-
-
52,244,626
52,245
(52,245
)
-
-
-
-
Allocated value of warrants and beneficial conversion feature related to issuance of convertible debt
-
-
-
-
-
-
265,983
-
265,983
-
265,983
Cancelation of Shares in relation to Reverse share split
-
-
-
-
(2,598,858,127
)
(2,598,858
)
2,598,858
-
-
-
-
Share issuance in relation to reverse share split
-
-
-
-
216,571,612
216,571
(216,571
)
-
-
-
-
Net loss
-
-
-
-
-
-
-
(1,711,197
)
(1,711,197
)
-
(1,711,197
)
Balance, December 31, 2022
49,202
$
480,000
$
270,777,969
$
270,778
$
22,411,335
(31,306,048
)
(8,623,406
)
$
(23,042
)
$
(8,646,448
)
The accompanying notes are an integral part of these consolidated financial statements.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
Years Ended December 31,
OPERATING ACTIVITIES:
Net loss
$
(1,711,197
)
$
(910,162
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of debt discount
321,970
338,443
Change in fair value of derivative liability
(2,251
)
(81,180
)
Common stock issued for services
-
5,472
Gain on settlement of debt
-
(509,080
)
Change in assets and liabilities:
Deferred revenue
(21,500
)
(286,723
)
Prepaid Expense
(3,000
)
-
Accounts payable
(38,917
)
98,034
Accrued expenses
850,445
828,071
Net cash used in operating activities
$
(604,450
)
$
(517,125
)
INVESTING ACTIVITIES:
Payment of deposit for acquisition
(15,000
)
-
Net cash used in investing activities
$
(15,000
)
$
-
FINANCING ACTIVITIES:
Proceeds from convertible promissory notes payable
710,073
502,500
Proceeds from promissory notes payable
235,000
-
Repayment of convertible promissory notes payable
(128,704
)
(29,500
)
Repayment of promissory notes payable
(60,500
)
-
Net cash provided by financing activities
$
755,869
$
473,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
136,419
(44,125
)
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE
13,295
57,422
CASH AND CASH EQUIVALENTS, ENDING BALANCE
$
149,714
$
13,295
CASH PAID FOR:
Interest
$
-
$
-
Income taxes
$
-
$
-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Allocated value of warrants and beneficial conversion features related to debt
$
265,984
$
288,923
Debt converted to common stock
$
420,112
$
372,328
Series C Preferred Stock Issuance
$
$
-
Original Issuance Discount
$
115,350
$
-
Cancelation of Shares in relation to Reverse share split
$
2,598,858
$
-
Share issuance in relation to reverse share split
$
216,572
$
-
The accompanying notes are an integral part of these consolidated financial statements.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 1 - ORGANIZATION
Organization and Business
Global Arena Holding, Inc. (formerly, “Global Arena Holding Subsidiary Corp.”) (“GAHI”), was formed in February 2009, in the state of Delaware. GAHI and its subsidiaries (the “Company”) was previously a financial services firm and currently is focusing on the following businesses through these subsidiaries:
On February 25, 2015, Global Election Services, Inc. (GES) formed on February 25, 2015, provides comprehensive technology-enabled paper absentee/mail ballot and internet election services to organizations such as craft and trade organizations, labor unions, political parties, co-operatives and housing organizations, associations and professional societies, universities, and political organizations. GES has developed proprietary election software for a data storage and retrieval registration system to determine voter eligibility and prevent duplicate votes with In-Person digital signature capture, as well as proprietary election software for scanning/tabulation utilizing advanced OMR/OCR/Barcode imaging software featuring de-skewing, de-speckling, and image correction. This system provides three types of audit capabilities. The hardware includes high speed optical scanners that are hard lined to a computer with all Wi-Fi disabled so the entire tabulation process occurs offline, eliminating the opportunity for hacking. GES is also working with multiple vendors and has made investments in company’s who are developing Blockchain Technology for a data storage and retrieval registration system; tabulation of paper Absentee/Mail Ballots; and internet voting.
On March 25, 2021, the Company entered into a second amended purchase agreement (APA) with Election Services Solutions. Under the second APA the Company entered into an amended asset purchase agreement with Election Services Solutions, LLC. Under the amended APA, the Company will purchase 100% of the assets of Election Services Solutions, LLC and the Company will pay $650,000, of which $511,150 has already been paid, and issue 40,000,000 common shares to purchase these assets under this second amended APA. This APA replaces the first amended purchase agreement signed on May 10, 2019 wherein the Company was to purchase 100% of the assets of Election Services Solutions, LLC. The Company was to pay $550,000, of which $511,150 has already been paid, and issue 20,000,000 common shares to purchase these assets under this first amended APA. GES derives over 80 % of its current business from Election Services Solutions. Management anticipates the closing of this transaction will occur in the fourth quarter of 2022.
On May 20, 2015, the Company incorporated a new wholly owned entity in the State of Delaware called “GAHI Acquisition Corp.” This entity was incorporated at the time to be the merger subsidiary for the acquisition of Blockchain Technologies Corp. (BTC) and other software system development.
On May 20, 2015, the Company entered into an agreement and plan of merger with BTC. Under this agreement, BTC would have merged with GAHI Acquisition, and GAHI Acquisition, would have been the surviving corporation. As consideration for the merger, the Company was to reserve a number of shares equal to 1/3 the total issued and outstanding of the Company to be issued to BTC shareholders at closing. On October 20, 2015, the parties agreed to extend the closing date of the merger to December 15, 2015. This agreement expired on December 15, 2015.
Concurrently, on October 20, 2015, the Company paid $125,000 in cash to BTC and issued to Nikolaos Spanos 1,377,398 of its common shares and 1,993,911 warrants to purchase its common shares at the exercise price of $.10 per common share with an exercise period of three years. The warrants have expired. The common shares and warrants were issued for the purchase of 1,000,000 common shares of BTC. Said common shares of BTC represented ten percent (10%) of the outstanding equity in BTC on October 20, 2015. The securities issued by the Company were issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933. There has been no further activity in GAHI Acquisition Corp.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 1 - ORGANIZATION (continued)
On March 28, 2017, the United States Patent Office issued patents to BTC covering Election Intellectual Property, US Patent #9,608,829, Issued March 28, 2017. As an equity shareholder in BTC only, GAHC and GES have not used the BTC US Patent. Any use of the patent would require a new negotiation, and new contract with BTC.
The Company has determined that the initial investment of Blockchain Technologies Corp. will be written off. The Company’s Board of Directors cancelled all transactions previously proposed but never acted on concerning GAHI Acquisition. GAHI Acquisition will remain a subsidiary for the exclusive use of any future transactions involving Blockchain Technologies Corporation.
The Company, GAHI, and GES do not trade crypto currency, nor participate in Initial Coin Offerings.
On June 15, 2019, GES entered into a Term Sheet to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES was to invest $50,000 into True Vote thru a 24 Month Debenture and issue a three year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The Company will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc. On December 16, 2019 this Term Sheet was amended to provide for a December 17, 2019, payment by the Company for $ 40,000 to True Vote. As of the date of this filing the Company has paid an additional $10,000 and will issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, and the Company will receive 3,000,000 common shares of TrueVote Inc representing Thirty percent (30%) as part of the joint venture between the companies. Due to the new guidelines issued by the Election Assistance Commission and its Voluntary Voting Guidelines 2.0.The Company is currently renegotiating this transaction and expects to complete the renegotiation by the 3rd quarter 2022.
On November 19, 2019, the Company incorporated a new wholly owned entity in the State of Delaware called Tidewater Energy Group Inc. The Board of Directors appointed John S. Matthews and Jason Old as Board members. The Company was formed to explore opportunities in the oil, gas, mineral, and energy business. Tidewater Energy Group Inc. has 40,000,000 common shares authorized; par value $0.001. There are currently 10,000,000 common shares issued and outstanding of which the Company holds 5,100,000 common shares (51%). The Company invested $50,000 into Tidewater Energy Group Inc. for general capital and administrative expenses in January 2020.
Going Concern
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplates the continuation of the Company as a going concern. The Company has generated recurring losses from operations and cash flow deficits from its operations since inception and has had to continually borrow to continue operating. In addition, certain of the Company’s debt is in default as of December 31, 2022. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The continued operations of the Company are dependent upon its ability to raise additional capital, obtain additional financing and/or acquire or develop a business that generates sufficient positive cash flows from operations. The Company continues to raise funds from the issuance of additional convertible promissory note. Management is hopeful that with their ability to raise additional funds that the Company should be able to continue as a going concern.
The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue as a going concern.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of GAHI and its wholly-owned and majority owned subsidiaries, GES, GAHI Acquisition Corp and Tidewater Energy Group, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation.
Noncontrolling Interest
The Company follows ASC Topic 810, Consolidation, which governs the accounting for and reporting of non-controlling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses, and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance.
The net income (loss) attributed to the NCI is separately designated in the accompanying condensed consolidated statements of operations and comprehensive loss.
Basic and Diluted Earnings (Loss) Per Share
Earnings per share is calculated in accordance with the ASC 260-10, Earnings Per Share. Basic earnings-per-share is based upon the weighted average number of common shares outstanding. Diluted earnings-per-share is based on the assumption that all dilutive convertible notes, stock options and warrants were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.
December 31,
Options
15,000,000
15,000,000
Warrants
1,380,755,235
539,793,230
Convertible notes
1,755,779,661
1,313,270,321
Total
3,151,534,896
1,868,063,551
Management Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates reflected in the consolidated financial statements include, but are not limited to, share-based compensation, and assumptions used in valuing derivative liabilities. Actual results could differ from those estimates.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Cash and Cash Equivalents
The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Convertible Debt
Convertible debt is accounted for under FASB ASC 470, Debt - Debt with Conversion and Other Options. The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued and records the relative fair value of any warrants issued with those instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to the warrants and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features, both of which are credited to additional paid-in capital. The Company calculates the fair value of warrants issued with the convertible instruments using the Black-Scholes valuation method, using the same assumptions used for valuing stock options, except that the contractual life of the warrant is used.
Under these guidelines, the Company allocates the value of the proceeds received from a convertible debt transaction between the conversion feature and any other detachable instruments (such as warrants) on a relative fair value basis. The allocated fair value of the BCF and warrants are recorded as a debt discount and is accreted over the expected term of the convertible debt as interest expense.
The Company accounts for modifications of its embedded conversion features in accordance with the ASC which requires the modification of a convertible debt instrument that changes the fair value of an embedded conversion feature and the subsequent recognition of interest expense or the associated debt instrument when the modification does not result in a debt extinguishment.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives pursuant to ASC 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The Company uses the Black-Scholes-Merton model to value the derivative instruments. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.
Revenue Recognition
The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. The Company earns revenues through various services it provides to its clients. GES’s income is recognized at the presentation date of the certification of the election results. The payments received in advance are recorded as deferred revenue on the balance sheet. Should an election not proceed, all non-refundable deferred revenue will be recognized as revenue.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Share-Based Compensation
The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation - Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.
Fair Value of Financial Instruments
FASB ASC 820, Fair Value Measurement defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.
Fair Value Measurements
The Company applies the provisions of ASC 820-10, Fair Value Measurements and Disclosures. ASC 820-10 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:
•
Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
•
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
•
Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Cash, accounts payable and accrued expenses and deferred revenue - The carrying amounts reported in the consolidated balance sheets for these items are a reasonable estimate of fair value due to their short-term nature.
Promissory notes payable and convertible promissory notes payable - Promissory notes payable and convertible promissory notes payable are recorded at amortized cost. The carrying amount approximates their fair value.
The Company uses Level 2 inputs for its valuation methodology for the beneficial conversion feature and warrant derivative liabilities as their fair values were determined by using the Black-Scholes-Merton pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The following table presents the Company’s assets and liabilities required to be reflected within the fair value hierarchy as of December 31, 2022 and 2021.
Fair Value
As of
Fair Value Measurements at
Description
December 31,
December 31, 2022
Using Fair Value Hierarchy
Level 1
Level 2
Level 3
Beneficial conversion feature
$
116,150
$
-
$
116,150
$
-
Total
$
116,150
$
-
$
116,150
$
-
Fair Value
As of
Fair Value Measurements at
Description
December 31,
December 31, 2021
Using Fair Value Hierarchy
Level 1
Level 2
Level 3
Beneficial conversion feature
$
118,400
$
-
$
118,400
$
-
Total
$
118,400
$
-
$
118,400
$
-
Income Taxes
The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Recently Issued Accounting Pronouncements
In June 2018, the FASB issued Accounting Standards Update (“ASU”) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.
In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements as the Company did not have any lease arrangements that were subject to this new pronouncement.
In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40)-Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. For convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital, the embedded conversion features no longer are separated from the host contract. ASU 2020-06 also removes certain conditions that should be considered in the derivatives scope exception evaluation under Subtopic 815-40, Derivatives and Hedging-Contracts in Entity’s Own Equity, and clarify the scope and certain requirements under Subtopic 815-40. In addition, ASU 2020-06 improves the guidance related to the disclosures and earnings-per-share (EPS) for convertible instruments and contract in entity’s own equity. ASU 2020-06 is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluation the impact this ASU will have on its consolidated financial statements.
Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.
NOTE 3 - ACQUISITION DEPOSITS
On March 25, 2021, the Company entered into a second amended purchase agreement (APA) with Election Services Solutions. Under the second APA the Company entered into an amended asset purchase agreement with Election Services Solutions, LLC. Under the amended APA, the Company will purchase 100% of the assets of Election Services Solutions, LLC and the Company will pay $650,000, of which $511,150 has already been paid, and issue 40,000,000 common shares to purchase these assets under this second amended APA. This APA replaces the first amended purchase agreement signed on May 10, 2019 wherein the Company was to purchase 100% of the assets of Election Services Solutions, LLC. The Company was to pay $550,000, of which $511,150 has already been paid, and issue 20,000,000 common shares to purchase these assets under this first amended APA. GES derives over 80 % of its current business from Election Services Solutions. Management anticipates the closing of this transaction will occur in the second quarter of 2023.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 3 - ACQUISITION DEPOSITS (continued)
On June 15, 2019, GES entered into a Term Sheet, and Common Stock Purchase Agreement to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES was to invest $50,000 into a 24 Month Debenture and issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The Company will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc. The Company on December 17, 2019 paid $40,000 to True Vote. Under the terms of the agreement GES is to invest an additional $10,000 and the Company issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. On June 1st, 2021, TrueVote issued its White Paper “A transparent Electronic Voting System validated by the Bitcoin Blockchain” TrueVote, Inc. is building a comprehensive end-to-end, de-centralized, completely digital voting system. This will be based on traditional, proven database methodologies, and layered with a "checksum" that's posted on the Blockchain, proving all data is immutable and unalterable. This design will ensure that every vote is transparently counted and verifiable. The transaction closed on February 27, 2023.
On November 19, 2019, the Company incorporated a new wholly owned entity in the State of Delaware called Tidewater Energy Group Inc. The Board of Directors appointed John S. Matthews and Jason Old as Board members. The Company was formed to explore opportunities in the oil, gas, mineral, and energy business. Tidewater Energy Group Inc. has 40,000,000 common shares authorized: par value $0.001. There are currently 10,000,000 common shares issued and outstanding of which the Company holds 5,100,000 common shares (51%). The Company invested $50,000 into Tidewater Energy Group Inc. for general capital and administrative expenses in January 2020. The Company plans to close in the second quarter of 2023.
NOTE 4 - ACCRUED EXPENSES
Accrued expenses at December 31, 2022 and 2021 consisted of the following:
December 31,
December 31,
Accrued interest
$
2,767,267
$
2,305,743
Accrued compensation
1,307,656
978,381
Other accrued expenses
36,438
36,439
$
4,111,361
$
3,320,563
NOTE 5 - PROMISSORY NOTES PAYABLE
In March 2014, the Company issued two promissory notes for a total of $230,000. The interest rate is the short-term applicable federal rate as determined by the Internal Revenue Service for the calendar month plus 10%. These two promissory notes are due on December 31, 2022, as amended. The outstanding balance was $230,000 and $230,000 as of December 31, 2022 and 2021, respectively.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 5 - PROMISSORY NOTES PAYABLE (continued)
In April 14, 2022, the Company entered into an revenue share agreement with EBF Holdings, LLC for a total of $41,100, on the purchase amount of $30,000 and OID of $11,100. There is no interest rate, but the Company will disburse a daily payment of $304 to EBF Holdings, LLC. The outstanding balance was $3,045 and $0 as of December 31, 2022 and December 31, 2021, respectively.
In October 6, 2022, the Company entered into an revenue share agreement with EBF Holdings, LLC for a total of $47,950, on the purchase amount of $35,000 and OID of $12,950. There is no interest rate, but the Company will disburse a daily payment of $343 to EBF Holdings, LLC. The outstanding balance was $27,058 and $0 as of December 31, 2022 and December 31, 2021, respectively.
In August 22, 2022, the Company entered into an Purchase and Sale of Future Receipts Agreement with Family Business Fund LLC for a total of $74,500, on the purchase amount of $50,000 and OID of $24,500. There is no interest rate, but the Company will disburse a weekly payment of $3,104 to Family Business Fund LLC. The outstanding balance was $21,729 and $0 as of December 31, 2022 and December 31, 2021, respectively
In October 5, 2022, the Company entered into an revenue share agreement with Capytal.com for a total of $22,350, on the purchase amount of $15,000 and OID of $7,350. There is no interest rate, but the Company will disburse a daily payment of $298 to Capytal.com. The outstanding balance was $5,364 and $0 as of December 31, 2022 and December 31, 2021, respectively.
In November 29, 2022, the Company entered into promissory note agreement with Duck Duck Spruce for a total of $100,000. The outstanding balance was $100,000 and $0 as of December 31, 2022 and December 31, 2021, respectively.
In December 31, 2022, the Company entered into promissory note agreement with a shareholder for a total of $5,000. The outstanding balance was $5,000 and $0 as of December 31, 2022 and December 31, 2021, respectively.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 6 - CONVERTIBLE PROMISSORY NOTES PAYABLE
Convertible promissory notes payable at December 31, 2022 and 2021 consist of the following:
December 31,
December 31,
Convertible promissory notes with interest rates ranging from 10% to 12% per annum, convertible into common shares at a fixed price ranging from $0.001 to $0.03 per share. Maturity dates through December 31, 2022, as amended. ($2,666,018 in default)
$
3,099,054
$
2,952,250
Convertible promissory notes with interest rates ranging from 10% to 12% per annum, convertible into common shares at prices equal to 60% discount from the lowest trade price in the 20-25 trading days prior to conversion (as of December 31, 2022 the conversion price would be $0.001 per share). Maturity dates through December 31, 2022, as amended.
321,534
200,784
Convertible promissory notes with interest at 12% per annum, convertible into common shares of GES. The maturity dates through December 31, 2022, as amended. ($1,059,000 in default)
1,174,023
1,093,500
Total convertible promissory notes payable
4,594,611
4,246,534
Unamortized debt discount
(176,378 )
(117,014 )
Convertible promissory notes payable, net discount
4,418,233
4,129,520
Less current portion
(4,418,233 )
(4,129,520 )
Long-term portion
$ -
$ -
A rollforward of the convertible promissory notes payable from December 31, 2020, to December 31, 2022 is below:
Convertible promissory notes payable, December 31, 2020
$
4,498,986
Issued for cash
526,500
Issued for original issue discount
101,740
Repayment for cash
(29,500
)
Conversion to common stock
(268,400 )
Issuance of common stock for debt settlement
(622,767
)
Debt discount related to new convertible promissory notes
(415,482
)
Amortization of debt discounts
338,443
Convertible promissory notes payable, December 31, 2021
$
4,129,520
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 6 - CONVERTIBLE PROMISSORY NOTES PAYABLE (continued)
Issued for cash
757,274
Issued for original issue discount
(83,950
)
Repayment of cash
(60,500
)
Conversion to common stock
(348,696
)
Issuance of common stock for debt settlement
-
Debt discount related to new convertible promissory notes
(297,384
)
Amortization of debt discounts
321,969
Convertible promissory notes payable, December 31, 2022
$
4,418,233
NOTE 7 - DERIVATIVE FINANCIAL INSTRUMENTS
Certain of the Company’s convertible promissory notes payable are convertible into shares of the Company’s common stock at a percentage of the market price on the date of conversion. The Company has determined that the variable conversion rate is an embedded derivative instrument. The Company uses the Black-Scholes valuation method to value the derivative instruments at inception and on subsequent valuation dates. Weighted average assumptions used to estimate fair values are as follows:
December 31,
December 31,
Risk-free interest rate
4.12-4.73
%
0.04 %
Expected life of the options (Years)
0.01-1.30
0.01
Expected volatility
%
%
Expected dividend yield
%
%
Fair Value
$ 116,150
$ 118,400
A rollforward of the derivative liability from December 31, 2020 to December 31, 2022 is below:
Derivative liabilities, December 31, 2020
$
399,204
Relieved with debt settlement agreement
(199,624
)
Change in fair value of derivative liabilities
(81,180
)
Derivative liabilities, December 31, 2021
118,400
Change in fair value of derivative liabilities
(2,251
)
Derivative liabilities, December 31, 2022
$
116,150
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 8 - STOCKHOLDERS’ DEFICIT
Series B Preferred Stock
Pursuant to the Company’s Certificate of Incorporation, the Company has authorized 2,000,000 shares of $0.001 par value Preferred Stock. The Company has designated 250,000 of the 2,000,000 shares as Series B Preferred Stock. The Series B Preferred stockholders are entitled to a cumulative stock dividend, up to a maximum of 10% additional common stock upon the conversion after one year. The Series B Preferred Stock may be converted into common shares, at any time, at the option of the holder. The conversion price shall be the greater of $0.01 or 90% of the lowest closing price during the five most recent trading days prior to conversion. The number of common shares to be issued shall be the number of Series B Preferred shares times $10 per shares divided by the conversion price.
During the year ended December 31, 2017, the Company sold 90,000 shares of Series B Preferred Stock for cash proceeds of $900,000. During the year ended December 31, 2018, 30,000 of these preferred shares were converted into 30,743,885 shares of common stock. During the year ended December 31, 2020, 10,798 of these preferred shares were converted into 36,519,609 shares of common stock.
Series C Preferred Stock
Pursuant to Board of Director minutes dated July 27, 2022, the Company filed a Certificate of Designation with the State of Delaware authorizing the creation of 750,000 Series C Preferred Stock with the following terms and rights:
A. Designation and Number. A series of the preferred stock, designation the “Series C Preferred Stock,” $0.001 par value, is hereby established. The number of shares of the Series C Preferred Stock shall be Seven Hundred Fifty Thousand (750,000). The rights, preferences, privileges, and restrictions granted to and imposed on the Series C Preferred Stock are as set forth below.
B. Dividend Provisions. None
C. Conversion Rights. None
D. Preemptive Rights. None
E. Voting Rights. Each share of Series C Preferred Stock shall entitle the holder thereof to cast 5,000 votes on all matters submitted to a vote of the stockholders of the Corporation.
On July 27, 2022, the Company authorized the issuance of 480,000 shares Series C Preferred Stock at $.001 per share as follows:
120,000 Series C Preferred Shares - John Matthews, CEO/CFO
120,000 Series C Preferred Shares - Martin Doane, Director
120,000 Series C Preferred Shares - Facundo Bacardi, Director
120,000 Series C Preferred Share - Kathryn Weisbeck, Director of Public Relations/Marketing
The Series C Preferred Shares were issued on July 29, 2022
Common Stock
On April 28, 2016, the stockholders approved an amendment to the Company’s articles of incorporation to increase the number of authorized common shares from 100,000,000 to 1,000,000,000. In addition, the stockholders also approved an amendment to the Company’s Stock Awards Plan, originally filed June 27, 2011, which will increase the number of shares authorized to be issued under the Plan from 3,000,000 shares to 7,460,000 shares.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 8 - STOCKHOLDERS’ DEFICIT (continued)
On October 11, 2019, the Company’s shareholders approved an increase of the Company’s authorized shares by Two Billion Common Shares
On September 7, 2021, the stockholders of the Company re-elect the three (3) directors to serve as members of the Board of Directors of the Company to serve for the ensuing three years and or until their successors are duly elected and qualified. The directors named to our Board are John Matthews, Martin Doane, and Facundo Bacardi;
On September 7, 2021, the stockholders of the Company voted to authorize an increase in the Company’s authorized capital stock to 4,000,000,000 (four billion);
On September 7, 2021, the stockholders of the Company voted to authorize the Company to effectuate a 1 for 12 reverse split of the outstanding common shares;
On September 7, 2021, the stockholders of the Company voted to ratify the appointment of Raul Carrega, CPA as the Company’s independent registered public accounting firm for the year ending December 31, 2021;
On October 5, 2022, the company announced that the Financial Industry Regulatory Association (FINRA) confirmed the below listed corporate actions requested by the Company:
•
1 for 12 Reverse Split
•
New Cusip: 37951M300
•
Current CUSIP: 37951M102
•
Daily List Announcement Date: 10/4/2022
•
Market Effective Date: 10/5/2022
Following the reverse split there are approximately 216,571,612 shares of the Company’s common stock issued and outstanding which represented approximately 2,598,858,127 before the reverse stock split.
During the year ended December 31, 2022, the Company issued:
•
556,317,702 shares of common stock for conversion of $360,947 of convertible notes and $59,166 of accrued interest.
•
52,244,626 shares of common stock issued for cashless exercise of 60,729,543 warrants.
•
2,598,858,127 shares of common stock were canceled and converted to 216,571,612 shares
During the year ended December 31, 2021, the Company issued:
•
240,365,865 shares of common stock for the conversion of $270,149 of convertible notes and $102,179 of accrued interest;
•
1,072,893 shares of common stock for services rendered valued at fair value of $5,472. The shares were valued at 0.0051;
• 75,000,000 shares of common stock in connection with a note settlement agreement valued at fair value of $487,500; and
•
15,104,894 shares of common stock issued for cashless exercise of 24,545,454 warrants.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 8 - STOCKHOLDERS’ DEFICIT (continued)
Option Activity
A summary of the option activity is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Price ($)
Life (in years)
Value ($)
Outstanding, December 31, 2020
48,000,000
0.03
1.79
-
Granted
-
Exercised
-
Forfeited/Canceled
(33,000,000 )
Outstanding, December 31, 2021
15,000,000
0.02
1.19
-
Granted
-
Exercised
-
Forfeited/Canceled
-
Outstanding, December 31, 2022
15,000,000
0.02
0.19
-
Exercisable, December 31, 2022
15,000,000
0.02
0.19
-
The exercise price for options outstanding at December 31, 2022:
Outstanding and Exercisable
Number of
Exercise
Options
Price
15,000,000
$ 0.02
15,000,000
Warrant Activity
A summary of warrant activity is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Warrants
Price ($)
Life (in years)
Value ($)
Outstanding, December 31, 2020
534,758,706
0.009
1.80
32,015
Granted
99,188,311
0.005
Exercised
(24,545,454 )
0.005
Forfeited/Canceled
(69,608,333
)
0.010
Outstanding, December 31, 2021
539,793,230
0.007
1.40
114,802
Granted
1,050,666,667
0.003
Exercised
(60,729,543 )
0.002
Forfeited/Canceled
(148,975,119
)
0.001
Outstanding, December 31, 2022
1,380,755,235
0.003
1.40
-
Exercisable, December 31, 2022
1,380,755,235
0.003
1.40
-
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 8 - STOCKHOLDERS’ DEFICIT (continued)
The exercise price for warrants outstanding at December 31, 2022:
Outstanding and Exercisable
Number of
Exercise
Warrants
Price
7,500,000
$ 0.00250
994,000,000
0.00100
29,270,457
0.00170
15,000,000
0.00176
11,111,111
0.00180
76,923,000
0.00190
109,423,000
0.00200
37,500,000
0.00300
25,000,000
0.00400
30,000,000
0.00500
7,142,857
0.00700
37,884,810
0.05000
1,380,755,235
During the year ended December 31, 2022, the Company issued a total of 1,050,666,667 warrants in connection with a new convertible promissory note payable. The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:
• Expected life of 2-5 years
• Volatility of 204%;
• Dividend yield of 0%;
• Risk free interest rate of 4.12% - 4.73%
During the year ended December 31, 2021, the Company issued a total of 99,188,311 warrants in connection with a new convertible promissory note payable. The fair values of the warrants were determined using the Black-Scholes option pricing model with the following assumptions:
• Expected life of 2-5 years
• Volatility of 157% - 219%;
• Dividend yield of 0%;
• Risk free interest rate of 0.04% - 0.89%
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 9 - INCOME TAXES
As of December 31, 2022, the Company had approximately $23,595,761 of federal net operating loss carryforwards available to offset future taxable income. These net operating losses which, if not utilized, begin expiring in 2029. In accordance with Section 382 of the Internal Revenue Code, deductibility of the Company’s net operating loss carryforwards may be subject to an annual limitation in the event of a change of control.
Deferred income taxes reflect the net tax effects of net operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.
FASB ASC 740 requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including a company’s performance, the market environment in which the company operates, the length of carryback and carryforward periods, and expectations of future profits, etc. The Company believes that significant uncertainty exists with respect to the future realization of the deferred tax assets and has therefore established a full valuation allowance as of December 31, 2022 and 2021. The change in the deferred tax valuation allowance increased by approximately $375,699 and $145,000 during the years ended December 31, 2022 and 2021, respectively. The increase in 2022 and 2021 was a result of additional net operating losses.
The components of deferred tax assets at December 31, 2022 and 2021 are as follows:
Deferred income tax asset
Net operating loss carryforwards
$
6,590,408
$
6,215,000
Less: valuation allowance
(6,590,408
)
(6,215,000
)
Net deferred tax asset
$
-
$
-
The Company evaluated the provisions of FASB ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryforward or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of FASB ASC 740. Interest costs related to unrecognized tax benefits are required to be calculated (if applicable) and would be classified as “interest expense, net” in the statement of operations. Penalties would be recognized as a component of “general and administrative expenses.” No interest or penalties were recorded during the years ended December 31, 2022 and 2021. As of December 31, 2022 and 2021, no liability for unrecognized tax benefits was required to be reported.
The Company files income tax returns in the United States and in New York State and City. The Company is no longer subject to Federal, state and local income tax examinations by the tax authorities for tax years prior to 2017.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 9 - INCOME TAXES (continued)
The reconciliation between the statutory federal income tax rate and the Company’s effective rate for the years ended December 31, 2022 and 2021 is as follows:
Federal statutory rates
21.0
%
21.0
%
State income taxes, net of federal benefit
6.0
%
6.0
%
Non-deductible expenses
(5
%)
(10
%)
Valuation allowance against net deferred tax assets
(22
%)
(17
%)
Effective rate
0.0
%
0.0
%
NOTE 10 - COMMITMENTS AND CONTINGENCIES
The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance.
On December 26, 2017, the Company entered into a settlement agreement with a prior attorney with regards to outstanding legal fees owed. Pursuant to this settlement agreement, the Company paid $25,000 on January 5, 2018, and $25,000 on February 5, 2018, and was required to pay an additional $200,000 during 2018. On December 14, 2020, parties amended the settlement agreement to state that the Company shall pay the prior attorney Two Hundred Nineteen Thousand, Five Hundred and Seventy-Six Dollars and thirty nine cents ($219,576.39). The amount due shall be paid to the prior attorney in payments of Five Thousand Dollars per month for a period of thirty-four (34) months. On January 27, 2021, the Company made a payment of $5,000, on April 12, 2021, the Company made a payment of $15,000, on August 6, 2021, the Company made a payment of $5,000. On October 1, 2021, the Company made a payment of $ 5,000 and on November 12, 2021, the Company made a payment of $10,000.
On October 16, 2020, the Company’s subsidiary, Tidewater Energy Group Corp. was named as a defendant in a lawsuit filed in District Court in and For Tulsa County, State of Oklahoma, CJ-2020-3172. On January 13, 2021, the plaintiffs added the Company to the lawsuit. The plaintiffs are seeking damages, disgorgement and specific performance relief relating to a Purchase and Sale Agreement to purchase all of the membership interests in Foster Energy. The Company has obtained counsel to dispute the charges. On March 18, 2021, the Company filed a motion to dismiss and brief in support. The Company asserted that the plaintiffs’ claims are entirely without merit as the Company was not a party to the Purchase and Sale Agreement or the related non-disclosure agreement. Tidewater concurrently filed a motion to dismiss based on legal remedies available to Tidewater. On December 7, 2022 the case was dismissed with each party bearing their own attorney fees and costs.
On March 31, 2022, the Company was named as a defendant in a lawsuit filed in the Supreme Court of the State of New York, Index No. 651531/2002. The plaintiff has alleged breach of contract and unjust enrichment. The plaintiff is seeking damages relating to a plaintiff’s prior employment agreement with the Company. The Company has obtained counsel to dispute the charges.
NOTE 11 - AGREEMENTS
On March 25, 2021, the Company entered into a second amended purchase agreement (APA) with Election Services Solutions. Under the second APA the Company entered into an amended asset purchase agreement with Election Services Solutions, LLC. Under the amended APA, the Company will purchase 100% of the assets of Election Services Solutions, LLC and the Company will pay $650,000, of which $511,150 has already been paid, and issue 40,000,000 common shares to purchase these assets under this second amended APA. This APA replaces the first amended purchase agreement signed on May 10, 2019, wherein the Company was to purchase 100% of the assets of Election Services Solutions, LLC. The Company was to pay $550,000, of which $511,150 has already been paid, and issue 20,000,000 common shares to purchase these assets under this first amended APA. GES derives over 80% of its current business from Election Services Solutions. Management anticipates the closing of this transaction will occur in the second quarter of 2023.
On May 13, 2019, the Company entered into a joint venture agreement with Voting Portals, LLC (VP), a Florida limited liability company. Pursuant to this agreement, the joint venture will be making use of the VP online e-voting web portal solutions and proprietary e-voting software programs to service and fulfill GES’s clients’ online elections and other e-voting events pursuant to the terms of the agreement, as well as any other ventures and relationships agreed to pursuant to the goals of the agreement. The Agreement was amended and as part of this agreement, the Company will be issuing 10,000,000 common shares to VP for services rendered, and VP will own 100% of the rights to the software, while GES will be responsible for all administrative and other election procedures. This transaction will close in the 2nd quarter of 2023.
On January 14, 2022, GES entered into an Independent Consulting Agreement (ICA) with Magdiel Rodriquez. Under the terms of the ICA Magdiel Rodriquez will receive 15,000,000 million common shares in return for his software expertise in the development of GES election software. This new ICA replaces an amended MSA signed May 13, 2019 with HCAS and Magdiel Rodriquez wherein the Company was to issue a total of 30,000,000 warrants to purchase the Company’s common shares at a price of $0.005 as consideration for the services of HCAS and Mr. Magdiel Rodriquez. Mr. Rodriguez has over 25 years’ experience in the areas of Information Security, Enterprise Risk Management and Compliance, Information Technology and Operations including 21 years with Visa Inc. where he performed as Senior Business Leader of Information Security. Magdiel has extensive experience in a broad range of areas related to Information Security, Network Engineering, and Enterprise Governance, Risk and Compliance and Payment networks within the financial industry. Management anticipates the closing of this transaction will occur in the first quarter or early 2nd quarter of 2023.
On June 27, 2019, Blockchain Valley Ventures and GES signed an amended agreement calling for a $25,000 CHF payment for the development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies, wherein BVV was to serve as an advisor in connection with a Voter Registration, Voter Authentication, and Voter Eligibility using a Blockchain Platform and GES would pay BVV $25,000 CHF payment upon completion of the engagement. This agreement replaced a June 19, 2019 engagement letter with Blockchain Valley Ventures (“BVV”) of Zug Switzerland. Under the terms of the original agreement, GES was to pay BVV 50,000 Swiss Francs (CHF).
GES made payments of $25,000 CHF and received the working paper primarily covering the following matters:
•
Development and facilitation of an extended workshop with relevant and best in class third party blockchain technology companies such as Phoenix Systems AG, Securosys AG and others as well as any subject matter expert to be invited by Global Election Services Inc.
•
Development of a high-level technology solution architecture and its requirements for the blockchain based voting registration platform with inputs from third party blockchain technology.
•
Documentation of the results of a) and b) in order to provide the basis of the technical development of the platform.
•
Development of an implementation recommendation with respect to Voting on the Blockchain Platform.
•
Legal facilitation with respect to outside tax and legal advisors in connection with compliance with local and international regulation.
•
Project Management during the engagement.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 11 - AGREEMENTS (continued)
The Working Paper discusses a high-level envisaged Blockchain platform, including a foundational flowchart, and implementation recommendation; BVV is a Crypto Valley, Switzerland based venture capital firm who consists of highly successful entrepreneurs, finance experts, blockchain technology experts and ICO experienced analysts and consultants. The documents created will be used by GES, to begin to create a Minimal Viable Product. This Product, along with GES licensing rights on GES existing Registration and Tabulation Software will be owned by GES. The Working Paper was completed in 2022.
GES Investment in TrueVote Inc.
On June 15, 2019, GES entered into a Term Sheet, and Common Stock Purchase Agreement to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES was to invest $50,000 into a 24 Month Debenture and issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. The Company will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc. The Company on December 17, 2019 paid $ 40,000 to True Vote. Under the terms of the agreement GES is to invest an additional $10,000 and the Company issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company. On June 1st, 2021, TrueVote issued its White Paper “A transparent Electronic Voting System validated by the Bitcoin Blockchain” TrueVote, Inc. is building a comprehensive end-to-end, de-centralized, completely digital voting system. This will be based on traditional, proven database methodologies, and layered with a "checksum" that's posted on the Blockchain, proving all data is immutable and unalterable. This design will ensure that every vote is transparently counted and verifiable. The transaction closed on February 27, 2023.
The TrueVote Voting System will be based on traditional, proven database methodologies and layered with a “checksum” that is posted on the blockchain, proving all data is immutable and unalterable.
True Vote is directed by Brett Morrison recently the Director of Enterprise Information Systems at SpaceX. Brett was as an e-commerce pioneer, getting brands online and creating a new channel for sales at the beginning of the e-commerce boom. Brett co-founded Onestop Internet in 2003 out of his garage and built the original e-commerce and warehouse management software that started the company. Throughout his time as Chief Technology Officer and Chief Innovation Officer at Onestop, he oversaw and managed its growth and architected and helped build the new Onestop 2.0 platform. Prior to Onestop, Brett co-founded one of the first photo sharing companies on the Internet, ememories.com, which was sold to PhotoWorks, one of the largest photo processing companies in the U.S. True Vote is also directed by Ped Hasid who graduated UCLA with Magna Cum Laude Honors in 2007. Ped later went on to cofound Block26, a venture vehicle for the DLT space established in 2014, leading the technology and investment strategy for the firm. Block26 to date has financed and incubated innovative projects that aim to enhance consumer adoption of DLT technology.
On June 15, 2019, GES entered into a Term Sheet to create a joint venture with TrueVote, Inc. Under the terms of the agreement GES will invest $50,000 into a 24 Month Debenture and issue a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of Global Arena Holding Inc., (“GAHC”). GAHC will receive 3 million common shares of TrueVote, representing 30% of TrueVote Inc. TrueVote, Inc. is building a comprehensive end-to-end, de-centralized, completely digital voting system. This will be based on traditional, proven database methodologies, and layered with a "checksum" that's posted on the Blockchain, proving all data is immutable and unalterable. This design will ensure that every vote is transparently counted and verifiable.Upon the closing of the agreement, GES will have invested $50,000 into a 24 Month Debenture and will have issued a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, and the Company will receive 3,000,000 common shares of TrueVote Inc. as part of the joint venture between the companies. The Company on December 17, 2019 paid $ 40,000 to True Vote. The Company will pay an additional $10,000 and a 3 year warrant exercisable at $0.01 for 4,500,000 common shares of the Company, in the 1st quarter of 2021. The transaction closed on February 27, 2023.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 11 - AGREEMENTS (continued)
2) Tidewater Energy Group Inc.
On November 19, 2019, the Company incorporated a new wholly owned entity in the State of Delaware called Tidewater Energy Group Inc. The Board of Directors appointed John S. Matthews and Jason Old as Board members.
The Company was formed to explore opportunities in the oil, gas, mineral, and energy business. Tidewater Energy Group Inc. has 40,000,000 common shares authorized: par value $0.001. There are currently 10,000,000 common shares issued and outstanding of which the Company holds 5,100,000 common shares (51%). The Company invested $50,000 into Tidewater Energy Group Inc. for general capital and administrative expenses in January 2020. The Company plans to close in the second quarter of 2023.
3) GAHI Acquisition Corp.
On June 7, 2019, the Company’s second subsidiary, GAHI Acquisition Corp. (GAHI) was authorized by the Company’s Board of Directors to infuse an initial deposit of $50,000 into the subsidiary for general capital and administrative expenses. GAHI Acquisition will be repurposed in order to explore potential new business ventures in an effort to increase shareholder value. The Company will cause GAHI Acquisition to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. The Company added Mr. Jason N. Old to the GAHI Acquisition Board as a Director. On November 28, 2019, the Company’s Board of Directors authorized the termination of the transaction previously authorized to infuse an initial deposit of $50,000 into GAHI Acquisition for general capital and administrative expenses and have GAHI Acquisition repurposed in order to explore opportunities in the energy and minerals business, which may provide investment opportunities, including the possibility of providing blockchain technology software to energy and mineral companies. GAHI Acquisition will remain a 100% subsidiary of the Company and will focus on Blockchain related companies for investments and acquisition.
On January 11, 2022, the Company entered into a 12% annum interest convertible promissory note with Mast Hill Fund, L.P. for the principal amount of $140,000 with an original issue discount in the amount of $14,000 mature in twelve months. The note can be converted to the Company’s common stock at $0.0005 per share. In connection with the issuance of the convertible promissory note, the Company also issued two common stock purchase warrant; the first common stock purchase warrant for a total of 100,000,000 shares of the Company’s common stock and the second common stock purchase warrant for a total of 260,000,000 shares of the Company’s common stock. The exercise price for both warrants are $0.0005 per share vesting in five years.
On February 2, 2022, Global Election Services, Inc. entered into a promissory note with Kim Kaminsky for the amount of $12,000 with original issue discount of $2,000. The note has been repaid in full as of March 31, 2022.
On February 3, 2022, Global Election Services, Inc. entered into a promissory note with Tom Kivisto for the amount of $17,500 with original issue discount of $2,500. The note bears 10% interest and mature in six months.
On March 30, 2022, the Company entered into a convertible note with Robert Reyers for the amount of $10,500. The note bears a 12% interest and mature in twelve months. The Note can be converted into 8,000,000 shares of the Company’s common stock.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 11 - AGREEMENTS (continued)
On March 30, 2022, the Company entered into a convertible note with Stanley Goldstein for the amount of $20,000. The note bears a 12% interest and mature in twelve months. The Note can be converted into 8,000,000 shares of the Company’s common stock.
On February 11, 2022, the Company entered into a 12% annum interest convertible promissory note with an investor for the principal amount of $140,000 with an original issue discount in the amount of $14,000 mature in twelve months. The note can be converted to the Company’s common stock at $0.0005 per share. In connection with the issuance of the convertible promissory note, the Company also issued two common stock purchase warrant, the first common stock purchase warrant for a total of 100,000,000 shares of the Company’s common stock and the second common stock purchase warrant for a total of 260,000,000 shares of the Company’s common stock. The exercise price for both warrants are $0.0005 per share vesting in five years.
On February 2, 2022, Global Election Services, Inc. entered into a promissory note with an investor for the amount of $12,000 with original issue discount of $2,000. The note has been repaid in full as of September 30, 2022.
On February 3, 2022, Global Election Services, Inc. entered into a promissory note with an investor for the amount of $16,500 with original issue discount of $2,500. The note bears 10% interest and mature in six months. On May 20, 2022, the company entered into a new agreement including the original payment and two additional payments of $10,000 on April 15, 2022 and $26,000 on May 20, 2022. The note bears an interest of 12% and matures in 30 days. On August 16, 2022, entered in to an new agreement including the payments above, an additional payment of $7,000 on August 16, 2022. The note bears an interest of 12% and matures in 30 days.
On March 30, 2022, the Company entered into a convertible note with an investor for the amount of $20,000. The note bears a 12% interest and mature in twelve months. The Note can be converted into Global Election Services Inc. common stock at an $8,000,000 valuation.
On April 7, 2022, Global Election Services, Inc. entered into a promissory note with an investor for the amount of $12,500 with original issue discount of $2,500. The note bears 12% interest and matures in 21 days. The note has been repaid in full as of September 30, 2022.
On April 7, 2022, Global Election Services, Inc. entered into a promissory note with an investor for the amount of $12,500 with original issue discount of $1,500. The note bears 12% interest and matures in 21 days.
On May 27, 2022, Global Election Services, Inc. entered into a promissory note with an investor for the amount of $10,000. The note bears 12% interest and matures in three months.
On June 3, 2022, Global Election Services, Inc. entered into a promissory note with an investor for the amount of $12,000 with original issue discount of $2,000. The note bears 10% interest and matures in 2 months.
On June 15, 2022, the Company entered into a 12% annum interest convertible promissory note with an investor for the principal amount of $140,000 with an original issue discount in the amount of $14,000 mature in twelve months. The note can be converted to the Company’s common stock at $0.0005 per share. In connection with the issuance of the convertible promissory note, the Company also issued two common stock purchase warrant, the first common stock purchase warrant for a total of 100,000,000 shares of the Company’s common stock and the second common stock purchase warrant for a total of 260,000,000 shares of the Company’s common stock. The exercise price for both warrants are $0.0010 per share vesting in five years.
On August 23, 2022, the Company entered into a 12% annum interest convertible promissory note with an investor for the principal amount of $62,000 with an original issue discount in the amount of $6,200 mature in twelve months. The note can be converted to the Company’s common stock at $0.0005 per share. In connection with the issuance of the convertible promissory note, the Company also issued two common stock purchase warrant, the first common stock purchase warrant for a total of 50,000,000 shares of the Company’s common stock and the second common stock purchase warrant for a total of 180,000,000 shares of the Company’s common stock. The exercise price for both warrants are $0.002 per share vesting in five years.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 11 - AGREEMENTS (continued)
On December 30, 2022, the Company entered into a 12% annum interest convertible promissory note with an investor for the principal amount of $150,000 with an mature in sixteen months. The note can be converted to the Company’s common stock at $0.0025 per share. In connection with the issuance of the convertible promissory note, the Company also issued one common stock purchase warrant, the common stock purchase warrant for a total of 7,500,000 shares of the Company’s common stock. The exercise price for both warrants are $0.0025 per share vesting in five years.
NOTE 12 - SUBSEQUENT EVENTS
The Company has evaluated subsequent events from the consolidated balance sheet date through March 31, 2022 (the consolidated financial statement issuance date).
On January 31, 2023, the Company and a note holder entered into a settlement, beginning February 5, 2023 and on the fifth day of the next four (4) months thereafter, the Company shall secure a third party (a “Third Party Purchaser”) to purchase from Holder a minimum of Sixty Thousand Dollars ($60,000) of unpaid principal and accrued interest under the Note and on July 1, 2023 the Company shall secure a Third Party Purchaser to purchase from Holder all remaining unpaid principal and accrued interest under the Note with each such purchase to be allocated pro rata between the remaining unpaid principal and accrued interest. The Company has been working with the note holder on an ongoing basis to complete the terms of the settlement.
On February 27, 2023, GES entered into a First Amendment to a Convertible Promissory Note originally dated December 20, 2019. The related Stock Purchase Agreement signed December 19, 2019, wherein GES received 3,000 common shares of the 10,000 common stock outstanding of TrueVote remained unchanged.
Pursuant to the First Amendment to a Convertible Promissory Note, the following material items were revised:
• The issuance date of the Note was amended from December 20, 2019, to February 27, 2023, and all references to the date of the Note therein shall be deemed to be February 27, 2023 and the new Maturity Date shall mean June 27, 2024.
• Further, GES has forgiven the previous Fifty Thousand Dollar ($50,000) Note unless TrueVote has one of the following conditions met prior to the Maturity Date:
i. an Event of Default described in Section 6(a)(i) and in Section 6(a)(ii) occurs; or
ii. Borrower issues ownership interests of Borrower that result in the ownership percentage of GES in Borrower to be less than 15% of the total ownership of Borrower.” GES would then be entitled to the principal sum of Fifty Thousand Dollars ($50,000), together with interest at the annual rate of 1.25% compounded annually, if, and only if, one of the preceding conditions is met prior to the Maturity Date.
As part of TrueVote revised transaction, new GAHC warrants were issued to the Principals of True Vote Inc., Brett Morrison and Ped Hasid. The warrants were issued on February 27, 2023 and each individual is entitled to exercise the warrants to purchase a maximum of 2,250,000 (Two Million, Two Hundred Fifty Thousand) fully-paid and non-assessable shares of the GAHC Common Stock, par value $0.001 per share at an exercise price of $0.0012 per Share, replacing a previous conversion price of $0.01. The warrants are exercisable for a period of two years from the issuance date.
GLOBAL ARENA HOLDING, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
NOTE 12 - SUBSEQUENT EVENTS (continued)
On January 26, 2023, the Company entered into a convertible note with 1800 Diagonal Lending, LLC for the amount of $54,600. The note bears a 12% interest and mature in twelve months.
On January 31, 2023, the Company entered into a Loan agreement with Family Business Fund, LLC for the amount of $41,000. The company will repay the loan in 24 weekly fixed payments of $2,426.
On March 10, 2023, the Company entered into a convertible note with Thomas Kivisto for the amount of $32,500. The note bears a 12% interest and mature in twelve months.
On March 7, 2023, the Company entered into a warrant purchase agreement with Cathleen Healey, for the purchase of up to ten million shares at a par value of $0.001 and the price of $0.002 per share. The agreement will expire two years after the date of issuance.
On March 8, 2023, the Company entered into a Media Consulting Agreement with Triple 8 Capital Corp (Media Consultant). The media consultant will provide consulting services in related to their operation and shall receive $3,200 per month for 6 months and the parties may negotiate to extend the term of the agreement.
Common Shares
On April 14, 2023, the Company issued restricted common shares at a per share price of $.0013 to the following independent contractors(“IC”) for consulting services rendered:
Amount
Name and position
14,322,799
Thomas, Kivisto, Managing Director of Fortis Industria LLC.
7,500,000
Court Consulting controlled by KiKi Vandeweghe - IC for GES consulting on corporate governance and union elections
7,500,000
Emily Janish - IC on all IT issues for GES and the Company
7,500,000
Ambassador Francisco - IC on European Union Elections
15,000,000
Lee Thiam Seng - IC on Asia Elections
7,500,000
James Moore - IC on Icon GES ballot design

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Controls and Procedures
During the year ended December 31, 2022, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our chief executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of December 31, 2022. Based on this evaluation, our chief executive officer and principal financial officers have concluded such controls and procedures were not effective as of December 31, 2022 to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
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. In the course of making our assessment of the effectiveness of internal controls over financial reporting, we identified material weaknesses in our internal control over financial reporting as follows.
• The relatively small number of employees who are responsible for accounting functions prevents us from segregating duties within our internal control system.
• Our internal financial staff lack expertise in identifying and addressing complex accounting issued under U.S. Generally Accepted Accounting Principles.
Upon receiving adequate financing, the Company plans to increase its controls in these areas by hiring more employees in financial reporting and establishing an audit committee.
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. The design of any system of controls is also based in part on certain assumptions regarding the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Given these and other inherent limitations of control systems, there is only reasonable assurance that our controls will succeed in achieving their stated goals under all potential future conditions.
Important Considerations
The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time. Because of these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reporting will be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management.

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ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
None
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
The following persons listed below have been retained to provide services as director until the qualification and election of his successor. All holders of common stock will have the right to vote for directors.
The board of directors has primary responsibility for adopting and reviewing implementation of the business plan of the Company, supervising the development business plan, review of the officers' performance of specific business functions. The board is responsible for monitoring management, and from time to time, to revise the strategic and operational plans of the Company. A director shall be elected by the shareholders to serve until the next annual meeting of shareholders, or until his or her death, or resignation and his or her successor is elected.
The Executive Officers and Directors are:
Name
Position
Term(s) of Office
John Matthews
Chief Executive Officer
March 20, 2014 to present
Director
October 27, 2010 to present
Chief Financial Officer
April 10, 2016 to present
Facundo Bacardi
Director
November 7, 2011 to present
Martin Doane
Director
November 7, 2011 to present
Resumes
John Matthews, age 61, has served as the Chief Executive Officer, Chief Financial Officer, and director of Global Arena Holding Inc. Mr. Matthews has served as the Chairman of Global Election Services since 2015 and a Director of GAHI Acquisition Corp. since 2015 and as a Director in Tidewater Energy Group since 2019. In these positions, he has directed the investment into Blockchain Technologies Corp and has initiated the upgraded elections software and hardware applications covering registration, election tabulation, and reporting. Mr. Matthews has been involved in United States politics since the 1980s, having worked on and for numerous State, Congressional and Presidential elections. Mr. Matthews worked on Senator Daniel Patrick Moynihan’s campaign for the US Senate in 1988 and concurrently served as Senator Moynihan’s Director of the Senator’s New York Office acting as the Senator’s senior Ombudsman and was responsible for all constituent services and legislative initiatives. Mr. Matthews served as an officer in various United States broker dealers from 1992 to 2014. He received a BA from Long Island University in 1987.
Facundo Bacardi, age 76, is a current shareholder and member of the family that owns and controls Bacardi Ltd., a worldwide liquor manufacturer and distributor. From 1979 to 1991, he was in charge of Bacardi’s manufacturing and distribution division for Nassau, Brazil, Trinidad and Central America. Currently, Mr. Bacardi serves as a director of Suramericana de Inversiones, S.A., an investment company located in Panama, and has served in that capacity since 1990.
Martin J. Doane, age 54, is a director of Global Arena Holdings Corp. since November 7, 2011. He has been a founding partner and CEO of Ubequity Capital since 2006. He served as vice president and secretary of Northern Empire Energy Corporation from March 20, 2012, to September 4, 2013. He was the chief executive officer of Adenyo Inc. from 2004 through 2009. He has served as the chief executive officer of MeeMee Media Inc. since April 2013. He was the vice president and secretary of EnDev Holdings Inc. from July 2010 to April 2013.
Mr. Doane is a graduate of the University of Western Ontario and holds an LL.B. from Osgoode Hall Law School.
Committees of the Board of Directors
We do not have standing audit, nominating or compensation committees, or committees performing similar functions. Our board of directors believes that it is not necessary to have standing audit, nominating or compensation committees at this time because the functions of such committees are adequately performed by our board of directors.
Section 16(a) Beneficial Ownership Reporting Compliance
Under Section 16(a) of the Securities Exchange Act of 1934, as amended, an officer, director, or greater-than-10% shareholder of the Company must file a Form 4 reporting the acquisition or disposition of Company's equity securities with the Securities and Exchange Commission no later than the end of the second business day after the day the transaction occurred unless certain exceptions apply. Transactions not reported on Form 4 must be reported on Form 5 within 45 days after the end of the Company's fiscal year. Such persons must also file initial reports of ownership on Form 3 upon becoming an officer, director, or greater-than-10% shareholder. To our knowledge, based solely on a review of the copies of these reports furnished to it, the officers, directors, and greater than 10% beneficial owners complied with all applicable Section 16(a) filing requirements during 2022.
Code of Ethics Policy
During July 2008, we adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions.
Corporate Governance
There have been no changes in any state law or other procedures by which security holders may recommend nominees to our board of directors. In addition to having no nominating committee for this purpose, we currently have no specific audit committee and no audit committee financial expert. Based on the fact that our current business affairs are simple, any such committees are excessive and beyond the scope of our business and needs.
Indemnification
The Company shall indemnify to the fullest extent permitted by, and in the manner permissible under the laws of the State of Delaware, any person made, or threatened to be made, a party to an action or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that he is or was a director or officer of the Company, or served any other enterprise as director, officer or employee at the request of the Company.
The board of directors, in its discretion, shall have the power on behalf of the Company to indemnify any person, other than a director or officer, made a party to any action, suit or proceeding by reason of the fact that he/she is or was an employee of the Company.
Insofar as indemnification for liabilities arising under the Act may be permitted to directors, officers and controlling persons of the Company, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceedings) is asserted by such director, officer, or controlling person in connection with any securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issues.
INDEMNIFICATION OF OFFICERS OR PERSONS CONTROLLING THE COMPANY FOR LIABILITIES ARISING UNDER THE SECURITIES ACT OF 1933, IS HELD TO BE AGAINST PUBLIC POLICY BY THE SECURITIES AND EXCHANGE COMMISSION AND IS THEREFORE UNENFORCEABLE.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
The following table set forth certain information as to the compensation paid to our executive officers.
Summary Compensation Table
Name and Principal Position
Cash
Year
Salary
($)
Stock Awards
($)
Option Awards
($)
All Other Compensation
($)
Total
($)
John Matthews
147,887
(1)
-
-
-
147,887
CEO
137,915
(2)
-
-
-
137,915
(1) Mr. Matthews received $0 as his salary from the Company and $147,887 from GES
(2) Mr. Matthews received $0 as his salary from the Company and $137,915 from GES.
Outstanding Equity Awards at Fiscal Year End
There were no equity awards outstanding at December 31, 2022. On April 13, 2020, the Board of Directors amended the employment contract of John Matthews dated December 8, 2017. Pursuant to the amended terms, the stock options granted under Section 3.3 of the employment contract were cancelled and granted Mr. Matthews a stock award of 55,000,000 common shares at $.0018 per common share (110% of the market price on the date of grant).
The shares were issued on October 21, 2020.
Director Compensation
The following table set forth certain information as to the compensation paid to our Directors.
Summary Compensation Table
Name and Principal Position
Cash Year
Salary
($)
Stock Awards
($)
Option Awards
($)
All Other Compensation
($)
Total
($)
John S. Matthews
147,887
(1)
-
-
-
147,887
Chairman
137,915
(2)
-
-
-
137,915
Facundo Bacardi
-
-
-
-
Director
-
-
-
-
-
Martin Doane
-
-
-
-
Director
-
-
-
-
-
1) Mr. Matthews received $0 as his salary from the Company and $147,887 from GES.
2) Mr. Matthews received $0 as his salary from the Company and $137,915 from GES.
On April 13, 2020, the Board of Directors cancelled the stock options authorized but never formally granted to Martin Doane and Facundo Bacardi as directors’ compensation for years ended December 31, 2017, 2018, and 2019 and granted Martin Doane and Facundo Bacardi stock awards of 36,682,692 common shares each at $.0018 per common share (110% of the market price on the date of grant. The shares were issued on October 21, 2020.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table sets forth, as of March 31, 2023, the number and percentage of our outstanding shares of common stock owned by (i) each person known to us to beneficially own more than 5% of its outstanding common stock, (ii) each director, (iii) each named executive officer and significant employee, and (iv) all officers and directors as a group.
Name and Address
Amount
Percentage
John Matthews
4,820,170(1)
1.15
%
208 East 51 Street, Suite 112
New York, NY 10022
Facundo Bacardi
3,056,891(1)
.73
%
208 East 51 Street, Suite 112
New York, NY 10022
Martin Doane
3,056,891(1)
.73
%
208 East 51 Street, Suite 112
New York, NY 10022
All Officers and Directors as a Group (3 persons)
10,933,952
2.60
%
On April 13, 2020, the Board of Directors granted the following stock awards to the directors at $.0018 per common share (110% of the market price on the date of grant). The shares were issued on October 21, 2020.
John Matthews - 55,000,000 (4,820,170 post reverse stock split) common shares
Martin Doane - 36,682,692 (3,056,891 post reverse stock split) common shares
Facundi Bacardi - 36,682,692 (3,056,891 post reverse stock split) common shares
Based upon 420,785,876 outstanding common shares as of April 14, 2023.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
Not applicable.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.
Audit Fees
The aggregate fees billed for the years ended December 31, 2022 and 2021 for professional services rendered by Raul Carrega (PCAOB # 1939) for the audit of the Company’s annual financial statements and review of the financial statements included in the Company’s Form 10-Q or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the periods ended December 31, 2022 and 2021 were $86,000 and $ 45,000, respectively.
Audit related fees
The aggregate fees billed for the years ended December 31, 2022 and 2021 for assurance and related services by Raul Carrega that are reasonably related to the performance of the audit or review of the Company’s financial statements for those fiscal years were included in the above listed were $0 and $0, respectively.
Tax Fees
We incurred aggregate tax fees and expenses from Raul Carrega during the years ended December 31, 2022 and 2021 for professional services rendered for tax compliance, tax advice, and tax planning of $0 and $0, respectively.
All Other Fees
The board of directors, acting as the Audit Committee considered whether, and determined that, the auditor's provision of non-audit services was compatible with maintaining the auditor's independence. All of the services described above for fiscal year 2022 were approved by the board of directors pursuant to its policies and procedures.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
(a)(1) List of Financial statements included in Part II hereof
Balance Sheets, December 31, 2022 and 2021
Statements of Operations for the years ended December 31, 2022 and 2021
Statements of Stockholders’ Equity (Deficit) for the years ended December 31, 2022 and 2021
Statements of Cash Flows for the years ended December 31, 2022 and 2021
Notes to the Financial Statements
(a)(2) List of Financial Statement schedules included in Part IV hereof: None.
(a)(3) Exhibits
The following exhibits are included herewith:
Exhibit No.
Description
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*
XBRL Instance Document
101.SCH*
XBRL Taxonomy Extension Schema Document
101.CAL*
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*
XBRL Taxonomy Extension Label Linkbase Document
101.PRE*
XBRL Taxonomy Extension Presentation Linkbase Document
*XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
Following are a list of exhibits which we previously filed in other reports which we filed with the SEC, including the Exhibit No., description of the exhibit and the identity of the Report where the exhibit was filed.
NO.
DESCRIPTION
FILED WITH
DATE FILED
1.1
Form of Underwriting Agreement
Form SB-2
February 11, 2002
1.2
Form of Agreement Among Underwriters
Form SB-2
February 11, 2002
1.3
Form of Selected Dealer Agreement
Form SB-2
February 11, 2002
1.4
Form of Consulting Agreement with
Schneider Securities, Inc.
Form SB-2
February 11, 2002
2.1
Form of Agreement and Plan of Merger
between Dickie Walker Marine, Inc., a
California corporation and Dickie Walker
Marine, Inc., a Delaware Corporation
Form SB-2
February 11, 2002
2.2
Acquisition Agreement
Form 8-K
February 8, 2005
2.3
Amendment No. 2 to Acquisition
Agreement
Form 8-K
July 20, 2005
2.4
Share Change Agreement
Form 8-K
April 13, 2006
2.5
Broker Dealer Stock Purchase Agreement
Form 8-K
August 8, 2014
3.1a
Articles of Incorporation for Montiel
Marketing Group, Inc. as filed with the
California Secretary of State on February
16, 2001
Form SB-2
February 11, 2002
3.1b
Certificate of Amendment to the Articles of
Incorporation as filed with the California
Secretary of State on February 16, 2002
Form SB-2/A
February 11, 2002
3.1c
Certificate of Incorporation for Dickie
Walker Marine, Inc. as filed with the
Delaware Secretary of State on February 4,
Form SB-2
February 11, 2002
3.1d
Certificate of Amendment to Articles of Incorporation filed with the State of Delaware on October 13, 2019
Form 10-K
September 9, 2020
3.2a
Bylaws of the California corporation as
adopted by its Board of Directors on
October 10, 2000
Form SB-2
February 11, 2002
3.2b
Amended and Restated Bylaws of the
Delaware corporation as adopted by its
Board of Directors May 1, 2002
Form SB-2/A
May 13, 2002
3.3
Certificate of Amendment of Certificate of
Incorporation of Dickie Walker Marine,
Inc.
Form 8-K
July 20, 2006
4.1
Specimen stock certificate representing
shares of common stock of the Company
Form SB-2/A
April 18, 2002
4.2
Form of Representative's Warrant
Form SB-2
February 11, 2002
4.3
Placement Agent's Warrant
Form SB-2
February 11, 2002
4.4
Form of Investor Note from 2001 Private
Placement
Form SB-2
February 11, 2002
4.5
Selling Agent Agreement
Form 10KSB
December 29, 2004
4.6
Investor Promissory Note
Form 10KSB
December 29, 2004
4.7
Investor Warrant
Form 10KSB
December 29, 2004
4.8
Placement Agent's Warrants
Form 10KSB
December 29, 2004
4.9
Certificate of Designation for Preferred
Stock
Form 8-K
April 13, 2006
4.10
Stock Option and Proxy
Form SC 13D
December 7, 2010
4.11
2011 Stock Awards Plan
Form S-8
July 6, 2011
10.1
$50,000 Promissory Note in favor of Gerald
W. Montiel dated January 15, 2002
Form SB-2
February 11, 2002
10.2
$45,000 Promissory Note in favor of Gerald
W. Montiel dated January 31, 2002
Form SB-2
February 11, 2002
10.3
Form of Reimbursement Agreement
between Gerald W. Montiel and the
Company dated February 1, 2002
Form SB-2
February 11, 2002
10.4
License Agreement between Gerald W.
Montiel and the Company dated February 1,
Form SB-2
February 11, 2002
10.5
Strategic Alliance Agreement with West
Marine Products, Inc. dated October 19,
2001 (Confidential Treatment Requested)
Form SB-2/A
May 13, 2002
10.6
Facility Lease Agreement with WHMF
dated February 1, 2002 for the facility
located at 1414 South Tremont Street,
Oceanside, California
Form SB-2
February 11, 2002
10.7
2002 Equity Incentive Plan
Form SB-2
February 11, 2002
10.8
Form of Lock-Up Agreement among the
officers, directors and stockholders and the
representative
Form SB-2
February 11, 2002
10.9
Form of Employment Agreement with
Gerald W. Montiel dated February 1, 2002
Form SB-2
February 11, 2002
10.10
Equipment Lease Agreement with Emtex
Leasing Corporation dated April 4, 2001
Form SB-2
February 11, 2002
10.11
Form of Stockholder Rights Agreement
Form SB-2/A
April 1, 2002
10.12
Lease Agreement
Form 10KSB
December 20, 2002
10.16
Separation Agreement and Complete
Release
Form 8-K
October 21, 2003
10.17
Dick Walker Marine Inc. Code of Ethics
Form 10KSB
December 17, 2003
10.18
Financial and Code of Ethics Complaint
Procedure Policy
Form 10KSB
December 17, 2003
10.19
Amendment to Strategic Alliance
Agreement
Form 10KSB
December 17, 2003
10.20
Form of Parent Support Agreement
Form 8-K
February 8, 2005
10.21
Form of Lock-Up Agreement
Form 8-K
February 8, 2005
10.22
Consulting Agreement with Gerald Montiel
Form 8-K
February 8, 2005
10.23
Form of Incentive Stock Option Grant
Under DWM 2002 Equity Incentive Plan
Form S-4
May 10, 2005
10.24
Form of Non-Qualified Stock Option Grant
Under DWM 2002 Equity Incentive Plan
Form S-4
May 10, 2005
10.25
Mutual Lease Agreement
Form 8-K
October 14, 2005
10.26
Form of Employment Agreement with
Gerald W. Montiel
Form 8-K
April 13, 2006
10.27
Form of Employment Agreement with
Javier Vidrio
Form 8-K
April 13, 2006
10.28
Form of Consulting Agreement with
Montiel Marketing Group
Form 8-K
April 13, 2006
10.29
Agreement and Plan of Reorganization
Form 8-K
January 25, 2011
10.30
Assignment and Assumption and
Management Agreement
Form 8-K
January 25, 2011
10.31
Securities Purchase Agreement
Form 8-K
January 7, 2013
10.32
Amendment 1 to Securities Purchase
Agreement
Form 8-K
January 25, 2013
10.33
Agreement of Sale
Form 8-K
January 31, 2013
10.34
Member Interests Purchase Agreement by
and between the Company and Courtney
Smith
Form 8-K
March 19, 3013
10.35
Management and Investor Rights
Agreement
Form 8-K
May 10, 2013
10.36
Subordinated Promissory Note and
Conversion Agreement between the
Company and Jia Hui New Climate
Investment Ltd.,
Form 8-K
December 4, 2013
10.37
Warrant to purchase common stock issued
to Jia Hui New Climate Investment Ltd.
Form 8-K
December 4, 2013
10.38
Settlement agreement between the
Company, GAIM and FireRock
Form 8-K
December 12, 2013
10.39
Securities purchase agreement between the
Company, GAIM and FireRock
Form 8-K
December 12, 2013
10.40
Convertible Promissory Note and Warrant
Purchase Agreement
Form 8-K
December 19, 2014
10.41
Master Services Agreement with HCAS
Form 8-K
January 29, 2018
10.42
Securities purchase agreement with UAHC
Ventures
Form 8-K
December 22, 2017
10.43
Convertible promissory note with UAHC
Ventures
Form 8-K
December 22, 2017
10.44
Warrant issued to UAHC
Form 8-K
December 22, 2017
10.45
John Matthews GAHC Chairman agreement
Form 8-K
December 15, 2017
10.46
John Matthews GAHC employment
agreement
Form 8-K
December 15, 2017
10.47
Kathryn Weisbeck GAHC employment
agreement
Form 8-K
December 15, 2017
10.48
John Matthews GES Chairman agreement
Form 8-K
December 15, 2017
10.49
John Matthews GES employment
agreement
Form 8-K
December 15, 2017
10.50
Kathryn Weisbeck GES employment
agreement
Form 8-K
December 15, 2017
10.51
Stock purchase agreement with Nikolaos
Spanos
Form 8-K
October 21, 2015
10.52
John Matthews GAHC employment
agreement
Form 8-K
August 11, 2015
10.53
Anthony Crisci GAHC employment
agreement
Form 8-K
August 11, 2015
10.54
Kathryn Weisbeck GAHC employment
agreement
Form 8-K
August 11, 2015
10.55
Convertible promissory note and warrant
purchase agreement with Apollo Capital
Form 8-K
July 6, 2015
10.56
Convertible promissory note with Apollo
Capital
Form 8-K
July 6, 2015
10.57
Convertible promissory note with
Capitoline Ventures II
Form 8-K
July 6, 2015
10.58
Consulting agreement with Complete
Advisory Partners
Form 8-K
June 24, 2015
10.59
Allonge Agreement with St. George Investments LLC dated 1/7/19
Form 8-K/A
January 15, 2019
10.60
1st Amendment to Allonge Agreement with St. George Investments LLC dated 2/6/19
Form 8-K/A
February 13, 2019
16.1
Letter from Ernst and Young LLP
Form 8-K
September 15, 2005
16.2
Letter from Mendoza Berger and Company,
LLP
Form 8-K/A
June 30, 2006
16.3
Letter from Patricia and Zhao, LLC
Form 8-K/A
March 20, 2008
16.4
Auditor's Letter: P.C. Liu
Form 8-K/A
September 15, 2011
16.5
Change of Accountant Letter
Form 8-K
February 9, 2012
16.6
Change of Accountant Letter - Anton and
Chia
Form 8-K/A
January 25, 2017
16.7
Change of Accountant Letter - Wei Wei
Form 8-K
June 14, 2016
24.1
Limited Power of Attorney
Form 4
July 30, 2003
99.1
Certification for CEO
Form 10KSB
December 20, 2002
99.2
Certification for CFO
Form 10KSB
December 20, 2002
99.3
Press Release for Dickie Walker Marine,
Inc.
Form 8-K
December 18, 2003
99.4
Press Release Dated February 11, 2004
Form 8-K
February 12, 2004
99.5
Press Release
Form 8-K
April 4, 2004
99.6
Press Release
Form 8-K
September 3, 2004
99.7
Press Release
Form 8-K
December 30, 2004
99.8
Press Release
Form 8-K
February 8, 2005
99.9
Press Release
Form 8-K
May 13, 2005
99.10
Press Release
Form 8-K
June 1, 2005
99.11
Press Release
Form 8-K
July 7, 2005
99.12
Press Release
Form 8-K
July 20, 2005
99.13
Press Release
Form 8-K
August 3, 2005
99.14
Press Release
Form 8-K
August 17, 2005
99.15
Press Release
Form 8-K
October 14, 2005
99.16
Press Release
Form 8-K
November 7, 2005
99.17
Press Release
Form 8-K
April 13, 2006
99.18
Agreement and Plan of Merger
DEF 14C
April 29, 2011
99.19
Section 262 of DGCL
DEF 14C
April 29, 2011
99.20
Share Purchase Agreement
Form 8-K
July 20, 2012
99.21
Financial Statements and Supplementary
Information
Form 8-K
July 20, 2012
99.22
Financial Statements and Supplemental
Schedule and Independent Auditor's Report
and Supplemental Report on Internal
Control and Independent Accountants'
Report on Applying Agreed-Upon
Procedures
Form 8-K
July 20, 2012
99.23
Statement of Financial Condition
Form 8-K
July 20, 2012