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EX-32 - Global Fiber Technologies, Inc.ex322.htm
EX-32 - Global Fiber Technologies, Inc.ex321.htm
EX-31 - Global Fiber Technologies, Inc.ex312.htm
EX-31 - Global Fiber Technologies, Inc.ex311.htm

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  
For the quarterly period ended September 30, 2017  
  or  
[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  
For the transition period from   to    
Commission File Number 000-52047  
ECO TEK 360 INC.
(Exact name of registrant as specified in its charter)
Nevada   11-3746201
(State or other jurisdiction of incorporation or organization)   (IRS Employer Identification No.)
50 Division Street, Suite 501, Somerville, New Jersey 08876
(Address of principal executive offices) (Zip Code)
(973) 291-8900
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
[X] YES [  ] NO
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
  [X] YES [  ] NO
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company) Smaller reporting company [X]
      Emerging growth company [  ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [  ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
  [  ] YES [X] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.

  [  ] YES [  ] NO
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
18,738,877 common shares issued and outstanding as of November 13, 2017.
                                           
  
 

 

 

 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION 4
Item 1.   Financial Statements 4
Item 2.   Management's Discussion and Analysis of Financial Condition or Plan of Operation 15
Item 3.   Quantitative and Qualitative Disclosures About Market Risk 19
Item 4.   Controls and Procedures 19
PART II - OTHER INFORMATION 19
Item 1.   Legal Proceedings 19
Item 1A.   Risk Factors 20
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds 20
Item 3.   Defaults Upon Senior Securities 20
Item 4.   Mine Safety Disclosures 20
Item 5.   Other Information 20
Item 6.   Exhibits 20
SIGNATURES 22

 

  
 

 

PART I - FINANCIAL INFORMATION

Item 1.Financial Statements

 

 

 

 

 

 

 

  
 

 

ECO TEK 360, INC. and Subsidiaries

Condensed Consolidated Balance Sheets

 

   September 30, 2017  December 31, 2016
    Unaudited    * 
 ASSETS          
 Current Assets          
    Cash and cash equivalents  $—     $36,208 
    Prepaid interest and deposits   3,333    21,622 
    Loan and interest receivable   8,436    —   
       Total Current Assets   11,769    57,830 
           
 Property and equipment, net   1,588    1,873 
 TOTAL ASSETS  $13,357   $59,703 
           
 LIABILITIES AND STOCKHOLDERS’ DEFICIT          
 Current Liabilities          
    Bank indebtedness  $435   $—   
    Accounts payable and accrued liabilities   486,373    338,520 
    Accrued compensation   476,250    413,250 
    Unsecured notes and accrued interest payable   168,910    149,539 
    Convertible notes and accrued interest - related party   58,500    55,500 
    Advances from related parties   15,569    39,048 
    Related party loans and accrued interest   221,279    289,741 
    Current liabilities from discontinued operations   84,281    84,281 
       Total Current Liabilities   1,511,597    1,369,879 
           
 Commitments and Contingencies   —      —   
           
 Stockholders’ Deficit          
 Preferred stock, Class B, $0.001 par value, 1,000,000 shares authorized, 200,000 shares issued and outstanding   200    200 
   Common stock  $0.001 par value, 400,000,000 shares authorized, 18,738,877 and 19,209,161 shares issued          
    and outstanding, 1,451,166 and  871,166 issuable as of September 30, 2017 and December 31, 2016, respectively   20,190    20,080 
 Additional paid-in capital   29,022,257    28,410,437 
 Stock subscription receivable   (10,000)   (10,000)
 Accumulated deficit   (30,530,887)   (29,730,893)
 Stockholders' deficit   (1,498,240)   (1,310,176)
           
 TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT  $13,357   $59,703 
           

 

*Derived from audited financial statements

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 4 
 

ECO TEK 360, INC. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2017  2016  2017  2016
             
REVENUE  $—     $18,750   $—     $18,750 
                     
OPERATING EXPENSES                    
General and administrative   28,856    146,220    383,726    290,387 
Consulting fees share expense   —      21,258    8,915    359,438 
Stock based compensation   —      —      492,815    50,000 
Gain on extinguishment of debt - related party   —      —      (130,859)   —   
      Total Operating Expenses   28,856    167,478    754,597    699,825 
                     
LOSS FROM OPERATIONS   (28,856)   (148,728)   (754,597)   (681,075)
                     
OTHER EXPENSE                    
 Interest expense and financing costs   9,294    51,500    33,451    117,266 
 Interest expense - related parties   2,602    —      11,946    —   
      Total other expense   11,896    51,500    45,397    117,266 
                     
Profit (loss) from continuing operations   (40,752)   (200,228)   (799,994)   (798,341)
Discontinued operations   —      635,764    —      635,764 
Provision for income taxes   —      —      —      —   
                     
NET PROFIT (LOSS)  $(40,752)  $435,536   $(799,994)  $(162,577)
                     
Net profit (loss) per share from continuing operations  $(0.00)  $(0.01)  $(0.04)  $(0.04)
Net profit (loss) per share from discontinued operations  $—     $0.03   $—     $0.03 
Net profit (loss) per share  $(0.00)  $0.02   $(0.04)  $(0.01)
                     
Weighted average common shares outstanding   19,032,355    19,209,161    19,164,491    18,683,965 
                     

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 5 
 

ECO TEK 360, INC. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

   Nine Months Ended
   September 30,
   2017  2016
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss  $(799,994)  $(162,577)
Net income from discontinued operations, net of taxes and minority interest   —      (635,764)
Net loss from continuing operations   (799,994)   (798,341)
Adjustments to reconcile net income (loss) to net cash from operating activities:          
   Gain on debt extinguishment - related party   (130,859)   —   
   Depreciation   285    —   
   Amortization of debt discount   21,622    —   
   Stock based compensation expense   492,815    50,000 
   Stock issued for services   8,915    359,438 
Changes in operating assets and liabilities:          
   Accounts payable and accrued expenses   223,449    3,500 
   Accrued interest   23,775    225,266 
   Prepaid interest and deposits   (3,333)   —   
Net cash used in operating activities   (163,325)   (160,137)
           
CASH FLOWS FROM INVESTING ACTIVITIES          
   Loans and interest receivable   (20,000)   —   
Net cash used in investing activities   (20,000)   —   
           
CASH FLOWS FROM FINANCING ACTIVITIES          
   Advances from related party   —      265,000 
   Proceeds from Related party loans   160,650    —   
   Proceeds from unsecured notes   10,000    —   
   Repayment of related party advance   (23,533)   (97,844)
Net cash provided by financing activities   147,117    167,156 
           
Net decrease in cash and cash equivalents   (36,208)   7,019 
Cash and cash equivalents - beginning of period   36,208    32,989 
Cash and cash equivalents - end of period  $—     $40,008 
           
Discontinued activities   —      —   
           
Supplemental Cash Flow Disclosures          
   Cash paid for interest  $—     $—   
   Cash paid for income taxes  $—     $—   
           
Non-Cash Investing and Financing Activity:          
   Related party loans converted to equity  $106,541   $—   
   Reduction of loans receivable, related party for payment  of an accrued liability  $12,106   $—   
           

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 6 
 

 

ECO TEK 360, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017

 

 

NOTE 1 – DESCRIPTION OF BUSINESS


Eco Tek 360, Inc. ("the Company") was incorporated in Nevada on March 25, 2005. As of September 30, 2017 and December 31, 2016, the Company had 400,000,000 shares of authorized common stock.

During the second quarter, 2014 the Company formed Leading Edge Fashions, LLC of which it controls 51%. Effective December 31, 2014 the Company's Board of Directors determined it was in the best interest of the Company to discontinue the operations of Leading Edge Fashions, LLC.

The Company created a new limited liability company, Pure361, LLC ("Pure361") in May 2015 for the purpose of operating the portion of the 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. The 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.

The Company 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 the Company and True Beauty, LLC (the company that controls the EMME® trademark) terminated the license agreement. PFI has had no operations to date.

Basis of Presentation: Unaudited Interim Financial Information

The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all of the normal recurring adjustments necessary to present fairly the financial position and results of operations as of and for the periods presented. The interim results are not necessarily indicative of the results to be expected for the full year or any future period.

 

Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Company believes that the disclosures are adequate to make the interim information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto included in the Company's Report on Form 10-K filed on March 31, 2017 for the years ended December 31, 2016 and 2015.

 

Going Concern

The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles, which contemplates continuation of the Company as a going concern. The Company has an accumulated deficit of $30,530,887 and $29,730,893 as of September 30, 2017 and December 31, 2016, respectively, which include losses of $799,994 and $162,577 for the nine months ended September 30, 2017 and 2016, respectively.  Consequently, the aforementioned items raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are issued.

 

The Company's ability to continue as a going concern is dependent upon its ability to repay or settle its current indebtedness, acquire an operating business and raise capital through equity and debt financing or other means on desirable terms. If the Company is unable to obtain additional funds when they are required or if the funds cannot be obtained on favorable terms, management may be required to restructure the Company or cease operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

 7 
 

 

NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The accompanying consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiary, Trident Merchant Group, Inc., Leading Edge Fashion, LLC which is 51% owned, and Pure361, LLC which is 51% owned.  All significant intercompany accounts and transactions have been eliminated. 

 

Reclassifications

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported consolidated net (loss).

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and investments in money market funds. The Company considers all highly-liquid instruments with an original maturity of 90 days or less at the time of purchase to be cash equivalents.

    

Equipment

 

Property and equipment are stated at cost. Costs of replacements and major improvements are capitalized, and maintenance and repairs are charged to operations as incurred. Depreciation expense is provided primarily by the straight-line method over the estimated useful lives of the assets which is seven years.

 

Prepaid interest and deposits

 

Prepaid interest and deposits consist of debt discounts, and amounts paid for deposits on property, plant and equipment. Prepaid interest is amortized over the life of the related liability.

 

Revenue Recognition

 

Revenue for the women's fashion division will be recognized at the point-of-sale for retail store sales, net of estimated customer returns. Revenue is recognized at the completion of a job or service for the consulting division. Revenue is presented on a net basis and does not include any tax assessed by a governmental or municipal authority. Payment for merchandise at stores and through the Company's direct-to-consumer channel will be tendered by cash, check, credit card, debit card or gift card. Therefore, the Company's need to collect outstanding accounts receivable for its retail and direct-to-consumer channel is negligible and mainly results from returned checks or unauthorized credit card transactions. The Company maintains an allowance for doubtful accounts for its consulting service accounts receivable, which management reviews on a regular basis and believes is sufficient to cover potential credit losses and billing adjustments. Deposits for consulting services are recognized as a sale upon completion of service.

 

The Company accounts for a gift card transaction by recording a liability at the time the gift card is issued to the customer in exchange for consideration from the customer. A liability is established and remains on the Company's books until the card is redeemed by the customer, at which time the Company records the redemption of the card for merchandise as a sale or when it is determined the likelihood of redemption is remote, based on historical redemption patterns. Revenues attributable to gift card liabilities relieved after the likelihood of redemption becomes remote are included in sales and are not material.

 

Sales Return Reserve

 

The Company records a reserve for estimated product returns where the sale has occurred during the period reported, but the return is likely to occur subsequent to the period reported and may otherwise be considered in-transit. The reserve for estimated in-transit product returns is based on the Company's most recent historical return trends. If the actual return rate or experience is materially higher than the Company's estimate, additional sales returns would be recorded in the future.

 

Income Taxes

 8 
 

Income taxes are accounted for under the asset and liability method as stipulated by ASC 740 "Income Taxes." Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized by the use of a valuation allowance. A valuation allowance is applied when in management's view it is more likely than not that such deferred tax asset will be unable to be utilized.

 

The Company adopted certain provisions under ASC Topic 740, which provide interpretative guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Effective with the Company's adoption of these provisions, interest related to the unrecognized tax benefits is recognized in the financial statements as a component of income taxes.

 

In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimated. As of December 31, 2016 and 2015, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. The Company's tax returns are subject to examination by the federal and state tax authorities for the years ended 2005 through 2016.

 

Impairment or Disposal of Long-Lived Assets

 

ASC Topic 360 (formerly FASB issued Statement No. 144), "Accounting for the Impairment or Disposal of Long-Lived Assets" ("FAS 144"), clarifies the accounting for the impairment of long-lived assets and for long-lived assets to be disposed of, including the disposal of business segments and major lines of business.  Long-lived assets are reviewed when facts and circumstances indicate that the carrying value of the asset may not be recoverable.  When necessary, impaired assets are written down to their estimated fair value based on the best information available. No impairment was necessary as of September 30, 2017 or September 30, 2016.

 

Stock-based Compensation

 

We account for stock-based awards at fair value on the date of grant, and recognize compensation over the service-period that they are expected to vest. We estimate the fair value of stock options and stock purchase warrants using the Black-Scholes option pricing model. The estimated value of the portion of a stock-based award that is ultimately expected to vest, taking into consideration estimated forfeitures, is recognized as expense over the requisite service periods. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time, of other comparative securities, equal to the weighted average life of the options. The estimate of stock awards that will ultimately vest requires judgment, and to the extent that actual forfeitures differ from estimated forfeitures, such differences are accounted for as a cumulative adjustment to compensation expenses and recorded in the period that estimates are revised.

 

Use of Accounting 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 the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the valuation of common stock and options issued as stock based compensation.

 

Fair Value

 

FASB ASC 820, Fair Value Measurements and Disclosures ("ASC 820") establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 9 
 

 

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

 

Level 1Quoted market prices for identical assets or liabilities in active markets or observable inputs;

Level 2Significant other observable inputs that can be corroborated by observable market data; and

Level 3Significant unobservable inputs that cannot be corroborated by observable market data.

 

The carrying amounts of cash, accrued compensation, accounts payable and other liabilities, accrued interest payable, and short-term portion of notes payable approximate fair value because of the short-term nature of these items.

 

Concentration of Credit Risk

 

The carrying value of short-term financial instruments, including cash, restricted cash, trade accounts receivable, accounts payable, accrued expenses and short-term debt, approximates the fair value of these instruments. These financial instruments generally expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market.  The Company maintains cash balances at financial institutions that are insured by the FDIC.  At September 30, 2017, and December 31, 2016, the Company had no amounts in excess of the FDIC limit.

  

NOTE 3 – CAPITAL STOCK

 

Preferred Stock

 

The Company has designated a "Class B Convertible Preferred Stock" (the "Class B Preferred").  The number of authorized shares totals 1,000,000 and the par value is $.001 per share.  The Class B Preferred shareholders vote together with the common stock as a single class.  The holders of Class B Preferred are entitled to receive all notices relating to voting as are required to be given to the holders of the Common Stock.  The holders of shares of Class B Preferred shall be entitled to 10,000 votes per share.  The Class B Preferred Stock will have the rights to liquidation as all classes of the Common Stock of the Company.  The Class B Preferred stockholders are entitled to receive non-cumulative dividends at the rate of 8% per annum, and are accrued daily.  The Class B Preferred Stock shall be redeemed by the Corporation for 100% of the original purchase price plus the amount of cash dividends accrued on the earlier of 6 months from the date of issuance, or the date that the Corporation received its funding from any outside source in conjunction with a merger, reverse merger or any change of control.  In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, the holders of the Class B Preferred Stock shall be entitled to receive, prior and in preference to any distribution of any assets of the Corporation to the holders of the Common Stock, the amount of $.035 per share plus any and all accrued but unpaid dividends.

During the fourth quarter, 2011, 200,000 shares of the Series B Preferred Stock were issued to a related party for reimbursement of $7,500 of legal and accounting fees paid on behalf of the Company.

 

Common Stock

 

As of September 30, 2017 and December 31, 2016, the Company had 18,738,877 and 19,209,161 shares of its $0.001 par value common stock issued and outstanding, respectively.   In addition, as of September 30, 2017, and December 31, 2016, the Company had 1,451,666 and 871,666 shares of common stock issuable, respectively.

   

In February 2016, the Company issued 50,000 shares of its common stock at a value of $1.00 per share for $50,000 to a board director for payment of services.

 

In March 2016, the Company issued 250,000 shares of its common stock at a value of $1.00 per share for $250,000 in payment for consulting services.  In addition, the Company granted a warrant to the consultant to purchase 250,000 shares of common stock at $0.50 per share for a period of two years.  The fair value of these warrants at the time they were granted was approximately $170,000 and was calculated using the Black-Scholes-Merton model. During the nine months ended September 30, 2017, and 2016, $0 and $56,658 was expensed, respectively.

 10 
 

 

The following assumptions were used for the warrants granted in March 2016 are as follows:

 

Expected term at issuance   2 years      
Expected average volatility     70.71% to 141.42 %    
Expected dividend yield     -      
Risk-free interest rate   .70%– 1.64%      

 

The following table summarizes information relating to outstanding and exercisable stock warrants as of September 30, 2017:

 

Warrants Outstanding      Warrants Exercisable  
                           
Number of Shares      Weighted Average Remaining
Contractual life (in years)
     Weighted Average
Exercise Price
     Number of Shares        
  275,000     .621     $ 0.59       275,000          

 

In March 2016, the Company issued 50,000 shares of its common stock at a value of $1.00 per share for $50,000 as payment for consulting services.

 

In the nine month period ended September 30, 2016, the Company issued 200,000 shares of its common stock at a value of $1.00 per share, in conjunction with the extension of the maturity date of the $100,000 note.  $150,000 was amortized as of September 2016, and $50,000 is being amortized for the period ended August 31, 2017. The unamortized portion as of September 30, 2017 and December 31, 2016 was $0 and $21,622, respectively. Amortization expense for the nine months ended September 30, 2017, and 2016, was $21,622 and $18,919, respectively.

 

In March 2016, the Company issued 884,001 shares of its common stock at approximately $0.25 per share amounting to $250,000 to two individuals for monies received in 2015 from subscription agreements that were entered into with the Company in 2015.  115,100 shares remain issuable related to these subscription agreements as of September 30, 2017.

 

During the nine months ended September 30, 2017, the Company issued 29,716 common stock valued at $.30 per share for $8,885 of consulting services.

 

On February 14, 2017, the Chief Technical Officer resigned. On June 8, 2017, the Company authorized the cancellation of 500,000 shares held by the Chief Technical Officer. As of September 30, 2017 the shares were voluntarily returned, and were cancelled by the Company in August 2017.

 

Stock Options

 

In the nine months ended September 30, 2017 the Company granted 2,650,000 options to consultants, employees and management. One hundred thousand of those options had an exercise price of $.0001, and 250,000 options at an exercise price of $0.01 vested immediately and were valued at the fair value of the Company’s stock at the measurement date less the exercise price. The value of the options was $151,490 and recorded as stock based compensation. The other 2,300,000 of options vested immediately and the fair value of these options were calculated using the Black-Scholes-Merton model. The stock compensation expense related to these options for the nine months ended September 30, 2017 was $341,327.

 11 
 

The following assumptions were used for the options granted in the period ended September 30, 2017 are as follows:

 

    At September 30, 2017
Fair values     $0.17 - $0.45      
Exercise price     $0.17-$1.50      
Expected term at issuance   2 - 10 years      
Expected average volatility     75.93% to 85.41%      
Expected dividend yield     -      
Risk-free interest rate   1.23%– 2.45%      

  

NOTE 4 – NOTES PAYABLE

 

Unsecured Notes Payable

 

On November 25, 2014, the Company issued an unsecured promissory note to an individual in the amount of $100,000 at 10% interest and due on April 1, 2015. On April 1, 2016 the Company entered into a forbearance agreement.  The Company was granted an extension of the note through September 30, 2016 in consideration of 150,000 shares of common stock valued at $150,000 with interest accruing after March 29, 2016 at 12%.  The lender was issued an additional 50,000 shares valued at $50,000 to extend the note to August 31, 2017.  The note and accrued interest was $131,333 and $122,333 as of September 30, 2017, and December 31, 2016.  The initial extension fee was amortized ratably over the extension period of 180 days. The subsequent extension fee is amortized over the period of the extension. During the nine months ended September 30, 2017, and September 30, 2016, the amortization expense on the extension fees were $21,622, and $50,000, respectively. The note remains unpaid as of September 30, 2017 and is currently in default.

 

During the year ended December 31, 2016, the Company received two separate payments of $12,500, totaling $25,000, as secured notes. The notes are non-interest bearing, and have no terms of repayment. The balance of the notes was $25,000 as of September 30, 2017.

 

On December 12, 2016, the Company issued an unsecured promissory note to an investor. The note bears interest at 5% and matured on June 30, 2017. As of December 31, 2016, payments from the investor are $2,200. On January 11, 2017 the investor loaned an additional $5,000 related to the promissory note. The balance of this note plus accrued interest totals $7,468 as of September 30, 2017. The notes are currently unpaid and in default.

 

On March 14, 2017, the Company issued an unsecured promissory note to an investor in the amount of $5,000. The note bears interest at 4% and matures on March 14, 2018. The balance of this note plus interest totals $5,109 as of September 30, 2017.

 

Convertible Notes Payable

 

In August 2015, The Company issued an unsecured promissory note to an investor in the amount of $50,000, convertible to common stock at $1.00 per share.  The note bears an interest rate of 8% per annum and matured on August 8, 2016.  The note is currently unpaid and in default.  The note was also issued with a warrant for this investor to purchase 25,000 shares of common stock at $1.50 for a period of 2 years.  The fair value of these warrants was approximately $3,909 as of December 31, 2016 and was calculated using the Black-Scholes-Merton model. The note does not contain a beneficial conversion feature. The balance of this note plus accrued interest totals were $58,500 and $55,500 at September 30, 2017 and December 31, 2016, respectively.

 

NOTE 5 – DISCONTINUED OPERATIONS

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During 2014, the Company's Leading Edge Fashions, LLC retail businesses, of which it owned 51%, was classified as discontinued operations.  Based on the Company's strategy to allocate resources to its businesses relative to their growth potential and those with the greater right to win in the marketplace, the Company determined that this business did not align with the Company's long-term growth plans.

 

As of September 30, 2017, and December 31, 2016 current liabilities from discontinued operations includes $84,281 accounts payable. In July 2016, a loan payable from discontinued operations was converted to common stock, which resulted in a gain on the extinguishment of debt related to discontinued operations in the amount of $635,764.

 

NOTE 6 – RELATED PARTY TRANSACTIONS

 

During the nine months ended September 30, 2017, the Company repaid advances from related parties in the amount of $23,479. The President of the Company was owed $15,569 and $39,048 at September 30, 2017 and December 31, 2016, respectively. 

 

During 2016, the Company received loans from the CEO and a member of the board of directors totaling $284,900. In the nine months ended September 30, 2017, the Company received additional loans from these individuals in the amount of $160,650. The loans bear interest at 5% per annum and matured on June 30, 2017 and September 30, 2017. During the nine months ended September 30, 2017, $237,400 of the notes and interest was converted at approximately $0.40 for 580,000 common shares. The conversion of debt resulted in a gain on extinguishment of debt in the amount of $130,859. The balance of these loans plus accrued interest was $221,279 and $289,741 at September 30, 2017 and December 31, 2016, respectively. These loans are currently unpaid and are in default.

 

In March 2017, the Company loaned a related party $20,000. The loan bears interest at the rate of 5% per annum and has a term of six months. During the nine months ended September 30, 2017, $12,106 was repaid. As of September 30, 2017, an amount of $8,436 is receivable.

 

NOTE 7 – COMMITMENTS AND CONTINGENCIES

 

On March 15, 2015 the Company entered into a trademark license agreement with True Beauty, LLC which controls the trademark EMME.  EMME is a market pioneer and trusted voice of the "Full-Figured" market. Under this licensing agreement the Company has the right to design, produce and market the EMME® Activewear Collection.  On April 13, 2016, the agreement was amended regarding the term and minimum royalties.  The royalty expense was $38,500 for the nine months ended September 30, 2017. On June 5, 2017, the Company and True Beauty, LLC, entered into an agreement to terminate the agreement. The Company is scheduled to make twelve repayments totaling of $37,500 to resolve all amounts outstanding. As of September 30, 2017, $23,394 is outstanding.

 

As of the date of this filing, the Company is a party to three pending litigation matters.

One matter is entitled Randazzo LLC v. Avani Holdings LLC & Global Fashion Technologies, Inc.  This litigation was initiated by the plaintiff in order to evict Avani Holdings LLC from its rented premises in California and to recover unpaid rent.  ECTX does not operate out of the premises in question and has never signed any leases or other documents with the plaintiff.  A judgment of eviction was entered, but ECTX does not operate out of the premises in question and therefore did not appear in the matter to oppose the judgment of eviction.  The plaintiff is also seeking unpaid rent in the amount of $26,595.

The second matter is entitled Patricia Witthuhn v. Global Fashion Technologies, Inc.  This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to her employment with Avani Holdings LLC.  The Company never hired Ms. Witthuhn and never acquired Avani Holdings, LLC.  Consequently, there is no legitimate cause of action against the Company.  However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation.  The amount being sought by the plaintiff is approximately $15,000.

The third matter is entitled William Corso v. Global Fashion Technologies, Inc.  This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to his employment with Avani Holdings LLC.  The Company never hired Mr. Corso and never acquired Avani Holdings, LLC.  Consequently, there is no legitimate cause of action against the Company.  However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation.  The amount being sought by the plaintiff is approximately $40,000.

 13 
 

NOTE 8 – NET LOSS PER SHARE 

Potentially dilutive securities are excluded from the calculation of net loss per share when their effect would be anti-dilutive. For all periods presented in the consolidated financial statements, all potentially dilutive securities have been excluded from the diluted share calculations as they were anti-dilutive as a result of the net losses incurred for the respective periods. Accordingly, basic shares equal diluted shares for all periods presented.

 

Potentially dilutive securities were comprised of the following:  

 

    September 30,     December 31,
    2017     2016
Warrants     275,000       275,000
Options     2,650,000       -
Convertible notes payable, including accrued interest     50,000       50,000
Contingently issuable shares     -       -
      2,975,000       325,000

 

NOTE 9 – RECLASSIFICATION

 

For comparability purposes, certain figures for 2016 have been reclassified where appropriate to conform to the financial statement presentation used in 2017. These reclassifications had no effect on the reported net loss.

 

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Item 2.Management's Discussion and Analysis of Financial Condition or Plan of Operation

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 stated in United States Dollars (US$) and 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.

Unless otherwise specified in this quarterly report, all dollar amounts are expressed in United States dollars and all references to “common stock” refer to shares of our common stock.

As used in this quarterly report, the terms “we”, “us”, “our company”, mean Eco Tek 360, Inc. a Nevada corporation, and our wholly-owned subsidiary Progressive Fashions Inc., and our majority-owned subsidiary Pure361, LLC, unless otherwise indicated.

Corporate Overview 

Eco Tek 360, Inc. was incorporated in the State of Nevada on March 25, 2005 under the name "Premier Publishing Group, Inc." our fiscal year end is December 31. Our company's administrative address is 50 Division Street, Suite 501, Somerville, New Jersey 08876. Our telephone number is (973) 291-8900.

 

We are a development stage rejuvenation technology company which will be offering branded fabrics, apparel and uniforms to the corporate, hotel, hospital and military markets. 

 

Business of the Company

 

We are a development stage fiber rejuvenation technology company which will be 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. In addition, we will also be offering branded apparel into both online and brick and mortar environments.

 

The Women’s Apparel Segment 

On March 15, 2015 we entered into a trademark license agreement with True Beauty, LLC which controls the trademark EMME®. Under this licensing agreement we had the right to design, produce and market the EMME® Activewear Collection. We created a new wholly-owned subsidiary, Progressive Fashions Inc. in February 2016 for the purpose of designing, producing and marketing the EMME® Activewear Collection. However, On June 5, 2017 the Company and True Beauty, LLC (the company that controls the EMME® trademark) terminated the license agreement.

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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.  Pure361 has had no operations to date.

The Rejuvenated Cardboard Segment 

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

Trident Merchant Group, Inc. 

Trident Merchant Group, Inc. is an operating subsidiary which is a “value added” strategic advisory services company specializing in rendering expertise in the areas of capital planning and procurement, licensing and branding as well as financial engineering and restructuring of its client company’s balance sheet and going public process.  In 2017, Trident Merchant Group had limited operations.

 

Results of Operations

The following table provides selected financial data about our company for the period ended September 30, 2017 and the year ended December 31, 2016.

 

    September 30, 2017   December 31, 2016     Change     %
Cash and cash equivalents   $ -   $ 36,208   $ (36,208)     -100%
Prepaid interest   $ 3,333   $ 21,622   $ (18,289)     -85%
Loan and interest receivable   $ 8,436   $ -   $ 8,436     100%
Property and equipment   $ 1,588   $ 1,873   $ (285)     -15%
Total Assets   $ 13,357   $ 59,703   $ (46,346)     -78%
Total Liabilities   $ 1,511,597   $ 1,369,879   $ 141,718     10%
Stockholders’ Deficit   $ (1,498,240)   $ (1,310,176)   $ (188,064)     -14%

 

The following summary of our results of operations, for the three and nine months ended September 30, 2017, should be read in conjunction with our financial statements, as included in this Form 10-Q. 

Three months ending September 30, 2017 compared to three months ending September 30, 2016:

 

    Three Months Ended            
    September 30, 2017   September 30, 2016     Change     %
Revenue   $ -   $ 18,750   $ (18,750)     -100%
                         
Operating Expenses                        
General and administrative expenses     28,856     146,220     (117,364)     -80%
Consulting fees share expense     -     21,258     (21,258)     -100%
Loss from operations   $ (28,856)   $ (148,728)   $ 119,872     81%

 

 16 
 

For the three months ended September 30, 2017 we had revenue of $0 compared to revenue of $18,750 for the three months ended September 30, 2016.

 

For the three months ended September 30, 2017, we incurred $28,856 in general and administrative expenses, resulting in a loss from operations of $28,856. For the three months ended September 30, 2016, we incurred $146,220 in general and administrative expenses, and $21,258 consulting fees and option expense, resulting in a loss from operations of $148,728.

 

The decrease in general and administrative costs of $117,374 was primarily due to a decrease in salary expenses, legal fees, and other operating expenses. The decrease in consulting fees share expense of $21,258 was due to consulting fees paid with shares and options for the three months ended September 30, 2016, that did not reoccur.

 

Nine months ending September 30, 2017 compared to Nine months ending September 30, 2016:

 

    Nine Months Ended            
    September 30, 2017   September 30, 2016     Change     %
Revenue   $ -   $ 18,750   $ (18,750)     -100%
                         
Operating Expenses                        
General and administrative expenses     383,726     290,387     93,339     32%
Consulting fees share expense     8,915     359,438     (350,523)     -98%
Stock based compensation     492,815     50,000     442,815     886%
Gain on extinguishment of debt – related party     (130,859)     -     (130,859)     -100%
Loss from operations   $ (754,597)   $ (681,075)   $ (73,522)     -11%

 

For the nine months ended September 30, 2017 we had revenue of $0 compared to revenue of $18,750 for the nine months ended September 30, 2016.

 

For the nine months ended September 30, 2017, we incurred $383,726 in general and administrative expenses, $8,915 in consulting fees share expense, $492,915 in stock based compensation and $(130,859) gain on extinguishment of debt – related party, resulting in a loss from operations of $754,597. For the nine months ended September 30, 2016, we incurred $290,387 in general and administrative expenses, $359,438 in consulting fees share expense, and $50,000 in stock based compensation, resulting in a loss from operations of $681,075. The increase in general and administrative costs of $93,339 was primarily due to increases in professional fees in order to assist the Company in becoming current with the required filings with the Securities and Exchange Commissions.

 

The decrease in consulting fees share expense of $350,523 was primarily due to consulting fees paid with shares and options for the nine months ended September 30, 2016, that did not reoccur. Stock based compensation increased by $442,815 for the nine months ended September 30, 2017, primarily due to options granted to employees and management.

 

Gain on extinguishment of debt – related party resulted from a conversion of debt in the amount of $237,400 in exchange for 580,000 shares of the Company’s common stock and resulted in the gain of $130,859 during the nine months ended September 30, 2017. No such conversion took place during the nine months ended September 30, 2016.

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Liquidity and Capital Resources

The following table provides selected financial data about our company as of September 30, 2017 and December 31, 2016, respectively.

 

Working Capital

 

    September 30, 2017   December 31, 2016     Change     %
Current Assets   $ 11,769   $ 57,830   $ (46,061)     -80%
Current Liabilities   $ 1,511,597   $ 1,369,879   $ 141,718     10%
Working Capital   $ (1,499,828)   $ (1,312,049)   $ (187,779)     -14%
                           

 

Cash Flows

 

    Nine Months Ended  
    September 30, 2017     September 30, 2016  
Cash Flows used in Operating Activities   $ (163,325)     $ (160,137)  
Cash Flows used in Investing Activities     (20,000)       -  
Cash Flows from Financing Activities     147,117       167,156  
Net Increase (Decrease) in Cash During Period   $ (36,208)     $ 7,019  

 

As at September 30, 2017 our company’s cash balance was $0 and total assets were $13,357. As at December 31, 2016, our company’s cash balance was $36,208 and total assets were $59,703.

 

As at September 30, 2017, our company had total liabilities of $1,511,597, compared with total liabilities of $1,369,879 as at December 31, 2016.

 

As at September 30, 2017, our company had working capital deficiency of $1,499,828 compared with working capital deficiency of $1,312,049 as at December 31, 2016. The increase in working capital deficiency was primarily attributed to an increase in accounts payable and accrued liabilities, and an increase in accrued compensation.

 

Cash Flow from Operating Activities

 

During the nine months ended September 30, 2017, our company used $163,325 in cash from operating activities, compared to $160,137 cash used in operating activities during the nine months ended September 30, 2016. The cash used from operating activities for the nine months ended September 30, 2017 was attributed to a net loss of $799,994, gain on debt extinguishment of $130,859, prepaid interest of $3,333, offset by depreciation of $285, amortization of debt discount of $21,622, stock based compensation of $492,815, stock issued for services of $8,915, accounts payable and accrued liabilities of $223,449, and accrued interest of $23,775.

 

Cash Flow from Investing Activities

 

The company used $20,000 investing activities in the nine months ended September 30, 2017, from loans and interest receivable. The Company did not have any cash flows from investing activities for the nine months ended September 30, 2016.

 

Cash Flow from Financing Activities

 

Net cash from financing activities was $147,117 for the nine months ended September 30, 2017 compared to net cash from financing activities of $167,156 for the nine months ended September 30, 2016.

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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.

 

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.

The report of our auditors on our audited financial statements for the fiscal year ended December 31, 2016, 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.

 

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.

 

Item 3.Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 4.Controls and Procedures

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. 

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2017. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the three month period ended September 30, 2017 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.Legal Proceedings

As of the date of this filing, the Company is a party to three pending litigation matters. 

 19 
 

One matter is entitled Randazzo LLC v. Avani Holdings LLC & Global Fashion Technologies, Inc.  This litigation was initiated by the plaintiff in order to evict Avani Holdings LLC from its rented premises in California and to recover unpaid rent.  ECTX does not operate out of the premises in question and has never signed any leases or other documents with the plaintiff.  A judgment of eviction was entered, but ECTX does not operate out of the premises in question and therefore did not appear in the matter to oppose the judgment of eviction.  The plaintiff is also seeking unpaid rent in the amount of $26,595. 

The second matter is entitled Patricia Witthuhn v. Global Fashion Technologies, Inc.  This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to her employment with Avani Holdings LLC. The Company never hired Ms. Witthuhn and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation. The amount being sought by the plaintiff is approximately $15,000. 

The third matter is entitled William Corso v. Global Fashion Technologies, Inc.  This litigation was initiated by the plaintiff in order to collect wages allegedly due pursuant to his employment with Avani Holdings LLC. The Company never hired Mr. Corso and never acquired Avani Holdings, LLC. Consequently, there is no legitimate cause of action against the Company. However, due to cash flow constraints, the Company is unable to hire outside counsel for this litigation. The amount being sought by the plaintiff is approximately $40,000. 

Item 1A.Risk Factors

As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.Defaults Upon Senior Securities

We are in default with respect to a note issued to a related party that matured on August 16, 2016. The balance of this note plus accrued interest totaled $58,500 as of September 30, 2017. 

Item 4.Mine Safety Disclosures

Not Applicable.

Item 5.Other Information

 

None.

Item 6.Exhibits

The following exhibits are included as part of this report:

Exhibit Number  Description
(3) (i) Articles of Incorporation
(ii) Bylaws
3.1(i) Articles of Incorporation(1)
3.2(ii) By-Laws(2)
(31) Rule 13a-14(a)/15d-14(a) Certification
31.1 Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer

 

 20 
 

 

31.2 Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer
(32) Section 1350 Certification
32.1* Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer
32.2* Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer
101 Interactive Data Files
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

 

(1)                 Incorporated by reference to the Registration Statement filed with the Commission on November 29, 2005

(2)                 Incorporated by reference to Form 8-K filed with the Commission on February 22, 2017

 

* Filed herewith.  In addition, in accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.

**  XBRL 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.

 21 
 

 

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    ECO TEK 360, INC.
    (Registrant)
Dated:  November 13, 2017   /s/ Christopher Giordano
    Christopher Giordano
    President and Director
    (Principal Executive Officer)
     
Dated:  November 13, 2017   /s/ Paul Serbiak
    Paul Serbiak
    Chief Executive Officer and Director
    (Principal Financial Officer)
     

 

 

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