During the years ended December 31, 2019 and 2018, we had revenues of $105,583 and $200,061, respectively. Our general and administrative expenses increased to $1,097,000 for the year ended December 31, 2019, compared to $1,041,067 during the year ended December 31, 2018. This increase was primarily the result of increases in marketing costs, investor relations and insurance.

Interest expense during the year ended December 31, 2019 increased to $1,432,516 from $284,307 during the year ended December 31, 2018. The increase was primarily the result of additional interest on convertible debt needed for operations, prepayment interest penalties, the amortization of debt discounts and the default on certain convertible notes payable which resulted in increased interest expenses.

Our sources and (uses) of cash for the years ended December 31, 2019 and 2018 are shown below:



                                                  2019            2018

Cash flows used in operating activities $ (1,536,882 ) $ (964,546 ) Cash flows from investing activities

                     -               -
Cash flows provided by financing activities      1,448,750       1,019,148
Net change in cash                            $    (88,132 )   $    54,602



Debt Conversion

2019 Debt Conversions - Unaffiliated

During the year ended December 31, 2019, unaffiliated holders of our convertible notes payable, elected to convert $234,678 of principal into 281,322,314 shares of our common stock and $18,766 in accrued interest into 101,256,825 shares of common stock.

During the year ended December 31, 2019, unaffiliated convertible debt holders were issued 87,705,792 shares of common stock in exchange for satisfaction of $15,100 in outstanding invoices.

2018 Debt Conversions - Related Party

During the year ended December 31, 2018, related party holders of our convertible notes payable, elected to convert $79,590 of principal into 289,417 shares of our common stock and $27,487 in accrued interest into 99,953 shares of common stock.

2018 Debt Conversions - Unaffiliated

During the year ended December 31, 2018, unaffiliated holders of our convertible notes payable, elected to convert $427,775 of principal into 1,166,469 shares of our common stock and $13,835 in accrued interest into 35,781 shares of common stock at a price of $.275 per share.



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See Note D to the December 31, 2019 and 2018 consolidated financial statements, which are a part of this report, for a discussion of our notes payable.

Other than funding our operating expenses and paying our notes payable, we did not, as of December 31, 2019, have any significant capital requirements.

We do not know of any trends, demands, commitments, events or uncertainties that will result in, or that are reasonable likely to result in, our liquidity increasing or decreasing in any material way.

Other than the foregoing, we do not know of any significant changes in our expected sources and uses of cash. We do not have any commitments or arrangements from any person to provide us with any equity capital.

See Note B to the financial statements included as part of this report for a description of our significant accounting policies.

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