Annual report [Section 13 and 15(d), not S-K Item 405]

REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

v3.26.1
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
12 Months Ended
Dec. 31, 2025
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS  
REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

NOTE 23 – REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS

 

As discussed in Note 2, in preparing the consolidated financial statements as of and for year ended December 31, 2025, we identified errors in our previously issued interim financial statements related to (i) improperly recording certain revenue and cost of sales transactions on a gross basis rather than on a net basis per the Company’s revenue recognition policy, and (ii) classification of costs between the Company and a consolidating subsidiary of which we do not own 100%. We concluded that they were not material to any previously issued financial statements. The identified errors impacted our previously financial statements as of and for the three and nine months ended September 30, 2025.

 

The following tables reflect the impact of the revision to the specific line items presented in our previously reported (a) condensed consolidated balance sheet as of September 30, 2025; (b) condensed consolidated statements of operations for the three and nine months ended September 30, 2025; (c) condensed consolidated statements of deficit for the three months ended September 30, 2025; and (d) condensed consolidated statement of cash flows for the nine months ended September 30, 2025.

CONDENSED CONSOLIDATED BALANCE SHEET

September 30, 2025

(Unaudited)

 

 

 

As Reported

 

 

Revision

 

 

As Revised

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash

 

$ 287,688

 

 

$ -

 

 

$ 287,688

 

Accounts receivable, net

 

 

194,442

 

 

 

(35,000 )

 

 

159,442

 

Grant receivable

 

 

761,515

 

 

 

-

 

 

 

761,515

 

Inventory

 

 

155,367

 

 

 

-

 

 

 

155,367

 

Prepaid expenses

 

 

63,164

 

 

 

-

 

 

 

63,164

 

Total current assets

 

 

1,462,176

 

 

 

(35,000 )

 

 

1,427,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

7,685

 

 

 

-

 

 

 

7,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Right to use assets

 

 

169,443

 

 

 

-

 

 

 

169,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets, net

 

 

3,011,833

 

 

 

-

 

 

 

3,011,833

 

Goodwill

 

 

2,840,400

 

 

 

-

 

 

 

2,840,400

 

Deposits, long term

 

 

41,936

 

 

 

-

 

 

 

41,936

 

Total other assets

 

 

5,894,169

 

 

 

-

 

 

 

5,894,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$ 7,533,473

 

 

 

(35,000 )

 

$ 7,498,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$ 12,400,939

 

 

 

2,828

 

 

$ 12,403,767

 

Deferred revenue, grant

 

 

56,590

 

 

 

-

 

 

 

56,590

 

Lease liability, short term

 

 

41,686

 

 

 

839

 

 

 

42,525

 

Notes payable, net of debt discount

 

 

1,547,853

 

 

 

-

 

 

 

1,547,853

 

Notes payable, related parties, net of debt discount

 

 

991,059

 

 

 

-

 

 

 

991,059

 

Total current liabilities

 

 

15,038,127

 

 

 

3,667

 

 

 

15,041,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Economic Injury Disaster loan, long term

 

 

69,803

 

 

 

-

 

 

 

69,803

 

Upfront purchase price liability

 

 

85,440

 

 

 

-

 

 

 

85,440

 

Royalty liability

 

 

317,577

 

 

 

-

 

 

 

317,577

 

Royalty obligation, net of discount

 

 

4,659,064

 

 

 

-

 

 

 

4,659,064

 

Lease liability, long term

 

 

127,757

 

 

 

(839 )

 

 

126,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

20,297,768

 

 

 

2,828

 

 

 

20,300,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit:

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, no par value, 600,000 authorized

 

 

 

 

 

 

 

 

 

 

 

 

Series A convertible preferred stock, no par value; 80,000 designated; 80,000 shares issued and outstanding as of September 30, 2025

 

 

16,000

 

 

 

-

 

 

 

16,000

 

Series B convertible preferred stock, no par value; 160,000 designated; 160,000 shares issued and outstanding as of September 30, 2025

 

 

5,616

 

 

 

-

 

 

 

5,616

 

Common stock, $0.001 par value; 750,000,000 shares authorized, 20,188,029  shares issued and outstanding as of September 30, 2025

 

 

20,188

 

 

 

-

 

 

 

20,188

 

Common stock subscribed

 

 

100,000

 

 

 

-

 

 

 

100,000

 

Common stock subscription receivable

 

 

-

 

 

 

(35,000 )

 

 

(35,000 )

Additional paid in capital

 

 

73,575,400

 

 

 

(1 )

 

 

73,575,399

 

Accumulated deficit

 

 

(87,201,843 )

 

 

1,070,785

 

 

 

(86,131,058 )

Total deficit attributable to BioCorRx Inc.

 

 

(13,484,639 )

 

 

1,035,784

 

 

 

(12,448,855 )

Non-controlling interest

 

 

720,344

 

 

 

(1,073,612 )

 

 

(353,268 )

Total deficit

 

 

(12,764,295 )

 

 

(37,828 )

 

 

(12,802,123 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and deficit

 

$ 7,533,473

 

 

 

(35,000 )

 

$ 7,498,473

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Three Months ended September 30, 2025

(Unaudited)

 

 

 

As Reported

 

 

Revision

 

 

As Revised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$ 635,224

 

 

$ (421,314 )

 

$ 213,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of implants and other costs

 

 

358,812

 

 

 

(358,812 )

 

 

-

 

Research and development

 

 

1,004,660

 

 

 

1

 

 

 

1,004,661

 

Selling, general and administrative

 

 

1,145,353

 

 

 

(242,759 )

 

 

902,594

 

Depreciation and amortization

 

 

71,986

 

 

 

1

 

 

 

71,987

 

Total operating expenses

 

 

2,580,811

 

 

 

(601,569 )

 

 

1,979,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(1,945,587 )

 

 

180,255

 

 

 

(1,765,332 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense - related parties

 

 

(195,515 )

 

 

27,995

 

 

 

(167,520 )

Interest expense, net

 

 

(29,672 )

 

 

(30,823 )

 

 

(60,495 )

Grant income

 

 

867,130

 

 

 

438,219

 

 

 

1,305,349

 

Change in fair value of upfront purchase price liability

 

 

(1,785 )

 

 

-

 

 

 

(1,785 )

Change in fair value of royalty liability

 

 

-

 

 

 

(180,257 )

 

 

(180,257 )

Other miscellaneous income

 

 

496,927

 

 

 

(438,219 )

 

 

58,708

 

Total other income

 

 

1,137,085

 

 

 

(183,085 )

 

 

954,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

 

(808,502 )

 

 

(2,830 )

 

 

(811,332 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(808,502 )

 

 

(2,830 )

 

 

(811,332 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

 

(1,109,371 )

 

 

1,073,612

 

 

 

(35,759 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to BioCorRx Inc.

 

$ (1,917,873 )

 

$ 1,070,782

 

 

$ (847,091 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$ (0.11 )

 

$ 0.06

 

 

$ (0.05 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding, basic and diluted

 

 

18,162,783

 

 

 

396,645

 

 

 

18,559,428

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

Nine Months ended September 30, 2025

(Unaudited)

 

 

 

As Reported

 

 

Revision

 

 

As Revised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$ 948,362

 

 

$ (421,315 )

 

$ 527,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of implants and other costs

 

 

358,813

 

 

 

(358,813 )

 

 

-

 

Research and development

 

 

1,463,439

 

 

 

1

 

 

 

1,463,440

 

Selling, general and administrative

 

 

3,254,760

 

 

 

(242,762 )

 

 

3,011,998

 

Depreciation and amortization

 

 

168,807

 

 

 

-

 

 

 

168,807

 

Total operating expenses

 

 

5,245,819

 

 

 

(601,574 )

 

 

4,644,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(4,297,457 )

 

 

180,259

 

 

 

(4,117,198 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense - related parties

 

 

(520,013 )

 

 

27,994

 

 

 

(492,019 )

Interest expense, net

 

 

(153,841 )

 

 

(30,823 )

 

 

(184,664 )

Loss on settlement of debt

 

 

(187,514 )

 

 

-

 

 

 

(187,514 )

Grant income

 

 

1,435,379

 

 

 

438,219

 

 

 

1,873,598

 

Change in fair value of upfront purchase price liability

 

 

(6,679 )

 

 

-

 

 

 

(6,679 )

Change in fair value of royalty liability

 

 

31,324

 

 

 

(180,257 )

 

 

(148,933 )

Other miscellaneous income

 

 

661,256

 

 

 

(438,219 )

 

 

223,037

 

Total other income (expense)

 

 

1,259,912

 

 

 

(183,086 )

 

 

1,076,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision for income taxes

 

 

(3,037,545 )

 

 

(2,827 )

 

 

(3,040,372 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(3,037,545 )

 

 

(2,827 )

 

 

(3,040,372 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

 

(955,156 )

 

 

1,073,612

 

 

 

118,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to BioCorRx Inc.

 

$ (3,992,701 )

 

$ 1,070,785

 

 

$ (2,921,916 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$ (0.24 )

 

$ 0.07

 

 

$ (0.17 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding, basic and diluted

 

 

16,901,306

 

 

 

-

 

 

 

16,901,306

 

CONDENSED CONSOLIDATED STATEMENT OF DEFICIT

Three Months ended September 30, 2025

 

As Reported

 

 

 

Series A

Convertible

Preferred stock

 

 

Series B

Convertible

Preferred stock

 

 

Common stock

 

 

Common

stock

 

 

Additional

Paid in

 

 

Accumulated

 

 

Non-

Controlling

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Subscribed

 

 

Capital

 

 

Deficit

 

 

Interest

 

 

Total

 

Balance, June 30, 2025 (unaudited)

 

 

80,000

 

 

$ 16,000

 

 

 

160,000

 

 

$ 5,616

 

 

 

17,281,886

 

 

$ 17,282

 

 

$ 100,000

 

 

$ 72,520,867

 

 

$ (85,283,967 )

 

$ (389,027 )

 

$ (13,013,229 )

Common stock issued for services rendered

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

276,331

 

 

 

276

 

 

 

-

 

 

 

103,599

 

 

 

-

 

 

 

-

 

 

 

103,875

 

Common stock issued in connection with subscription agreement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,000,000

 

 

 

2,000

 

 

 

-

 

 

 

698,000

 

 

 

-

 

 

 

-

 

 

 

700,000

 

Common stock issued in connection with conversion of promissory notes and accounts payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

582,511

 

 

 

583

 

 

 

-

 

 

 

211,918

 

 

 

-

 

 

 

-

 

 

 

212,501

 

Common stock issued in connection with exercise of options

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

47,301

 

 

 

47

 

 

 

-

 

 

 

15,703

 

 

 

-

 

 

 

-

 

 

 

15,750

 

Share-based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,060

 

 

 

-

 

 

 

-

 

 

 

16,060

 

Imputed interest for related party advances

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,253

 

 

 

-

 

 

 

-

 

 

 

9,253

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,917,876 )

 

 

1,109,371

 

 

 

(808,505 )

Balance, September 30, 2025 (unaudited)

 

 

80,000

 

 

$ 16,000

 

 

 

160,000

 

 

$ 5,616

 

 

 

20,188,029

 

 

$ 20,188

 

 

$ 100,000

 

 

$ 73,575,400

 

 

$ (87,201,843 )

 

$ 720,344

 

 

$ (12,764,295 )

 

Revision

 

 

 

Series A

Convertible

Preferred stock

 

 

Series B

Convertible

Preferred stock

 

 

Common stock

 

 

Common

stock

 

 

Subscription

 

 

Additional

Paid in

 

 

Accumulated

 

 

Non-

Controlling

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Subscribed

 

 

Receivable

 

 

Capital

 

 

Deficit

 

 

Interest

 

 

Total

 

Balance, June 30, 2025 (unaudited)

 

 

-

 

 

$ -

 

 

 

-

 

 

$ -

 

 

 

-

 

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

Common stock issued for services rendered

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

47,301

 

 

 

47

 

 

 

-

 

 

 

-

 

 

 

15,703

 

 

 

-

 

 

 

-

 

 

 

15,750

 

Common stock issued in connection with subscription agreement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(35,000 )

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(35,000 )

Common stock issued in connection with conversion of promissory notes and accounts payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1 )

 

 

-

 

 

 

-

 

 

 

(1 )

 Common stock issued in connection with exercise of options

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 -

 

 

 

 (47,301

 

 

 47

 

 

 

 -

 

 

 

 -

 

 

 

 (15,703

 

 

 -

 

 

 

 -

 

 

 

 (15,750

Share-based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Imputed interest for related party advances

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,070,785

 

 

 

(1,073,612 )

 

 

(2,827 )

Balance, September 30, 2025 (unaudited)

 

 

-

 

 

$ -

 

 

 

-

 

 

$ -

 

 

 

-

 

 

$ -

 

 

$ -

 

 

$ (35,000 )

 

$ (1 )

 

$ 1,070,785

 

 

$ (1,073,612 )

 

$ (37,828 )

As Revised

 

 

 

Series A

Convertible

Preferred stock

 

 

Series B

Convertible

Preferred stock

 

 

Common stock

 

 

Common

stock

 

 

Subscription

 

 

Additional

Paid in

 

 

Accumulated

 

 

Non-

Controlling

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Subscribed

 

 

Receivable

 

 

Capital

 

 

Deficit

 

 

Interest

 

 

Total

 

Balance, June 30, 2025 (unaudited)

 

 

-

 

 

$ 16,000

 

 

 

160,000

 

 

$ 5,616

 

 

 

17,281,886

 

 

$ 17,282

 

 

$ 100,000

 

 

$ -

 

 

$ 72,520,867

 

 

$ (85,283,967 )

 

$ (389,027 )

 

$ (13,013,229 )

Common stock issued for services rendered

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

323,632

 

 

 

323

 

 

 

-

 

 

 

-

 

 

 

119,302

 

 

 

-

 

 

 

-

 

 

 

119,625

 

Common stock issued in connection with subscription agreement

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,000,000

 

 

 

2,000

 

 

 

-

 

 

 

(35,000 )

 

 

698,000

 

 

 

-

 

 

 

-

 

 

 

665,000

 

Common stock issued in connection with conversion of promissory notes and accounts payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

582,511

 

 

 

583

 

 

 

-

 

 

 

-

 

 

 

211,917

 

 

 

-

 

 

 

-

 

 

 

212,500

 

Share-based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,060

 

 

 

-

 

 

 

-

 

 

 

16,060

 

Imputed interest for related party advances

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,253

 

 

 

-

 

 

 

-

 

 

 

9,253

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(847,091 )

 

 

35,759

 

 

 

(811,332 )

Balance, September 30, 2025 (unaudited)

 

 

-

 

 

$ 16,000

 

 

 

160,000

 

 

$ 5,616

 

 

 

20,188,029

 

 

$ 20,188

 

 

$ 100,000

 

 

$ (35,000 )

 

$ 73,575,399

 

 

$ (86,131,058 )

 

$ (353,268 )

 

$ (12,802,123 )

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Nine Months ended September 30, 2025

(Unaudited)

 

 

 

As Reported

 

 

Revision

 

 

As Revised

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Net loss

 

$ (3,037,545 )

 

$ (2,827 )

 

$ (3,040,372 )

Adjustments to reconcile net loss to cash flows used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

168,807

 

 

 

-

 

 

 

168,807

 

Amortization of discount on royalty obligation

 

 

355,662

 

 

 

-

 

 

 

355,662

 

Amortization of debt discount

 

 

53,861

 

 

 

-

 

 

 

53,861

 

Amortization of right-of-use asset

 

 

29,741

 

 

 

-

 

 

 

29,741

 

Loss on settlement of debt

 

 

187,514

 

 

 

-

 

 

 

187,514

 

Change in fair value of upfront purchase price liability

 

 

6,679

 

 

 

-

 

 

 

6,679

 

Change in fair value of royalty liability

 

 

(31,324 )

 

 

180,257

 

 

 

148,933

 

Stock based compensation

 

 

241,346

 

 

 

201,498

 

 

 

442,844

 

Fair value of options issued

 

 

81,874

 

 

 

(81,874 )

 

 

-

 

Imputed interest for related party advances

 

 

28,067

 

 

 

-

 

 

 

28,067

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(194,442 )

 

 

35,000

 

 

 

(159,442 )

Grant receivable

 

 

(761,515 )

 

 

-

 

 

 

(761,515 )

Other receivable

 

 

(21,770 )

 

 

21,770

 

 

 

-

 

Inventory

 

 

-

 

 

 

(21,770 )

 

 

(21,770 )

Prepaid expenses

 

 

(33,201 )

 

 

-

 

 

 

(33,201 )

Accounts payable and accrued expenses

 

 

1,819,098

 

 

 

(281,304 )

 

 

1,537,794

 

Upfront purchase price liability

 

 

(313,680 )

 

 

-

 

 

 

(313,680 )

Lease liability

 

 

(29,741 )

 

 

-

 

 

 

(29,741 )

Net cash used in operating activities

 

 

(1,450,569 )

 

 

50,750

 

 

 

(1,399,819 )

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of common stock

 

 

15,750

 

 

 

(15,750 )

 

 

-

 

Proceeds from common stock subscription and royalty agreement

 

 

700,000

 

 

 

(35,000 )

 

 

665,000

 

Payment to Economic Injury Disaster loan

 

 

(1,226 )

 

 

-

 

 

 

(1,226 )

Payment of notes payable – related party

 

 

(7,000 )

 

 

(5,000 )

 

 

(12,000 )

Proceeds from notes payable – related party

 

 

942,700

 

 

 

5,000

 

 

 

947,700

 

Net cash provided by financing activities

 

 

1,650,224

 

 

 

(50,750 )

 

 

1,599,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in cash

 

 

199,655

 

 

 

-

 

 

 

199,655

 

Cash, beginning of period

 

 

88,033

 

 

 

-

 

 

 

88,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$ 287,688

 

 

$ -

 

 

$ 287,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$ 1,439

 

 

$ 602

 

 

$ 2,041

 

Taxes paid

 

$ -

 

 

$ -

 

 

$ -

 

Common stock issued in connection with conversion of promissory notes and accounts payable

 

$ 1,177,500

 

 

$ -

 

 

$ 1,177,500

 

Common stock issued in connection with exercise of warrants

 

$ 234

 

 

$ (234 )

 

$ -

 

Common stock issued for services rendered

 

$ 103,875

 

 

$ (103,875 )

 

$ -

 

Common stock issued in connection with APA (Note 4)

 

$ 153,500

 

 

$ -

 

 

$ 153,500

 

Warrants issued in connection with APA (Note 4)

 

$ 89,770

 

 

$ -

 

 

$ 89,770

 

Common stock issued in connection with issuance of promissory notes

 

$ 8,975

 

 

$ 27,825

 

 

$ 36,800