FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our consolidated unaudited financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our company", mean Global Fiber Technologies, Inc. a Nevada corporation, and our wholly-owned subsidiaries Eco Chain 360, Inc. and Authentic Heroes, Inc., unless otherwise indicated.





General Overview

Global Fiber Technologies, Inc. was incorporated in Nevada on March 25, 2005, under the name "Premier Publishing Group, Inc.". Originally formed as a publishing company, our company ceased publishing operations in or around 2007.

On May 28, 2019, we entered into an asset purchase agreement (the "Purchase Agreement") with AH Originals, Inc. ("AH"), pursuant to which we will acquire from AH certain assets including: equipment (which includes a Della' Orco Sample Line, Electro Steam Boiler/Steamer and Schulz 5 HP Condenser), inventory, materials, intellectual property (including PCT/US2018/047918 - Authenticatable Articles, Fabric and Method of Manufacture, 16/311,095 - Authenticatable Articles, Fabric and Method of Manufacture, as well as the rights the trademarks, trade names, logos, etc. For "Authentic Heroes", "Feel the Bond", and "Event Worn Reborn"), along with all domain names of AH. The purchase will be paid through the issuance of 6,400,000 shares of our common stock and 200,000 shares of common stock of Authentic Heroes, Inc. (a subsidiary created by the Company to receive and operate the purchased assets), and the remaining $480,000 will be paid through a promissory note at 3% interest with a three-year term.

The terms of the Purchase Agreement completed on June 18, 2019. The aggregate consideration was $447,150 payable via a promissory note at 3% interest with an amended loan term with an initial term of one-year and eight options for the noteholder to extend the maturity date for three-month periods, as opposed to the original three-year term. The balance of the purchase price was to be paid through the delivery to Seller of 6,400,000 shares of our common stock and 200,000 shares of common stock of Authentic Heroes, Inc. (a subsidiary created by our company to receive and operate the purchased assets). Our company did not assume any liabilities of AH other than the lease for the facility where the equipment purchased is located.






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On July 17, 2019 Authentic Heroes Inc., our majority owned subsidiary entered into a "merchandise license agreement" with IMG/Football Greats Alliance whereby Authentic Heroes will make authenticated replicas of "game worn" jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

On September 21st, of 2020, Authentic Heroes Inc. signed a license Yungblud and Bravado/Universal Music Group to will make authenticated replicas of "concert worn" jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

On April 18, 2022, Authentic Heroes Inc. entered into a joint venture agreement with N.S.UC. Entertainment Group, LLC and created a Limited Liability Corporation Above the Beats Entertainment dba ATB Entertainment, under the operating agreement to engage in various activities in the industry of the music including but not limited to live concerts, podcasts, Non-Fungible Tokens, physical memorabilia utilizing patent protected manufacturing processes, and the licensing of talent within the music industry. Authentic Heroes will hold 70% interest in the Joint venture. As of June 30, 2022, there are significant activities with the Joint Venture.

We have never declared bankruptcy or been in receivership. We have earned minimal revenues and have limited cash on hand. We have sustained losses since inception and have primarily relied upon the sale of our securities and loans from related parties for funding.





Our Current Business

We are currently in the development stage. Our business plan includes creating branded and authenticated replicas from the textile fibers of "event worn" apparel, formerly worn by celebrities within the music and sports industries. We have achieved this milestone and are in the process of creating commercial opportunities utilizing our process and trade secrets.

We are also in the process of printing Vinyl Records from a catalogue of 17,000 Master Recordings in Joint Venture with Maestro Entertainment. We have bought the raw materials necessary to create vinyl records and we are in the process of seeking out purchase orders for a music compilation that has been completed and ready to distribute into both brick-and-mortar retail stores as well as selling directly from our e-commerce site.

In addition, we anticipate in the future when finances allow to operate a fiber rejuvenation facility. the plans are to offer branded fabrics, apparel and uniforms to the corporate, hotel, hospital and military markets. We will achieve this by utilizing a patented and proprietary process for rejuvenating textile waste into high quality fabrics and apparel.

On July 17, 2019 Authentic Heroes Inc., our majority owned subsidiary entered into a "merchandise license agreement" with IMG/Football Greats Alliance whereby Authentic Heroes will make authenticated replicas of "game worn" jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

On December 1st 2019, Authentic Heroes signed a license agreement with Universal Music Group/Bravado and the Hip Hop group "RUN DMC. Authentic Heroes is currently working with Bravado and RUN DMC to monetize the opportunity with both digital and physical opportunities. Terms of the deal were deemed and implied confidential by the contract.






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On September 21st, of 2020, Authentic Heroes Inc. signed a license Yungblud and Bravado/Universal Music Group to will make authenticated replicas of "concert worn" jerseys utilizing its trade secrets and patent pending processes. Terms of the deal were deemed and implied confidential by the contract.

The company has also completed the coding of three separate smart contracts based on the Ethereum Blockchain The smart contracts ERC 721, 721a and ERC 1155 are to be used in conjunction with the sale of both physical and virtual items in order to create the authentication, provenance and immutability of the products it will be offering including event worn clothing under the taglines of "Made from The Original" and "Event Worn ReBorn". It will also be the Smart Contract for the Company's future offering of Non-Fungible Tokens ("NFTS")

On May 2, 2022, Authentic Heroes, Inc. ("Authentic Heroes"), a wholly owned subsidiary of Global Fiber Technologies, Inc., (the "Company"), entered into a License Agreement (the "License Agreement") with the Company's Chief Executive Officer and Director, Paul Serbiak ("Serbiak").

Pursuant to the License Agreement, Serbiak agreed to provide Authentic Heroes with an exclusive license to use certain of Serbiak's intellectual property rights, including Patent No. US 10,781,539 B2 entitled "AUTHENTICATABLE ARTICLES, FABRIC AND METHOD OF MANUFACTURE" and of the invention therein described, for products in the sports and music memorabilia business.

In exchange for such license, Authentic Heroes agreed to (i) pay Serbiak $100 within ten business days of License Agreement and a fee of $10,000 on or before January 1, 2023, (ii) pay Serbiak royalties of 1% of the revenue generated from the sale of the products amounting to at least $3,000,000 in revenue at year three of the License Agreement and another 1% of the revenue generated from the sale of the products amounting to at least $10,000,000 in revenue at year five (5) of the License Agreement. If Authentic Heroes fails to achieve at least $3,000,000 in revenue at year three or $10,000,000 in revenue at year five from this date of the License Agreement, then the exclusive license shall be a non-exclusive license.





Results of Operations

The following summary of our results of operations, for the six months ended June 30, 2022, should be read in conjunction with our financial statements, as included in this Form 10-Q.





Comparative six months period ending June 30, 2022 and 2021 for revenues and
operating expenses.



                                         2022          2021          Change          %
Revenue                               $        -     $     193     $      193         -100 %
Cost of Revenue                                -        (2,249 )        2,249         -100 %
Operating Expenses
General and administrative               (52,281 )     (74,241 )       21,960       -29.58 %
Depreciation and amortization            (58,970 )     (58,970 )            -         0.00 %
Professional Fees                        (51,349 )           -        (51,349 )       -100 %
Stock based compensation                               (10,000 )       10,000          100 %
Gain from extinguishment of debt          15,856             -         15,856         -100 %

Loss (gain) on derivative valuation 478,754 157,825 320,929 203.34 % Interest and Financing cost

              (35,102 )     (41,121 )        6,019       -14.64 %
Interest expense related parties        (102,834 )           -       (102,834 )       -100 %
Other expense                             (3,750 )           -         (3,750 )       -100 %
Net Income (Loss)                        190,324       (28,563 )

For the six months ended June 30, 2022, we have no revenues and in 2021 revenue was minimal this is primarily due to company refocusing its operations toward the new business with Authentic Heroes and NFTS. Our operating expense for the six months ended June 30, 2022, compared to 2021, have increase by $19,389 or 14%. This is primarily due to various Professional and consulting fees incurred during the six months period amounting to approximately $51,349. We did not incur such fees in the previous year.






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Other Income consist of derivative valuation gain of $478,754 and $157,825 for the six months period ending June 30, 2022, and 2021 respectively. We also recognized gain from extinguishing of convertible notes because of conversion to common stock.

Liquidity and Capital Resources

The following table provides selected financial data about our company as of June 30, 2022 and December 31, 2021, respectively.





Working Capital



                                June 30        December 31,
                                  2022             2021            Change          %
Current Assets                $    350,622     $           -     $   (6,479 )        100 %
Current Liabilities           $ (3,736,216 )   $  (3,853,273 )     (117,057 )     (13.92 )%
Net working capital deficit   $ (3,385,594 )      (3,853,273 )   $  467,679       (12.14 )%




Our working capital deficit decreased as of June 30, 2022, as compared to
December 31, 2021, due mainly to the decrease in the valuation of derivative
liabilities.



Cash Flows



                                           Six Months Ended
                                               June 30,
                                          2022           2021          Change           %
Cash Flows used in Operating
Activities                             $ (473,793 )   $ (156,996 )   $ (316,797 )        (201 )%
Cash Flows used in Investing
Activities                             $        -              -              -             -
Cash Flows provided by Financing
Activities                             $  503,437        150,164       (353,273 )        (235 )%

Net Change in Cash During Period $ 25,622 (6,832 ) (6,832 ) (475 )%

Cash Flow from Operating Activities

During the six months ended June 30, 2022

The net cash used in operating activities for the six months ended June 30, 2022 of $473,793 was attributed by the total net income of $190,324, offset by gain in change in derivative liability of $478,754 and decrease by increase in Advances $325,000.

Cash Flow from Investing Activities

The Company use $4,022 to purchased office equipment in June 2022 and did not use any funds for investing activities during the six months ended June 30, 2021.






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Cash Flow from Financing Activities

Net cash from financing activities was $503,437 for the six months ended June 30, 2022. Due to proceeds from convertible notes $354,777, Proceeds received from accredited investors for purchase of warrants to purchase common stocks $60,000 and proceeds of $33,439 from related parties. Previous year ending June 30, 2021 period $20,000 proceeds received from related parties.

Off-Balance Sheet Arrangements

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

The report of our auditors on our audited financial statements for the fiscal year ended December 31, 2021 and 2020, contains a going concern qualification as we have suffered losses since our inception. We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

Limited Operating History; Need for Additional Capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are a development stage company and have not generated any revenues from operations to fully implement our business plan. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, and competition from larger organizations. We will require equity and/or debt financing to provide for the capital required to implement our plans. We will require additional funds to operate for the next year.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations.

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