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 Trident Merchant Group, Inc. and Progressive Fashions Inc. and our majority-owned subsidiaries Leading Edge Fashion LLC, Pure361, LLC., 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.

After ceasing the publishing operations, our company's operations consisted solely of utilizing the expertise of our Board Members and outside agents to further the efforts our advisory services business plan through a wholly-owned subsidiary known as Trident Merchant Group, Inc.

In addition, during the fourth quarter of 2013, our company became involved in the manufacturing and global distribution of ladies' apparel. During the second quarter, 2014 our company formed Leading Edge Fashions, LLC of which it controlled 51% of the membership interest. Effective December 31, 2014 our Board of Directors determined it was in the best interest of our company to discontinue the operations of Leading Edge Fashions, LLC, and in 2014 our company stopped developing a footprint in the apparel business due to cash restraints and logistics and ceased agreements with all third-parties to distribute their products into SE Asia and China.






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Trident has also ceased operations to concentrate on the opportunities related to rejuvenating fibers and re-purposing them into finished products.

Our company created a new limited liability company, Pure361, LLC ("Pure361") in May 2015 for the purpose of operating the portion of our company's business that is involved with the collection, rejuvenation and manufacturing of garments and other accessories for the uniform marketplace that serves the hospitality, food service, medical, manufacturing, education, military, transportation and other commercial uniform industries. Our company owns 51% of Pure361. Pure361 entered into a license agreement with Pure System International Ltd. ("Pure"), the minority owner of Pure 361, related to potential future operations in which Pure361 was granted the exclusive license to use certain licensed intellectual property related to the manufacturing of uniforms from recyclable waste. Pure361 has had no operations to date, nor did it have any assets or liabilities as of September 30, 2019 or December 31, 2018.

We created a new wholly owned subsidiary, Progressive Fashions Inc. ("PFI") in February 2016 for the purpose of designing, producing and marketing the EMME® Activewear Collection. On June 5, 2017 our company and True Beauty, LLC (the company that controls the EMME® trademark) terminated the license agreement in order to focus resources on the Rejuvenated Uniform Segment. PFI has generated no revenue to date, nor did it have any assets or liabilities as of September 30, 2019 or December 31, 2018.

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. Our company is not assuming any liabilities of AH other than the lease for the facility where the equipment is located.

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.

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.

Our address is 50 Division Street, Suite 501, Somerville, New Jersey 08876. Our corporate website is http://ecotek360.com/.

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 is to operate a fiber rejuvenation technology company. It plans on offering 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.






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The Rejuvenated Uniform Segment

In April 2015, we entered into a joint venture and license agreement with Pure Systems International, Ltd. to produce and market garments and other accessories for the commercial uniform marketplace and other market verticals by utilizing Pure Systems International, Ltd.'s patented processes to up-cycle pre-consumer textile waste into reusable fiber of equal or better quality than the original fabric. (the "Rejuvenated Fiber").

In May of 2015, we created a new limited liability company, Pure361, LLC ("Pure361") of which our company owns 51% and Pure Systems International, Ltd. owns 49%. Pure361 has the exclusive licensee to use Pure System International Ltd.'s patented Rejuvenated Fiber in conjunction with the commercial uniform marketplace and other market verticals.

Ms. Joy Nunn, our company's former CTO and Board member resigned as of February 14, 2017, but our company still maintains a license with Pure System International, Ltd.

To further strengthen its capabilities in the Rejuvenated Uniform segment our company has identified alternative technologies to those under license from Pure Systems. The company will be developing customers using this alternative technology by working with equipment vendors and toll manufacturers to produce sales samples.

The Rejuvenated Cardboard Segment

In conjunction with its focus on rejuvenated technologies, we are exploring the possibility of also manufacturing a rejuvenated cardboard product and is in the early stages of exploring this potential opportunity.





Results of Operations

The following table provides selected financial data about our company for the three months period ended June 30, 2020 and the year ended December 31, 2019.





                                  June 30,       December 31,
                                    2020               2019            Change           %

Cash and cash equivalents $ 4,736 $ 4,794 $ (58 ) -1.2 % Prepaid interest and deposits $ 42,542 $ 96,214 $ (53,672 ) -55.8 % Inventories

$     60,815     $      60,815     $          -           -
Property and equipment          $    188,065     $     213,037     $    (24,972 )      11.7 %
Operating lease right of use    $     15,793     $      46,971     $    (31,178 )     -66.4 %
Intangible assets               $     68,620     $       69284     $       (664 )      -0.9 %
Total Assets                    $    380,571     $      69,284     $   (110,545 )     -22.5 %
Total Liabilities               $  2,263,420     $   3,360,423     $ (1,097,003 )      -9.7 %
Stockholders' Deficit           $ (2,155,327 )   $  (2,869,307 )   $    986,458       -34.4 %

The following summary of our results of operations, for the three and six months ended June 30, 2019, should be read in conjunction with our financial statements, as included in this Form 10-Q.

Siox months ending June 30, 2020, compared to six months ending June, 2019






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                                           Six Months Ended
                                               June 30,
                                         2020            2019          Change          %
Revenue                               $     6,027     $        -     $    6,027         100 %
Cost of Revenues                            3,860                         3,860         100 %
Operating Expenses
Depreciation and Amortization              56,814              -         56,814         100 %

General and administrative expenses 149,483 227,129 (77,646 ) -34.2 % Stock based compensation

                      700         83,574        (82,874 )     -99.2 %
Gain from extinguishment of debt                                         12,041        -100 %
Other expense                              35,806       (338,309 )     (140,864 )     -90.8 %
Net loss                              $ (240,636)       (686,971 )   $ (446,335 )     -65.0 %

For the six months ended June 30, 2020, we have revenues of $6,027 with a cost of $3,860, sales generated from the Company acquired AH Originals, Inc. We incurred $149,483 in general and administrative expenses, depreciation and amortization of $56,814, stock-based compensation of $700, and other expense of $35,806, resulting in a net loss of $240,636.

For the six months ended June 30, 2019, we incurred $227,129 in general and administrative expenses, stock-based compensation of $83,574, gain on extinguishment of debt of $12,041 and other expense of $388,309, resulting in a net loss of $686,971.

The decrease in net loss during six months ended June 30, 2020, compared to six months ended June 30, 2019 was mainly attributed to the decrease in interest expenses financing cost and stock based compensation.

Liquidity and Capital Resources

The following table provides selected financial data about our company as of June 30,2020 and December 31, 2019, respectively.





Working Capital



                       June 30, 2020       December 31, 2019         Change          %
Current Assets        $       108,093     $           161,824     $    (53,731 )     -33 %
Current Liabilities   $     2,263,420     $         3,360,423         (325,944 )     -33 %
                      $    (2,155,327 )            (3,198,600 )   $ (1,043,273 )     -33 %

Our working capital deficit decreased as of June 30,2020, as compared to December 31, 2019, due mainly to the decrease increase in convertible notes.





Cash Flows



                                              Six Months Ended
                                                  June 30,
                                            2020           2019         Change           %

Cash Flows used in Operating Activities $ (61,058 ) $ (274,885 ) $ (77,392 ) -112 % Cash Flows used in Investing Activities $ -

              -             -             -
Cash Flows provided by Financing
Activities                                $  61,000        245,575       (49,439 )         -71 %

Net Change in Cash During Period $ 335 (29,310 ) 28,975 -98.9 %







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Cash Flow from Operating Activities

During the six months ended June 301, 2020, net cash used in operating activities was $61,058 compared to $274,885 during the six months ended June 30, 2019.

The net cash used in operating activities for the six months ended June 30, 2020 was attributed to a net loss of $240,636, decrease by depreciation and amortization $58,815, amortization of debt discount $27,486, prepaid interest deposits $53,672 and accounts payable and accrued expenses $35,818.

The net cash used in operating activities for the six months ended June 30, 2019 was attributed to a net loss of $686,971, increased by gain from extinguishment of debt of $12,041, expense paid for subsidiary of $16,336, a decrease in prepaid interest and deposits of $13,039 and a decrease in accounts payable and accrued expenses of $43,974, offset by depreciation of $190, expenses paid for directly by related party of $25,396, amortization of debt discount of $358,722, stock based compensation expense of $83,574, an increase in bank indebtedness of $6 and an increase in accrued interest of $29,588.

Cash Flow from Investing Activities

The Company did not use any funds for investing activities during the six months ended June 30, 2020 and 2019

Cash Flow from Financing Activities

Net cash from financing activities was $61,000 for the six months ended June 30, 2020 attributable to proceeds from issuance ofconvertible notes.

Net cash from financing activities was $245,575 for the six months ended June 30, 2019 attributed to proceeds from issuance of convertible promissory notes of $319,500, proceeds from issuance of common stock of $43,500 and proceeds from subscription payable of $80,000, offset by repayment on a convertible note of $135,000 and repayment of related party advances of $62,425.

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, 2019, 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.






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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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