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.

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.






         18

  Table of Contents

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.





Results of Operations

The following table provides selected financial data about our company for the three months period ended March 30, 2021 and the year ended December 31, 2020.





                                 March 31,       December 31,
                                    2021             2020           Change          %
Cash and cash equivalents       $     10,767     $       8,548     $   2,219        25.96 %
Prepaid interest and deposits   $                $           -     $       -            - %
Inventories                     $     60,815     $      60,815     $       -            - %
Property and equipment          $    150,607     $     163,093     $ (12,486 )      (7.66 )%
Intangible assets               $    112,463     $     129,462     $ (16,999 )     (13.13 )%
Total Assets                    $    334,652     $     361,918     $ (27,266 )      (7.53 )%
Total Liabilities               $ (3,102,560 )   $  (3,139,998 )   $ (37,438 )       1.19 %
Stockholders' Deficit           $ (2,839,651 )   $  (2,778,080 )   $ (61,571 )       2.22 %





         19

  Table of Contents

The following summary of our results of operations, for the three months ended March 31, 2021, should be read in conjunction with our financial statements, as included in this Form 10-Q.





Three months ending March 31, 2021, compared to three months ending March 31,
2020



                                         Three Months Ended
                                             March 31,
                                        2021           2020         Change           %
Revenue                               $     193     $   (1,916 )   $  (1,723 )      (89.93 )%
Cost of Revenues                         (1,050 )       (3,005 )      (1,955 )       65.06 %
Operating Expenses
Depreciation and Amortization           (29,485 )      (28,407 )      (1,078 )        3.79 %
General and administrative expenses     (12,689 )      (99,846 )      87,157        (87.29 )%
Gain from extinguishment of debt
Other income/(expense)                   53,203        (35,806 )      89,009        248.59 %
Net income/(loss)                     $  10,172       (165,148 )   $ 175,320       (106.16 )%

Net loss decreased by $175,320 compared to previous year's first quarter of operations primarily due to reduction of compensation and office administrative cost $87,157 and Interest expenses on convertible notes $20,868 due to decrease in convertible notes as the result conversion to equity.

Liquidity and Capital Resources

The following table provides selected financial data about our company as of March 31, 2021 and December 31, 2020, respectively.





Working Capital



                       March 31,       December 31,
                          2021             2020           Change          %
Current Assets        $     71,582     $     69,3634     $   2,219        3.20 %
Current Liabilities   $  3,102,560         3,139,998       (37,438 )      1.19 %
                      $ (3,030,978 )      (3,070,635 )   $ (39,657 )     (1.29 )%

Our working capital deficit increased as of March 31,2021, compared to December 31, 2020 due mainly to the accrual of interest on various convertible and promissory during the first quarter.





Cash Flows



                                            Three Months Ended
                                                 March 31,
                                            2021          2020         Change           %

Cash Flows used in Operating Activities $ (17,781 ) $ (69,152 ) $ (51,371 ) (74.29 )% Cash Flows used in Investing Activities

                 $       -             -
Cash Flows provided by Financing
Activities                                $  20,000        69,488       (49,488 )      (71.22 )%
Net Change in Cash During Period          $   2,219           336         1,883        560.42 %





         20

  Table of Contents

Cash Flow from Operating Activities

During the three months ended March 31, 2021, net cash used in operating activities was $17,781 compared to $69,153 during the three months ended March 31, 2020.

The net cash used in operating activities of $17,781 for the three months ended March 31, 2021 was attributed to a net loss of $61,571 offset by depreciation and amortization $29,483, decrease in derivative liability of $71,743, decrease in accounts payable and accrued expenses of $4,232 and increase in accrued interest of $18,537.

The net cash used in operating activities of $69,152 for the three months ended March 31, 2020 was attributed to a net loss of $165,148 offset by depreciation and amortization $28,407, decrease in prepaid interest and increase 30,590 in accounts payable and accrued expenses of $31,473.

Cash Flow from Investing Activities

The Company did not use any funds for investing activities during the three months ended March 31, 2021 and March 31, 2020.

Cash Flow from Financing Activities

During the three months ended March 31, 2021, net cash provided by financing activities was $20,000 compared to $69,488 during the three months ended March 31, 2020.

Net cash from financing activities for the three months period March 31, 2021, attributed to proceeds from advances from related party.

Net cash from financing activities for the three months period March 31, 2020, attributed to proceeds from issuance of convertible promissory notes.

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, 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.






         21

  Table of Contents

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.

© Edgar Online, source Glimpses