10-Q - NBND - Equibles

UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

FORM10-Q

(Mark One)

[X]	QUARTERLY<br> REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the period ended June 30, 2020

[ ]	TRANSITION<br> REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-55889

GLOBALDIVERSIFIED MARKETING GROUP INC.

(Exact name of registrant as specified in its charter)

Delaware	82-3707673
(State<br> or other jurisdiction of	(I.R.S.<br> Employer
incorporation<br> or organization)	Identification<br> No.)

4042 Austin Boulevard, Suite B

Island Park, New York 11558

(Address of principal executive offices) (zip code)

Registrant’s telephone number, including area code: 800-550-5996

Securities registered pursuant to Section 12(b) of the Act: None

Title<br> of each class	Trading<br> Symbol(s)	Name<br> of each exchange on which registered

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 every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 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, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large<br> accelerated filer	[ ]	Accelerated<br> filer	[ ]
Non-accelerated<br> filer	[ ]	Smaller<br> reporting company	[X]
		Emerging<br> growth company	[X]

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

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

Class	Outstanding<br> at August 7, 2020
Common<br> Stock, par value $0.0001	13,082,200

PART I – FINANCIAL INFORMATION

ITEM

FINANCIAL INFORMATION

GLOBALDIVERSIFIED MARKETING GROUP INC.

FINANCIALSTATEMENTS

JUNE30, 2020

GLOBALDIVERSIFIED MARKETING GROUP INC.

TABLEOF CONTENTS

JUNE30, 2020

Consolidated Balance Sheets as of June 30, 2020, and December 31, 2019	F-1
Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2020, and 2019	F-2
Consolidated Statement of Stockholders’ Deficit for the Three and Six Months Ended June 30, 2010 and 2019	F-3
Consolidated Statements of Cash Flows for the Three and Six months ended June 30, 2020, and 2019	F-4
Notes to the Consolidated Financial Statements	F-5<br> - F-9

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GlobalDiversified Marketing Group, Inc.

(Unaudited) Consolidated Balance Sheets

			December 31,
			2019
ASSETS
Current assets:
Cash and cash equivalents	72,093		$	22,291
Accounts receivable	106,114			52,284
Prepaid expenses	25,990			34,176
Inventory	203,779			224,375
Other assets	2,147			4,384
Total current assets	410,124			337,509
Property and equipment, net	1,667			1,945
Operating lease right of use assets	22,367			30,477
Other assets-security deposit	1,600			1,600
Total assets	435,758		$	371,531
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expense	306,318		$	332,059
Current portion of operating lease payable	20,517			20,517
Government loans payable	29,800			-
Loans payable	69,860			98,471
Total current liabilities	426,494			451,047
Government loans payable-long term	149,900
Long term liability- operating lease	5,844			15,732
Total liabilities	582,238			466,779
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, Series A .0001 par value, 1,000,000 shares authorized, 1,000 issued and outstanding	-			-
Common stock, 0.001 par value, 100,000,000 shares authorized; 13,070,200 and 13,010,200 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	1,361			1,301
Additional paid-in capital	26,218,509			78,169
Retained earnings deficit	(26,366,350	)		(174,718	)
Total stockholders’ equity	(146,480	)		(95,248	)
Total liabilities and equity	435,758		$	371,531

All values are in US Dollars.

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

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GlobalDiversified Marketing Group, Inc.

(Unaudited) Consolidated Statements of Operations

	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Sales, net	$	253,341		$	418,638		$	593,302		$	674,290
Cost of goods sold		192,917			288,044			364,775			473,463
Gross margin		60,424			130,594			228,527			200,827
Operating expenses:
Stock based compensation -related party		-			-			26,020,400			-
Payroll and taxes		56,095			63,663			118,508			127,274
Legal and professional fees		133,756			13,081			168,347			15,081
Rent		4,204			4,055			8,407			8,110
General and administrative		50,745			60,656			88,540			87,884
Total operating expenses		244,800			141,455			26,404,202			238,349
Income (loss) from operations		(184,376	)		(10,861	)		(26,175,675	)		(37,522	)
Other (expense)
Interest expense		(5,475	)		-			(15,958	)		(15,867	)
Total other (expense)		(5,475	)		-			(15,958	)		(15,867	)
Income (loss) before income taxes		(189,850	)		(10,861	)		(26,191,632	)		(53,389	)
Provision for income taxes (benefit)		-			-			-			-
Net loss		(189,850	)		(10,861	)		(26,191,632	)		(53,389	)
Basic and diluted earnings (loss) per common share	$	(0.01	)	$	(0.00	)	$	(2.01	)	$	(0.00	)
Weighted-average number of common shares outstanding:
Basic and diluted		13,070,200			13,113,936			13,040,200			13,237,935

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

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GlobalDiversified Marketing Group, Inc.

(Unaudited) Consolidated Statements of Changes in Stockholders’ Equity

For the Three and Six Months Ended June 30, 2020 and June 30, 2019

											Additional		Retained			Total
	Preferred Stock				Common Stock						Paid-in		Earnings			Stockholders’
	Shares		Value		Shares			Value			Capital		(Deficit)			Equity
Balance, December 31, 2018		-	$	-		13,340,200		$	1,334		$	77,966	$	(23,734	)	$	55,566
Private placement of common shares						40,000			4			36					40
Net income (loss)														(33,043	)		(33,043	)
Balance March 31, 2019		-	$	-		13,380,200		$	1,338		$	78,002	$	(56,777	)	$	22,563
Net income (loss)
														(20,346	)		(20,346	)
Private placement of common shares						90,000			9			81					90
Common shares returned by founders						(500,000	)		(50	)		50					-
Balance, June 30, 2019		-	$	-		12,970,200		$	1,297		$	131	$	(77,123	)	$	2,307
Balance December 31, 2019		-	$	-		13,010,200		$	1,301		$	78,169	$	(174,718	)	$	(95,248	)
Issuance of super voting preferred stock		1,000		-								26,020,400					26,020,400
Net income (loss)														(26,001,782	)		(26,001,782	)
Balance, March 31, 2020		1,000	$	-		13,010,200		$	1,301		$	26,098,569	$	(26,176,500	)	$	(76,630	)
Net income(loss)														(189,850	)		(189,850	)
Common stock issued for services						60,000			60			119,940					120,000
Balance, June 30, 2020		1,000	$	-		13,070,200		$	1,361		$	26,218,509	$	(26,366,350	)	$	(146,480	)

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

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GlobalDiversified Marketing Group, Inc.

(Unaudited) Consolidated Statements of Cash Flows

	Six Months			Six Months
	Ended			Ended
	June 30,			June 30,
	2020			2019
Cash flows from operating activities of continuing operations:
Net income (loss)	$	(26,191,632	)	$	(53,389	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation		278			278
Stock-based compensation -related party		26,020,400
Common stock issued for services		120,000
Changes in operating assets and liabilities:
Accounts receivable		(53,830	)		(35,725	)
Prepaid expenses		8,186			2,507
Right of use assets		8,110			(36,492	)
Inventory		20,596			302,179
Other assets		2,237
Operating lease payable		(9,888	)		31,514
Accounts payable and accrued expenses		(25,741	)		(229,957	)
Net cash provided by (used in) operating activities		(101,286	)		(19,085	)
Cash flows from investing activities		-			-
Cash flows from financing activities:
Increase (decrease) in loans payable, net		(28,612	)		16,533
Government loans		179,700			-
Issuances of common stock		-			130
Net cash provided by (used in) financing activities		151,088			16,663
Net increase (decrease) in cash and cash equivalents		49,802			(2,422	)
Cash and cash equivalents at beginning of period		22,291			21,515
Cash and cash equivalents at end of period	$	72,093		$	19,093
Supplemental disclosure of cash flow information:
Cash paid for interest	$	15,958		$	-
Cash paid for income taxes	$	-		$	-

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

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GLOBALDIVERSIFIED MARKETING GROUP INC.

NOTESTO THE (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS

FORTHE THREE AND SIX MONTHS JUNE 30, 2020 and 2019

NOTE1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

GLOBAL DIVERSIFIED MARKETING GROUP INC. (the “Company”), formerly known as Dense Forest Acquisition Corporation, was incorporated in Delaware on December 1, 2017, and changed its name on June 13, 2018, as part of a change in control. As part of the change in control, its then officers and directors resigned and contributed back to the Company 19,500,000 shares of the 20,000,000 outstanding shares of its common stock, and appointed new officers and directors. On June 14, 2018, the new management of the Company issued 12.500,000 shares of its common stock to Paul Adler, the then president of the Company.

On November 26, 2018, the Company effected the acquisition of Global Diversified Holdings, Inc. (“GDHI”), a private New York company owned by the Company’s president, with the issuance of 200 shares of the Company’s common stock in exchange for all of the outstanding shares of GDHI. GDHI became a wholly-owned subsidiary of the Company, and its activity for the periods presented are reflected in these unaudited consolidated financial statements along with the expenses of the Company.

Prior to the acquisition of GDHI, the Company had no business and no operations. Pursuant to the acquisition, the Company acquired the operations and business plan of GDHI, which imports and sells snack food products. For accounting purposes, GDHI is considered to be the acquirer, and the equity is presented as if the business combination had occurred on January 1, 2017.

COVID-19

On March 11, 2020, the World Health Organization (“WHO”) declared the COVID-19 outbreak to be a global pandemic. In addition to the devastating effects on human life, the pandemic is having a negative ripple effect on the global economy, leading to disruptions and volatility in the global financial markets. Most US states and many countries have issued policies intended to stop or slow the further spread of the disease.

COVID-19 and the U.S’s response to the pandemic are significantly affecting the economy. There are no comparable events that provide guidance as to the effect the COVID-19 pandemic may have, and, as a result, the ultimate effect of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the effects on the economy, the markets we serve, our business or our operations.

Basis of Presentation

The unaudited consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company has adopted a December 31 year-end.

Principles of Consolidation

The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash, accounts receivable from customers, accounts payable, and loans payable. The carrying amounts of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

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Use of 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 at the date of the balance sheet. Actual results could differ from those estimates.

Stock-Based Compensation

As of June 30, 2020, the Company has not issued any share-based payments to its employees. Under the modified prospective method, the Company uses, stock compensation expense includes compensation expense for all stock-based compensation awards granted, based on the grant-date estimated fair value.

NOTE1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

The Company considers all highly liquid investments with the original maturities of six months or less to be cash equivalents. On June 30, 2020, and December 31, 2019, the Company had $72,093 and $22,291 in cash, respectively.

Accounts Receivable

Accounts receivable are generated from sales of snack food products to retail outlets throughout the United States. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment and current creditworthiness, as determined by review of their current credit information. The Company continuously monitors credit limits for its customers and maintains a provision for estimated credit losses based on its historical experience and any specific customer issues that have been identified. An allowance for doubtful; accounts is provided against accounts receivable for amounts management believes may be uncollectible. The Company historically has not had issues collecting on its accounts receivable from its customers. The Company factors certain of its receivables to improve its cash flow.

Bad debt expense for the six months ended June 30, 2020 and 2019 were $3,039 and $-0-, respectively. The allowance for doubtful accounts on June 30, 2020, and December 31, 2019, was $-0-.

Inventory

Inventory consists of snack food products and packaging supplies, stated at the lower of cost or market.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the assets. Maintenance, repairs, and renewals that do not materially add to the value of the equipment nor appreciably prolong its useful life are charged to expense as incurred.

Revenue Recognition

Beginning January 1, 2018, the Company implemented ASC 606, Revenue from Contracts with Customers. Although the new revenue standard is expected to have an immaterial impact, if any, on our ongoing net income, we did implement changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, ongoing contract review requirements, and gathering of information provided for disclosures.

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The Company recognizes revenue from product sales or services rendered when control of the promised goods are transferred to our clients in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this core principle we apply the following five steps: identify the contract with the client, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenues when or as the Company satisfies a performance obligation.

Advertising and Marketing Costs

The Company’s policy regarding advertising and marketing is to record the expense when incurred. The Company incurred advertising and marketing expenses of $17,381 and $4,839 during the six months ended June 30, 2020, and 2019, respectively.

Impairment of Long-Lived Assets

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

The Company’s wholly-owned subsidiary, with the consent of its stockholder, had elected to be taxed as an S Corporation under the provisions of the Internal Revenue Code. Instead of paying federal corporate income taxes, the stockholder(s) of an S Corporation are taxed individually on their proportionate share of the Company’s taxable income. Therefore, prior to the business combination discussed above, the Company had made no provision for income taxes. Effective with the business combination, the wholly-owned subsidiary became a C-corporation, and the loss incurred in 2018 for the period as a C-corporation approximated $270,000. See Note 7. The Company’s income tax returns are open for examination for up to the past six years under the statute of limitations. There are no tax returns currently under examination.

Comprehensive Income

The Company has which established standards for reporting and display of comprehensive income, its components, and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’ Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income.

Basic Income (Loss) Per Share

Basic income (loss) per share has been calculated based on the weighted average number of shares of common stock outstanding during the period.

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Recent Accounting Pronouncements

Adoption of ASC 842 - On January 1, 2019, we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC 842, which requires the recognition of the right-of-use assets and related operating and finance lease liabilities on the balance sheet. As permitted by ASC 842, we elected the adoption date of January 1, 2019, which is the date of initial application. As a result, the consolidated balance sheet prior to January 1, 2019, was not restated, continues to be reported under ASC Topic 840, Leases, or ASC 840, which did not require the recognition of operating lease liabilities on the balance sheet, and is not comparative. Under ASC 842, all leases are required to be recorded on the balance sheet and are classified as either operating leases or finance leases. The lease classification affects the expense recognition in the income statement. Operating lease charges are recorded entirely in operating expenses. Finance lease charges are split, where amortization of the right-of-use asset is recorded in operating expenses and an implied interest component is recorded in interest expense. The expense recognition for operating leases and finance leases under ASC 842 is substantially consistent with ASC 840. As a result, there is no significant difference in our results of operations presented in our consolidated income statement for each period presented.

We adopted ASC 842 using a modified retrospective approach for all leases existing on January 1, 2019. The adoption of ASC 842 had a substantial impact on our balance sheet. The most significant impact was the recognition of the operating lease right-of-use asset and the liability for operating leases. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and we recorded an adjustment of $44,602 to operating lease right-of-use assets and the related lease liability. The lease liability is based on the present value of the remaining minimum lease payments, determined under ASC 840, discounted using our secured incremental borrowing rate at the effective date of January 1, 2019, using the original lease term as the tenor. As permitted under ASC 842, we elected several practical expedients that permit us to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability.

NOTE2 – GOING CONCERN

As of June 30, 2020, the Company had cash and cash equivalents of $72,093 and an accumulated deficit of $26,366,650. Additionally on June 30, 2020 the Company had a working capital deficit of $16,370. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

On April 17, 2020, the Company received a forgivable loan in the amount $28,642 of under the Federal Payroll Protection Program (“PPP”). While the rules under the PPP are complex and continue to evolve and be clarified, generally the PPP loan will be forgiven if, during a certain measuring period that begins with the receipt of the loan, at least 75% of the loan is applied to employee payroll expense with the balance applied to rent and utilities and the recipient employer has employees equal to 90% of the number of employees it had prior to receipt of the loan. Management believes it will be able to make the required certifications by November 15, 2020 and the PPP Loan will be forgiven. To the extent the PPP Loan is not forgiven, it is converted into a two year loan with an interest rate of 1% per annum,

On May 21, 2020, the Registrant received a loan from the Small Business Administration in the amount of $150,000 (the “SBA Loan”). The SBA Loan bears interest at 3.75% per annum and is payable over 30 years with all payments of principal and interest deferred for the first 12 months.

The PPP loan is being applied as required under the PPP Program and the SBA Loan is being used for general working capital. These loans have improved the Company’s liquidity and working capital.

The consolidated financials have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. If the Company is in fact unable to continue as a going concern, the shareholders may lose some or all of their investment in the Company.

NOTE3 – EQUITY

The Company has 100,000,000 shares of $.0001 par value common stock authorized. The Company has 13,070,200 and 13,010,000 shares of common stock issued and outstanding as of June 30, 2020, and December 31, 2019, respectively. During the six month period ended June 30, 2020 the Company issued 60,000 common shares to a consultant and recorded a charge to legal and professional fees of $120,000.

The Company has 20,000,000 shares of $.0001 par value preferred stock authorized. On February 24, 2020, the Company filed a Certificate of Designation for a class of preferred stock designated Class A Super Voting Preferred Stock (“A Stock”). There are 1,000,000 shares of A Stock designated. Each share of such stock shall vote with the common stock and have 100,000 votes. A Stock has no conversion, dividend, or liquidation rights. Accordingly, the holders of A Stock will, by reason of their voting power, be able to control the affairs of the Company. The Company has issued 1,000 shares of A Stock to Paul Adler, the company’s Chief Executive Officer, and majority shareholder giving him effective voting control over the Registrant’s affairs for the foreseeable future.

As a result of the issuance of super-voting rights enabling him to vote 100,000,000 shares, Mr. Adler has effective voting control of approximately 99% of the Company. In conjunction with the issuance of these 1,000 preferred shares, the Company recorded stock compensation expense, related party of $26,020,400 for the six months ended June 30, 2020.

NOTE4 – RELATED PARTY TRANSACTIONS

During the six months ended June 30, 2020, and 2019, the Company incurred wages of $111,911 and $94,500 respectively, related to services provided to it by its executive officer. Additionally, during the six months ended June 30, 2020, the Company’s CEO was awarded super-voting A Stock-see Note 3. Capital Stock

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NOTE5 – COMMITMENTS AND CONTINGENCIES

The Company entered into a 60-month lease agreement on October 1, 2016, to rent office space. The lease requires monthly payments of $1,600 for the first 24 months and after that increases by 3% each year, and contains one five year renewal option. Rental expenses under this lease for the six months ended June 30, 2020, and 2019 were $4,203 and $4,055 respectively. The lease also required an advance payment of $1,600 for the last month of rent as well as a $1,600 security deposit. Future minimum lease payments due under this operating lease, including renewal periods, are as follows:

Year ended December 31, 2020	$	22,367
Year ended December 31, 2021		5,844
Total minimum lease payments	$	28,211

NOTE6 – LOANS PAYABLE

The Company had loans outstanding at June 30, 2020, and December 31, 2019 as follows:

Short Term

	June 30, 2020		Dec. 31, 2019
Loan Builder (a)	$	60,700	$	86,184
Government loan PPP Plan (b)		29,800		-
Credit Line - Blue Vine (a)		8,980		12,287
Total loans payable	$	99,680	$	98,471
(a)	Represents<br> notes payable from factoring with varying rates of interest and fees, and no set minimum monthly payments
---	---
(b)	On<br> April 17, 2020, the Company received a forgivable loan in the amount $28,642 of under the Federal Payroll Protection Program<br> (“PPP”). While the rules under the PPP are complex and continue to evolve and be clarified, generally the PPP<br> loan will be forgiven if, during a certain measuring period that begins with the receipt of the loan, at least 75% of the<br> loan is applied to employee payroll expense with the balance applied to rent and utilities and the recipient employer has<br> employees equal to 90% of the number of employees it had prior to receipt of the loan. Management believes it will be able<br> to make the required certifications by November 15, 2020 and the PPP Loan will be forgiven. To the extent the PPP Loan<br> is not forgiven, it is converted into a two-year loan with an interest rate of 1% per annum,

Long Term

As of June 30, 2020 the Company had $149,900 in long term loans outstanding compared to $-0- as of December 31, 2019. On May 21, 2020, the Company received a loan from the Small Business Administration of $150,000 (the “SBA Loan”). The SBA Loan bears interest at 3.75% per annum and is payable over 30 years with all payments of principal and interest deferred for the first 12 months.

NOTE7 – INCOME TAXES

For the period ended June 30, 2020, the Company has incurred net losses and, therefore, has no tax liability. The net deferred tax asset generated by the loss carry-forward has been fully reserved.

The provision for Federal income tax consists of the following at June 30, 2020, and December 31, 2019:

	2020		2019
Federal income tax benefit attributable to:
Current Operations	$	0	$	6,900
Less: valuation allowance		0		(6,900	)
Net provision for Federal income taxes	$	0	$	0

NOTE8 – CONCENTRATIONS

The Company does a significant amount of its total business with 4 customers, as follows for the six months ended June 30, 2020, and 2019 (percentage of total sales of $593,302 and $674,290 respectively):


Customer A	35	%	29	%
Customer B	24	%	25	%
Customer C	17	%	25	%
Customer D	10	%	19	%

NOTE9 – SUBSEQUENT EVENTS

On July 30, 2020 the company entered into a service agreement with a website and social media consultant and issued 12,000 shares as partial payment for their services.

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ITEM2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company has one wholly-owned subsidiary, Global Diversified Holdings Inc., through which it conducts all its operations.

RecentDevelopments

On May 21, 2020, the Registrant received a loan from the Small Business Administration of $150,000 (the “SBA Loan”). The SBA Loan bears interest at 3.75% per annum and is payable over 30 years with all payments of principal and interest deferred for the first 12 months.

These loans helped improve the Company’s liquidity and reliance on factoring during the CURRENT PERIOD.

Discussionof the Three and Six Month Periods Ended June 30, 2020, and the Period Ended June 30, 2019

Revenuesand Cost of Sales

Sales for the three months ended June 30, 2020, were $253,341 compared to $418,638 for the same three month period ended June 30, 2019, a decrease of $165,297. This decrease in the 2020 period is directly attributable to the impact of COVID-19 on the US economy and our customers. Sales for the six months ended June 30, 2020, were $593,3012 compared to $674,290 for the same six month period ended June 30, 2019, a decrease of $80,988. Our sales level had been trending higher in our first quarter ended March 31, 2020 prior to the onset on COVID -19, however, there can be no assurance that we will be able to achieve our historic sales level in the immediate future.

For the six months ended June 30, 2020, we had four customers that represented 86% of our business, compared to 98% for the same four customers during the six months ended June 30, 2019. The loss of any these customers could have a material adverse impact on our business.

Our gross operating margin which is calculated by subtracting the cost of sales from revenue was $60,424 for the three months ended June 30, 2020, compared to $130,594 for the same three-month period ended June 30, 2019, a decrease of $70,170. This decrease is attributable to lower sales levels in 2020. Our gross margin as a percentage of sales was 23.9% in the three months ended June 30, 2020 compared to 31.1% in the same 2019 period.

Our gross operating margin was $228,527 for the six months ended June 30, 2020, compared to $200,827 for the same three-month period ended June 30, 2019, an increase of $27,700. This increase in operating gross margin is attributable to our product mix in 2020. Our gross margin as a percentage of sales was 38.5% in the six months ended June 30, 2020 compared to 29.8% in the same 2019 period. Our gross margin percentage will vary due to the mix of our product sales. As we grow larger, we expect our normalized gross margin percentages to be in the range of 35-40%, although there can be no assurances, because our margins may be impacted by COVID-19.

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OperatingExpenses

Operating expenses for the six months ended were $26,404,202 for the six months ended June 30, 2020, compared to $244,800 during the six months ended June 30, 2019. The 2020 period includes a non-cash charge of $26,020,400 in stock-based compensation related to the issuance of the Series A Preferred Stock with super-voting rights to the Company’s chief executive officer, and a $120,000 non-cash charge to professional expenses due to the issuance of 60,000 restricted common shares to a consultant. See Note 3. Capital Stock. Excluding the charges of $26,020,400 and $120,000, operating expenses were $263,802 during the six months ended June 30, 2020, compared to $238,349, an increase of $24,453. This increase is primarily attributable to increased advertising expenses in the 2020 period to help support sales levels. Most of our operating expense are generally fixed, and we do not have the ability to reduce our operating expense proportionally with sales decrease in the future that may be caused by COVID-19.

OtherExpense

Other expense was $15,958 comprised entirely of interest expense for the six months ended June 30, 2020, compared to $15,867 during the same period ended June 30, 2019.

Netloss

Net loss for the six months ended June 30, 2020 was $26,191,632 compared to a net loss of $53,389 for the six months ended June 30, 2019. The loss for the 2020 period includes a charge of $26,020,400 related to the issuance of super voting preferred stock -see Footnote 3. Equity, and a charge of $120,000 relating to the issuance of 60,000 shares of common stock to a consultant. Excluding these items, the net loss for the 2020 period is $51,232 compared to a net loss of $53,389 for the six months ended June 30, 2019. The slight decrease in the net loss in the 2020 period compared to the same period in 2019 is attributable to increased gross margin of $27,700 in the six months ended June 30, 2020, offset by an increase of $25,453 in operating expense.

Liquidityand Capital Resources

Net cash used in operating activities was $101,286 during the six months ended June 30, 2020, compared to net cash used of $19,085 for the six months ended June 30, 2019, an increase of $82,201. The increase in net cash used in operating activities is attributable to net changes in operating assets and liabilities.

Net cash provided by financing activities during the six months ended June 30, 2020 was $192,093 compared to $19,093 during the same period six month period ended June 30, 2019. The increase is primarily attributable to the receipt of $178,642 in SBA financing due to COVID-19

Currently, the Company’s liquidity is provided by SBA COVID-19 loans and factoring. In the event COVID-19 results in continuing decreased sales and profits, our ability to obtain additional factoring for our receivables could be negatively impacted which could have a material adverse impact on our liquidity or our ability to remain as a going concern.

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Off-BalanceSheet Arrangements.

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

EquipmentFinancing

The Company has no existing equipment financing arrangements.

ITEM3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Information not required to be filed by Smaller reporting companies.

ITEM4. CONTROLS AND PROCEDURES.

Disclosuresand Procedures

Pursuant to Rules adopted by the Securities and Exchange Commission, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rules. This evaluation was done as of the end of the period covered by this report.

The Company is responsible for establishing and maintaining adequate internal control over financial reporting in accordance with the Rule 13a-15 of the Securities Exchange Act of 1934. The Company’s sole officer, its president, conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of the end of the period covered by this report under the supervision and with the participation of the Company’s principal executive officer (who is also the principal financial officer) based on the criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013). Based on this evaluation, management concluded that the Company’s internal control over financial reporting was effective as of the date of review, based on those criteria. A control system can provide only reasonably, not absolute, assurance that the objectives of the control system are met and no evaluation of controls can provide absolute assurance that all control issues have been detected.

Management is also responsible to maintain records accurately and fairly to reflect transactions and transactions are recorded, as necessary. The controls should provide reasonable assurance regarding the prevention of unauthorized acquisition or use of assets.

In the present case of the Company, management maintained sole control of all financial transactions and all assets. Since the president of the Company is in sole control of the financial transactions and assets management believes that its control reasonably and adequately addresses the risk of a misstatement in the financial reporting. Based upon that evaluation, the principal officer believes that the Company’s disclosure controls and procedures are effective in gathering, analyzing, and disclosing information needed to ensure that the information required to be disclosed by the Company in its periodic reports is recorded, summarized, and processed timely. The principal executive officer is directly involved in the day-to-day operations of the Company.

This Quarterly Report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Quarterly Report.

Changesin Internal Control Over Financial Reporting

There was no change in the Company’s internal control over financial reporting that was identified in connection with such evaluation that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PARTII–OTHER INFORMATION

ITEM1. LEGAL PROCEEDINGS

There are no legal proceedings against the GLOBAL DIVERSIFIED MARKETING GROUP INC. (the “Company”) and the Company is unaware of any such proceedings contemplated against it.

ITEM2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

For the period covered by this Report, the Company has not made any sales of equity securities not otherwise registered under the Securities Act.

ITEM3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM5. OTHER INFORMATION

(a) Not applicable.

(b) Item 407(c)(3) of Regulation S-K:

During the quarter covered by this Report, there have not been any material changes to the procedures by which security holders may recommend nominees to the Board of Directors.

ITEM6. EXHIBITS

31	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GLOBAL DIVERSIFIED MARKETING GROUP INC.
	By:	/s/ Paul Adler
		President
Dated:<br> August 11, 2020
	By:	/s/ Paul Adler
		Chief<br> Financial Officer
Dated:<br> August 11, 2020

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EXHIBIT31

CERTIFICATION PURSUANT TO SECTION 302

I, Paul Adler, the undersigned officer, certify that:

1. I have reviewed this Form 10-Q of Global Diversified Marketing Group, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:<br> August 11, 2020	/s/ Paul Adler
	President<br> and
	Chief<br> Financial Officer

EXHIBIT32

CERTIFICATION PURSUANT TO SECTION 906

Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, the undersigned officer of Global Diversified Marketing Group, Inc. (the “Company”), hereby certify to my knowledge that:

The Report on Form 10-Q for the period ended June 30, 2020 of the Company fully complies, in all material respects, with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and the information contained in the Report fairly represents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Paul Adler
President,<br> Director,
Chief<br> Financial Officer and
Principal<br> Accounting Officer

Date: August 11, 2020