NOTE 15 - COMMITMENTS Lease Commitments The Company determines if an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. Lease expense for variable lease components are recognized when the obligation is probable. Operating lease right of use (ROU) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease payments are recognized as lease expense on a straight-line basis over the lease term. The Company primarily leases buildings (real estate) which are classified as operating leases. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As an implicit interest rate is not readily determinable in the Companys leases, the incremental borrowing rate is used based on the information available at commencement date in determining the present value of lease payments. The lease term for all of the Companys leases includes the non-cancellable period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Options for lease renewals have been excluded from the lease term (and lease liability) for the majority of the Companys leases as the reasonably certain threshold is not met. Lease payments included in the measurement of the lease liability are comprised of fixed payments, variable payments that depend on index or rate, and amounts probable to be payable under the exercise of the Company option to purchase the underlying asset if reasonably certain. Variable lease payments not dependent on a rate or index associated with the Companys leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed as probable. Variable lease payments are presented as operating expenses in the Companys income statement in the same line item as expense arising from fixed lease payments. As of and during the year ended December 31, 2020, management determined that there were no variable lease costs. Right of Use Asset In connection with the Bluwire acquisition, the Company recognized a right of use asset and liability of $303,071. The Company used an effective borrowing rate of 13% within the calculation. The lease agreement matures in August 2021. Minimum rental payments in 2020 and 2021 are $276,756 and $55,328, respectively, and the imputed interest is $29,013. Operating Leases The Company and its subsidiaries have various short-term leases that mature in 2020. Other Commitments The Company has a significant contract with an independent contractor third party company which plays a critical role to the ongoing operations of the Company. The contract is for an initial period of five years for which can be cancelled upon six months notice and payment of all outstanding fees. The minimum monthly payment is $35,000 for which additional amounts are to be reimbursed for expenses, etc. During the year ended December 31, 2019, the Company paid $476,037 under the contract to which an additional $142,037 was payable as of December 31, 2019. The Company relies upon the third party for obtaining financing, targeting acquisitions, general corporate guidance, financial reporting, etc. See Note 10 for discussion regarding issuances of Series A and common stock to the third party. Contingencies  Auctus Fund Management (Auctus) vs. 12 ReTech Corporation. Auctus Filed suit in August 2019 claiming breach of contract on a convertible promissory note dated April 25, 2018, which had a remaining principal balance of nearly $40,000. Auctus claimed damages totaling over $482,000. The Company had entered into a settlement agreement with Auctus that required the Company to make a cash payment of $117,000 and which was dependent on the Company receiving funding from a foreign investor. That investment did not occur, and the Company was unable to perform. Upon information and belief, management believes that Auctus will at some point re-institute that lawsuit. Management has reserved on its financial statements a sum in excess of $482,000 in regards to this claim. To the best of managements knowledge, Auctus has not taken other actions.  Bellridge Capital (Bellridge) vs 12 ReTech Corporation. Bellridge claims that the Company is in default of two of its convertible promissory notes, dated September 14, 2018 and October 17, 2018, with a combined remaining principal balance of $117,000 due to Bellridge, for not having sufficient common share reserves to satisfy Bellridges conversion requirements. The Company has not reserved any specific amounts in regards to this claim, as management believes that Bellridges claims may later be able to be settled for cash or by providing a larger common share reserve. To the best of managements knowledge, Bellridge has not taken other actions.  Garden Concessions LLC (Garden) vs Bluwire Group LLC (Bluwire Group) and 12 ReTech Corporation. Garden agreed to provide $300,000 in new funding to Bluwire Group under certain terms and conditions. On October 7, 2019, Bluwire Group and the Company agreed to those terms, subject to certain disbursement stipulations provided by the Company. No funds have ever been disbursed by Garden to Bluwire Group nor to the Company. On April 9, 2020, the Company received a demand letter from Garden, which was promptly answered by the Company, as no loan from Garden was ever consummated. To the best of managements knowledge, Garden has not taken other actions. See Note 9.  J&amp;S Properties (J&amp;S) vs 12 ReTech Corporation. A cause of action was filed by J&amp;S on February 20, 2020 against the Company in the state of Utah, for a failure to make lease payments on a lease that was never executed by the Company, but rather was executed by Emotion Apparel, Inc., a California corporation, prior to the Companys acquisition of Emotion Apparel, Inc and subsequent divestiture. At no time did the Company make any payments to J&amp;S, nor agree to guarantee any payments to nor or have any other involvement with J&amp;S. Therefore, it is managements belief that this cause it meritless, and that the State of Utah lacks jurisdiction, as 12 ReTech does not itself do business in the state of Utah. The Company has retained counsel in this matter, who has communicated to counsel for J&amp;S.  RedWire Group, LLC (RedWire Group) filed for bankruptcy under Chapter 11 subsection V on March 6, 2020, and the case in ongoing. The Company has funded the initial costs, as well as some ongoing storage costs for RedWire Group equipment. The Company plans to liquidate the equipment and some other assets to pay creditors.  Leider Enterprises (Leider) vs. Bluwire Sun LLC (Bluwire Sun). Leider filed suit in Palm Beach County, Florida, on May 1, 2010 against Bluwire Sun, alleging a failure by Bluwire Sun to make certain payments to Leider in the amount of at least $15,000, for product delivered to various locations not owned by Bluwire Sun. Management does not believe that this matter is accurate nor material but has retained counsel to represent its interests.  Samantha Sisca (Sisca) was the Seller of the membership interests of Social Decay LLC d/b/a Social Sunday (Social) to the Company. The Company may have claims and/or causes of actions against Sisca for misrepresentation, breach of contract, and other claims. On April 15, 2020, Sisca terminated her employment with the Company. Management has not determined the extent of its claims, nor what actions are in the best interests of shareholders.