I have never seen a valuation done like that - here are some facts. The company is insolvent according to the most recent 10-Q.
Assets = $243,887
Liabilities = $11,295,579
Revenue = $0
Notes Payable = $3,795,125
In Subsequent Events we find:
More toxic financing:
"Parabellum, as amended on June 18, 2020, for an additional funding of $700,000, which was received on July 2, 2020.
On July 2, 2020, the Company and Power Up Lending Group entered into a security purchase agreement for a 10% Convertible Promissory Note in the aggregate principal of $53,000 due on January 2, 2021. The conversion price is equal to the Variable Conversion price which is defined as 61% of the Market Price for the lowest two trading dates during a fifteen-day trading period ending on the latest complete trading date prior to the Conversion date.
On August 5, 2020, the Company and Adar, Alef, LLC entered into a security purchase agreement for a 8% Convertible Note in the aggregate principal of $150,000due on August 5, 2021. The note can be converted at any time after the issue date. The conversion price is equal to 55% of lowest trading price for the twenty prior trading days prior to the conversion."
Adar and Power Up are two notorious toxic lenders - real companies don't use toxic financing.
IG