U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the fiscal year ended | |
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or | |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Name of Small Business Issuer in its charter)
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(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
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(Address of principal executive offices) |
Registrant's telephone number: (
Registrant's fax number: (757) 306-6092
______________________________________
Richard W. Jones, Esq.
Jones & Haley, P.C.
750 Hammond Drive, Building 12-100
Atlanta, Georgia 30328
(770) 804-0500
www.corplaw.net
Securities registered under Section 12(b) of the Act:
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Securities registered under Section 12(g) of the Act: Common Stock par value $0.001
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Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐
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 requirement for the past 90 days.
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).
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information incorporated by reference in Part III of the Form 10-K or any amendment to this Form 10-K.
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," and "smaller reporting company" in Rule 12b-2 of the Exchange Act:
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Large accelerated filer ☐ |
Accelerated filer ☐ |
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Smaller reporting company |
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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 ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12(b)-2 of the Exchange Act). Yes ☐ No
The aggregate market value of the 5,183,755 shares of common equity held by non-affiliates computed by reference to the average bid and ask price of $1.58 per share of the registrant's common stock (as reported on the OTCPINK operated by "The OTC Markets Group, Inc.") at which the common equity was last sold as of the last business day of its most recently completed second fiscal quarter (June 30, 2021) was approximately $
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. At February 11, 2022 the registrant had outstanding 29,271,755 shares of common stock, par value $0.001 per share.
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Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
In light of the risks and uncertainties inherent in all projected operational matters, the inclusion of forward-looking statements in this Form 10-K, should not be regarded as a representation by us or any other person that any of our objectives or plans will be achieved or that any of our operating expectations will be realized. Our revenues and results of operations are difficult to forecast and could differ materially from those projected in the forward-looking statements contained in this Form 10-K, as a result of certain risks and uncertainties including, but not limited to, our business reliance on third parties to provide us with technology, our ability to integrate and manage acquired technology, assets, companies and personnel, changes in market condition, the volatile and intensely competitive environment in the business sectors in which we operate, rapid technological change, and our dependence on key and scarce employees in a competitive market for skilled personnel. These factors should not be considered exhaustive; we undertake no obligation to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
PART I
For historical information, this report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve risks and uncertainties, including, among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking statements include, among others, those statements including the words "expects," "anticipates," "intends," "believes" and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances taking place after the date of this document.
ITEM 1. Business.
The Company
BioForce Nanosciences Holdings, Inc. ("BioForce" or the "Company") was previously in the business of manufacturing nano-particular measurement devices and molecular printers, but due to a lack of profitability, the subsidiary of the company that owned that technology filed for bankruptcy. That subsidiary and related technology was later bought out of bankruptcy by an unrelated third party. Subsequently, new management came into the Company to pursue a better business model and now the Company's mission is to become a leading provider of natural vitamins, minerals and other nutritional supplements, powders and beverages, formulated to promote a healthier lifestyle for active individuals in all age ranges. The Company private labels products with key distributors and manufacturing providers.
BioForce entered into the supplement business in or about 2015. These supplements, powders and beverages offer vitamins and minerals to complement a healthy intake of protein and carbohydrates for active individuals and participants in sports.
BioForce recently changed its business plan and it is in the process of establishing a dynamic marketing campaign to achieve brand awareness of its product offerings to drive business growth through sales of nutrition supplements to retailers, sporting goods retailers, supermarkets, mass merchandisers, and online. BioForce currently markets its products through social media and telemarketing. The Company plans to expand marketing efforts with a direct marketing and B2B (Business to Business) sales campaign, with the eventual expectation to expand throughout the entire United States.
The Company proactively seeks to expand its "BioForce Eclipse" nutritional powder for use into households throughout the U.S., and the Company will approach retail stores, including health food and sporting goods stores to create a vendor relationship. During this phase, the Company will continue to try to advance its social media platform with direct online and targeted advertisements to health conscience individuals.
Nutrition retailers, grocery stores, retail pharmacies, and online stores, like Amazon, will be important channels for the Company's Eclipse product-lines. In The USA, there are thousands of direct outlets like grocery stores, pharmacies, hospitals, department stores, medical clinics, surgery clinics, universities, nursing homes, prisons, and other facilities which are all targets of potential sales of the vitamin and mineral supplemental products.
The Company plans to offer its products for direct sales on its website at www.bioforceeclipse.com.
The approximate $33.0 billion vitamin and supplement manufacturing industry grew on average 2.5% annually between 2012 and 2021.
The Company will seek out retail sales opportunities with gyms, health clubs, and fitness centers with incentive base sales agreements based on volume of sales obtained.
Currently, the Company BioForce Eclipse, a private label brand powder supplements. The product is a mixture of amino acids, key vitamins, and other plant based proteins, essential to the physical well-being of the individual. Protein supplements are known to promote muscular growth, so athletes or others often take them as a dietary supplement to gain muscle mass.
Nutritional Products are made up of a wide range of products, which include supplements, meal replacement products, multivitamins, and convenience products. As these products have increased in popularity, more individuals have been attempting to get in optimal physical condition, wanting to use products that complement their lifestyles, exercise, or athletic regimen. BioForce's Management is aware of other potential products and will continue to evaluate these potential markets and possible new products lines.
BioForce entered into a market that has some reputable players, but has limited leadership. BioForce will work to get the product available through most retail channels, so that customers will see both convenience in purchasing the product, and convenience over having to take numerous different supplements. After BioForce launches its products into the sports nutrition supplement industry, it is anticipated that there will be other firms that will work to offer similar products. This fact magnifies the importance of BioForce's quality and its support of its products.
The initial marketing efforts will focus on the online stores, B2B sales, direct mail, industry trade shows, conventions, and affiliate marketing designed to educate prospective users and distributors, including retail channels, doctors and gyms. Less direct methods will include TV and radio advertising until such time as the Company's budget allows it to upgrade its marketing plan and to do so effectively.
BioForce Nanosciences Holdings, Inc. maintains an executive office in Virginia Beach, Virginia. All marketing, sales, and customer support will be managed from its Virginia Beach Office. Private labeling is done on a contractual basis unless an opportunity to vertically integrate production makes fiscal sense.
BioForce Nanosciences Holdings sells the BioForce Eclipse powder multivitamin and mineral supplement without non-compete and non-disclosure agreements. The Company currently private labels the powder through a manufacturer located in Virginia. The Company has a Supplier Agreement with this manufacturer that gives the Company non-exclusion rights to market the product. The distributor owns the rights to the formula for this product. If the Company can source product in a more cost-effective way without diminished quality, the Company would evaluate such opportunities when presented. Currently, the distributor who provides the private label powder provides "Consignment Terms," which allows us to only pay for the product when it is sold.
In addition to manufacturing the product, this private label vitamin distributor also offers custom labeling and packaging of the product. BioForce utilizes these services, and will seek out examples from other potential manufacturer and distributor of future products to ensure that the quality of work reflects the Company's standards for presentation and quality.
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The FDA has rules regarding the fitness for consumption of foods as well as vitamins and supplements sold to the public, and those laws apply to our product. However, our product does not require pre-clearance like a drug in order to be sold into the marketplace.
BioForce's management understands that similar competing products are available to the consumer, and customers may consider switching from BioForce Eclipse to a competitor's product. Manufacturers and distributors who provide private label services generally incentives larger orders, which the Company might not be financially able to provide. Management remains conscience of changes in the marketplace, its relationship with the Private Label manufacture distributor, and other risk associated with supply chain issues.
BioForce's dietary supplements and vitamins cannot take the place of a well-balanced diet. Some people believe that the ingestion of supplements, pills and beverages can make up for poor eating habits; but vitamin and mineral supplements don't offer a wellness solution. None of BioForces' products are approved by the FDA and are sold without doctors prescriptions through the Company's marketing channels.
The Company caters to the needs of customers with a focus on the elderly and athletes across numerous sports, ages, and economic backgrounds.
The Company plans to offer numerous products beyond nutritional supplement powder, but will only offer products that advance the BioForce product-line name, "BioForce Eclipse" (See Fig. 1-product labels).
The aging baby boomers, report regular use of multivitamin and multi-mineral supplements at a higher rate than other demographic group. Recent surveys have indicated that women, Caucasians, individuals with higher education levels, people with lower body mass indexes and people with higher physical activity levels were more likely to use supplements. These groups were also most likely to talk to a doctor about the need for supplements, because they knew about their benefits, they are subject to a higher risk of deficiencies, or had a family history of medical type issues.
Health conscience "Baby Boomers," sports participants, and other active individuals continue to extend their health education awareness. The industry's traditional focus on these groups is shifting to an ever-expanding group that includes recreational and lifestyle users, such as fitness enthusiasts, weekend athletes and gym-goers, of all ages.
BioForce will provide its consumer base with products that serve their health needs, and which add value even beyond their needs. The Company first introduced its multivitamin and mineral supplemental powder product, "BioForce Eclipse in December, 2014." With the introduction of this first product, BioForce advances the Company's name offering additional products that meet the standards for a healthy lifestyle. BioForce Eclipse is a private label branding produced by Body Align, LLC from a distributor located in Virginia, USA.
The Company had no customer during its 2020 and 2021 fiscal years. Customers are not required to purchase the product in the future and the Company's marketing plan is to broaden the Company's customer base.
The Company intends to increase its U.S. market share by offering new incentives and promotions to attract customers on trying its products. The Company intends to market a new biodegradable, recyclable container of its products to attract enviromentally conscience customers and to develop new markets. BioForce will evaluate the success of its marketing objectives and determine which marketing strategy provides the best results. As sale volumes increase, we expect that it will become necessary to hire sales associates.
The Company in May 2020 formed a wholly-owned subsidiary, Element Acquisition Corporation, a Wyoming corporation, with unlimited common shares authorized, par value $0.001. Element Acquisition Corporation was formed to pursue potential acquisitions in the media, entertainment, media technology and sports sectors. The Company on October 15, 2020 changed the name of its wholly-owned subsidiary Element Acquisition Corporation, a Wyoming corporation, to BioForce Nanosciences Holdings, Inc, a Wyoming corporation. On December 14, 2021, the Company changed the name of its wholly-owned subsidiary to Element Global, Inc.
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Figure 1- product labels
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Wholly-owned Subsidiary
On May 18, 2020, BioForce NanoSciences Holdings Inc. formed a wholly owned subsidiary, Element Acquisition Corporation, a Wyoming corporation, with unlimited shares authorized, and par value $0.001. Mr. Merle Ferguson and Mr. Richard Kaiser are Board of Directors of Element Acquisition Corporation.
On June 04, 2020, BioForce Nanosciences Holdings, Inc.' s wholly-owned subsidiary Element Acquisition Corporation, announced that it created an "Investment Committee" comprised of leading executives with extensive experience in the media, entertainment and sports sectors. The "Investment Committee" was established to oversee a strategy aimed at acquiring and investing in companies across these industries. Element Acquisition Corporation was formed to serve as a potential acquisition vehicle for these types of transactions.
The Company on October 15, 2020 changed the name of its wholly-owned subsidiary Element Acquisition Corporation, a Wyoming corporation, to BioForce Nanosciences Holdings, Inc, a Wyoming corporation. Management expects to use the wholly-owned subsidiary to redomicile the Company from a Nevada corporation to a Wyoming corporation.
On December 14, 2021, the Company changed the name of its wholly-owned subsidiary, BioForce Nanosciences Holdings, Inc., a Wyoming corporation, to its new name, Element Global, Inc.
Merger Cancellation
On July 14, 2020, BioForce Nanosciences Holdings, Inc. (BFNH) entered into Memorandum of Understanding ("MOU") with Element Global, Inc., a Utah Corporation which publicly trades under the symbol ELGL. BFNH intended to acquire 100% of ELGL, its subsidiaries and its assets on or before October 13, 2020.
On October 09, 2020, the Board of Directors at BioForce NanoSciences Holdings, Inc. cancelled and voided the July 14, 2020 "Memorandum of Understanding" (MOU) with Element Global, Inc. As a result of this action, BioForce Nanosciences Holdings, Inc.'s wholly-owned subsidiary, Element Acquisition Corporation, a Wyoming Corporation, accepted the resignation of Mr. Gagnon as its director, it dissolved the "Investment Committee "and removed its "Investment Committee members," Mr. LaViolette, Mr. Davis, Mr. Greenberg, Mr. Shapiro, Mr. Gagnon, and Mr. Scheffer.
Reverse Stock Split
On December 2, 2019, The Board of Directors of the Company unanimously approved an amendment to the Company's Articles of Incorporation in order to effect a plan of recapitalization that provides for a one-for-five (1-for-5) reverse stock split of our common stock. Pursuant to written resolutions, the shareholders of the Company voted to approve the proposal to authorize the reverse split. The reverse stock split took effect, after filing a Certificate of Amendment to the Articles of Incorporation with the Secretary of State of Nevada. The amended Articles of Incorporation did not change the authorized shares. The common and preferred shares have a par value of $0.001 per share. Based on the amended Articles of Incorporation the Company has 10,000,000 Series 'A' Preferred shares outstanding, and each share has voting and conversion rights so that one Series 'A' Preferred is equivalent 100 common shares (see Exhibit 3.2). Subsequently, the Series 'A' Preferred shares were retired, and as of the date of this filing there are no Series 'A' Preferred shares issued or outstanding.
Memorandum of Understanding ("MOU")
June 02, 2021, Bioforce Nanosciences Holdings, Inc. entered into another Memorandum of Understanding (MOU) with Element Global, Inc. (ELGL), a Utah Corporation. This MOU contemplates a proposed transaction between the entities that provides for BFNH to acquire all of the assets controlled by ELGL. The closing of the transaction is subject to due diligence and the execution of a definitive agreement.
Officer Appointments
On November 29, 2021, the Board of Directors (the “Board”) of BioForce Nanosciences Holdings, Inc. (the “Company”) appointed both Mr. Steve Gagnon and Mr. John LaViolette as Co-Chief Executive Officers (Co-CEOs), effective November 30, 2021. In addition, on November 29, 2021, the Board of Directors of BioForce Nanosciences Holdings, Inc. appointed Sasha Shapiro as President, effective November 30, 2021. On November 29, 2021, the Board of Directors accepted the resignation of Mr. Merle Ferguson as Chief Executive Officer and President, effective November 30, 2021. Mr. Ferguson remains Chairman of the Board of Director of BioForce Nanoscience, Inc. There were no disagreements, no arguments, no conflicts and no disputes with the Company’s officers, directors, auditors, and other professional service providers on his decision to step down as CEO and President.
The FDA has rules regarding the fitness for consumption of foods as well as vitamins and supplements sold to the public, and those laws apply to our product. However, our product does not require pre-clearance like a drug in order to be sold into the marketplace. These rules could change, however.
Employees
The Company has two full time employees, Mr. Merle Ferguson, its Chairman, and Mr. Richard Kaiser, its CFO and Secretary.
Transfer Agent
Our transfer agent is Transfer Online, Inc. whose address is 512 SE Salmon Street, Portland, Oregon 97214, and telephone number is (503) 227-2950, email info@transferonline.com.
Company Contact Information
Our principal executive offices are located at 2020 General Booth Blvd. Unit 230, Virginia Beach, Virginia 23454, telephone (757) 306-6090, website:www.bioforceeclipse.com, and email: info@bioforceeclipse.com.
ITEM 1A. Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information called for under this item.
ITEM 2. Properties.
The Company makes use of the office space of Yes International, which is owned and operated by Richard Kaiser, a Director and the Secretary of the Company. As a result, the Company neither rents nor owns any properties. The Company currently has no policy with respect to investments or interests in real estate, real estate mortgages or securities of, or interests in, persons primarily engaged in real estate activities.
ITEM 3. Legal Proceedings.
At this time, there are no material pending legal proceedings to which the Company is a party or as to which any of its property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.
ITEM 4. Mine Safety Disclosure- (Removed and Reserved).
Not applicable to this Company.
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PART II
ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our common stock has been traded on the OTCPINK since April 15, 2009, under the symbol "BFNH."
The following table sets forth the high and low bid prices for our common stock on the OTCPINK as reported by various market makers for 2021 and 2020. The quotations do not reflect adjustments for retail mark-ups, mark-downs, or commissions and may not necessarily reflect actual transactions.
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Low |
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2020 Quarter Ended: |
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March 31, 2020 |
$0.79 |
$0.79 |
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June 30, 2020 |
$2.00 |
$1.70 |
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September 30, 2020 |
$1.25 |
$1.25 |
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December 31, 2020 |
$0.44 |
$0.28 |
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2021 Quarter Ended: |
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March 31, 2021 |
$0.90 |
$0.90 |
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June 30, 2021 |
$1.665 |
$1.58 |
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September 30, 2021 |
$1.45 |
$0.76 |
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December 31, 2021 |
$1.20 |
$1.20 |
As of December 31, 2021, we were authorized to issue 900,000,000 shares of our common stock, of which 29,271,755 shares were outstanding, taking into account the one-for-five (1-for-5) reverse stock split effective February 28, 2020. Our shares of common stock are held by approximately 230 stockholders of record. The number of record holders was determined from the records of our transfer agent and does not include beneficial owners of our common stock whose shares are held in the names of various securities brokers, dealers, and registered clearing agencies.
Preferred Shares
In addition to our authorized common stock, BioForce Nanosciences Holdings, Inc. is authorized to issue 100,000,000 shares of preferred stock, par value at $0.001 per share. Based on the amended Articles of Incorporation the Company has 10,000,000 Series 'A' Preferred shares authorized and each share has voting and conversion rights of 100 common shares (see Exhibit 3.2). This leaves a balance of 90,000,000 "Blank Check" Preferred, with no shares issued or designated. On March 31, 2020, 2,000,000 shares were issued to two of the board of directors for compensation. On December 4, 2020, the two board of directors returned those shares, and they were cancelled. As of the date of this filing, there are no Series 'A' Preferred issued or outstanding. There is no trading market for our preferred stock.
Dividends
We have not paid or declared any dividends on our common stock, nor do we anticipate paying any cash dividends or other distributions on our common stock in the foreseeable future. Any future dividends will be declared at the discretion of our board of directors and will depend, among other things, on our earnings, if any, our financial requirements for future operations and growth, and other facts as our board of directors may then deem appropriate.
ITEM 6. Selected Financial Data.
Not applicable.
ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
THE FOLLOWING DISCUSSION SHOULD BE READ TOGETHER WITH THE INFORMATION CONTAINED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES INCLUDED ELSEWHERE IN THIS ANNUAL REPORT ON FORM 10-K.
The following discussion reflects the results of our operations. This discussion should be read in conjunction with the financial statements which are attached to this report. This discussion contains forward-looking statements, including statements regarding our expected financial position, business and financing plans. These statements involve risks and uncertainties. Our actual results could differ materially from the results described in or implied by these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report, particularly under the headings "Special Note Regarding Forward-Looking Statements."
Unless the context otherwise suggests, "we," "our," "us," and similar terms, as well as references to "BFNH" or "BioForce" all refer to BioForce Nanosciences Holdings, Inc. as of the date of this report.
Coronavirus Impact (COVID-19)
Due to the recent outbreak of the coronavirus reported in many countries worldwide, local and federal governments have issued travel advisories, canceled large scale public events and closed schools. In addition, companies have begun to cancel conferences and travel plans and require employees to work from home. Global financial markets have also experienced extreme volatility and disruptions to capital and credit markets.
Adverse events such as health-related concerns about working in our offices, the inability to travel, potential impact on our business partners and customers, and other matters affecting the general work and business environment could harm our business and delay the implementation of our business strategy.
Management is currently aware of the global and domestic issues arising from the Covid-19 pandemic and the possible direct and indirect effects on the Company's operations which could have a material adverse effect on the Company's current financial position, future results of operations, or liquidity, because its current operations are limited. However, investors should also be aware of factors, which includes the possibility of Covid-19 effects on operational status, could have a negative impact on the Company's prospects and the consistency of progress in the areas of revenue generation, liquidity, and generation of capital resources. These may include: (i) variations in revenue, (ii) possible inability to attract investors for its equity securities or otherwise raise adequate funds from any source should the company seek to do so, (iii) increased governmental regulation or significant changes in that regulation, (iv) increased competition, (v) unfavorable outcomes to litigation involving the Company or to which the Company may become a party in the future, and (vi) a very competitive and rapidly changing operating environment. The adverse events may also adversely impact our ability to raise capital or to continue as a going concern. We continue to monitor the recent outbreak of the coronavirus on our operations. The global economic slowdown and the other risks and uncertainties associated with the pandemic could have a material adverse effect on our business, financial condition, results of operations and growth prospects. In addition, to the extent the ongoing COVID-19 pandemic adversely affects the Company's business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties which the Company faces.
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Going Concern
On December 31, 2021, we had total assets of $11,145 and total liabilities of $873,008. In the absence of significant revenue and profits, we will be completely dependent on additional debt and equity financing. If we are unable to raise needed funds on acceptable terms, we will not be able to execute our business plan, develop or enhance existing services, take advantage of future opportunities, if any, or respond to competitive pressures or unanticipated requirements. If we do not obtain sufficient capital, we will not be able to continue operations.
As of December 31, 2021, BioForce had an accumulated deficit of $159,672,262, which included a net loss of $501,955 reported for the year ended December 31, 2021. Also, during the year ended December 31 2021, we used net cash of $77,772 for operating activities. These factors raise substantial doubt about our ability to continue as a going concern.
While we are attempting to generate revenues, our cash position may not be significant enough to support our daily operations. Management intends to raise additional funds by way of an offering of our debt or equity securities. Management believes that the actions presently being taken to further implement our business plan and generate revenues provide the opportunity for BioForce to continue as a going concern. While we believe in the viability of our strategy to generate revenues and in our ability to raise additional funds, we may not be successful.
Our ability to continue as a going concern is dependent upon our capability to raise additional funds and to further implement our business plan and generate revenues.
Results of Operations
Year Ended December 31, 2021 Compared to Year Ended December 31, 2020.
Revenues for the Company's year ended December 31, 2021 and December 31, 2020 totaled $-0- from the sales of its vitamin supplements.
Cost of Goods Sold for the year ended December 31, 2021 and December 31, 2020 totaled $-0- .. Company had -0- unit sales of the "BioForce Eclipse" supplement product in 2021 and 2020.
Gross margins for year ended December 2021 and 2020 was $-0- due to -0- units sold of the "BioForce Eclipse" supplement product.
Gross profit for the year ended December 31, 2021 and 2020 was $-0- due to -0- sales of the Company's vitamin supplements.
General and Administrative expenses for the year ended December 31, 2021 totaled $78,955 compared to $81,038 for December 31, 2020, primarily due to decreases in professional service fees.
Net Loss
Net loss for the years ended December 31, 2021 and 2020 were $501,955 and $158,408,555, respectively. The increase in loss was due to decreases in equity based compensation to the Company's two Board Members
Liquidity and Capital Resources:
As of December 31, 2021, our assets totaled $11,145, which consisted of $11,105 in cash and $40 in Prepaid Expenses. The Company's total liabilities were $873,008, which consisted of accounts payable and accrued expenses, accrued board of directors compensation and amounts due to related parties. As of December 31, 2021, the Company had an accumulated deficit of $159,672,262 and working capital deficit of $861,863.
The Company's significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. As indicated herein, we need capital for the implementation of our business plan, and we will need additional capital for continuing our operations. We do not have sufficient revenues to pay our operating expenses at this time. Unless the Company is able to raise working capital, it is likely that the Company will either have to cease operations or substantially change its methods of operations or change its business plan. For the next 12 months the Company has an oral commitment from its CEO to advance funds as necessary to meeting our operating requirement.
Investing Activities
Net cash used in investing activities was $0 for both calendar years ended December 31, 2021, and 2020.
Cash from Financing Activities
Net cash provided by financing activities was $49,012 for year ended December 31, 2021, and was $67,166 for year ended December 31, 2020.
Critical Accounting Policies
Our consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management's application of accounting policies. Critical accounting policies include revenue recognition and impairment of long-lived assets.
Revenue Recognition
In accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), revenues are recognized when control of the promised goods or services is 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: 1) Identify the contract with a client; (2) Identify the performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction price to performance obligations in the contract; and (5) Recognize revenues when or as the company satisfies a performance obligation.
We adopted this ASC on January 1, 2018. 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.
Stock-Based Compensation
We account for employee and non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock Compensation, which requires all share-based payments, including grants of stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.
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Recent Accounting Pronouncements
The Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements, including revenue recognition. The Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk.
Not applicable.
ITEM 8. Financial Statements and Supplementary Data.
The financial statements and related notes are included as part of this report as indexed in the appendix on page F-1, et seq.
ITEM 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosures.
There are no disagreements with the accountants on accounting and financial disclosures.
ITEM 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Annual Report on Form 10-K. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Based on our evaluation, our Principal Executive Officer and Principal Financial Officer, after considering the existence of material weaknesses identified, determined that our internal control over financial reporting disclosure controls and procedures were not effective as of December 31, 2021.
Evaluation of Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.
Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors, and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management, including our Principal Executive Officer and Principal Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2021. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control – Integrated Framework (2013).
We identified the following deficiencies which together constitute a material weakness in our assessment of the effectiveness of internal control over financial reporting as of December 31, 2021:
- The Company has inadequate segregation of duties within its cash disbursement control design.
- During the year ended December 31, 2021, the Company internally performed all aspects of its financial reporting process, including, but not limited to the underlying accounting records and the recording of journal entries and for the preparation of financial statements. This process was deficient, because these duties were performed often times by the same people, and therefore a lack of review was created over the financial reporting process that might result in a failure to detect errors in spreadsheets, calculations, or assumptions used to compile the financial statements and related disclosures as filed with the SEC. These control deficiencies could result in a material misstatement to our interim or annual financial statements that would not be prevented or detected.
It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control system, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
This annual 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 rules of the Securities and Exchange Commission that permit us to provide only management's report in this annual report.
We regularly review our system of internal control over financial reporting to ensure that we maintain an effective internal control environment. If deficiencies appear in our internal controls, management will make changes that address those deficiencies.
Changes in Internal Control Over Financial Reporting
There have been no changes in the Company's internal control over financial reporting that occurred during the year ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
ITEM 9B. Other Information.
Not applicable.
-7-
ITEM 10. Directors, Executive Officers and Corporate Governance.
The following table provides information concerning our officers and directors. All directors hold office until the next annual meeting of stockholders or until their successors have been elected and qualified.
|
NAME |
|
AGE |
|
POSITION |
|
Merle Ferguson |
|
74 |
|
CEO/President/Treasurer/Director |
|
Richard Kaiser |
|
57 |
|
CFO/Secretary/Director |
|
Steve Gagnon |
|
60 |
|
Co-CEO |
|
John LaViolette |
|
60 |
|
Co-CEO |
|
Sasha Shapiro |
|
59 |
|
President |
BIOGRAPHY
Mr. Ferguson became Chairman of the Board of the Company on July 8, 2013, and subsequently on December 1, 2016 he also became CEO and President of the Company. On November 29, 2021, the Board of Directors accepted the resignation of Mr. Merle Ferguson as Chief Executive Officer and President, effective November 30, 2021. Mr. Ferguson remains Chairman of the Board of Director of BioForce Nanoscience, Inc. Prior to that, he had no relationship with the Company. Mr. Ferguson attended Yakima Valley College from 1964-1966 with a major in forestry and a minor in Business Management. In April of 1966, he enlisted in the United States Marine Corps, serving two tours in Vietnam, and was honorably discharged in 1970. From January 12, 2010 to March, 19, 2019, Mr. Ferguson served as Chairman, Secretary, Treasurer and a majority shareholder of Predictive Technology Group, Inc., a company located in Salt Lake City, Utah, a biotech company involved in the manufacturing and marketing of products involving stem cells and genetic therapeutics. Predictive Technology Group, Inc.'s stock trades under the symbol PRED. From January 2009 to the present, Mr. Ferguson has served as Chairman, President, CEO, CFO and majority owner of Element Global, Inc., located in Virginia Beach, Virginia. Element Global provides mining, media and energy services. The stock of Element Global trades on the OTC Markets Pink, no information market. Beginning in May, 2014, Mr. Ferguson also became Chairman and President of Element Global. From January 2002 to 2014, Mr. Ferguson served as an Officer and Director of Gold Rock. Since 2014, he has also served as President, Chairman and CEO of Gold Rock Holdings, Inc, ("Gold Rock"), located in Virginia Beach, Virginia, which manufactures homes using rare earth substances and recycled tires. Gold Rock Holdings, Inc. is a stock that is traded on the over-the-counter market. As of November 2018, Mr. Ferguson has also served as a Chairman and CEO of Bravo Multinational, Inc., a public company formed under the laws of Wyoming with its headquarters located in Virginia Beach, VA. Bravo is in the business of buying and selling casino gaming equipment. The Board reviewed Mr. Ferguson's background and it considers him as qualified to fill this position, due to his extensive business experience and work with public companies.
On or about July 1, 2013, Mr. Kaiser became the Registrant's Secretary and Director. Since December 1, 2016, Mr. Kaiser serves in the roles of CFO, corporate secretary and corporate governance officer. Prior to that, Mr. Kaiser provided services to the Registrant through his Company, Yes International, Inc. He has served as an officer and Co-Owner of Yes International since July, 1991. Yes International is a full-service EDGAR conversion, investor relations and venture capital firm located in Virginia Beach, Virginia. In 1990, Mr. Kaiser received a Bachelor of Arts degree in International Economics from Oakland University (formerly known as Michigan State University-Honors College.) The Board reviewed Mr. Kaiser's background and considered him qualified for his position due to his educational background and his experience with SEC filings and public companies. From April 1, 2015 to the present, Mr. Kaiser has also served as a director, secretary and interim CFO of Bravo Multinational, Inc., a public company formed under the laws of Wyoming with its headquarters located in Virginia Beach, VA. Bravo is in the business of buying and selling casino gaming equipment. The Board reviewed Mr. Kaiser's background and it considers him as qualified to fill this position, due to his extensive business experience and work with public companies.
On November 29, 2021, the Board of Directors (the “Board”) of BioForce Nanosciences Holdings, Inc. (the “Company”) appointed Steven Gagnon as its Co-CEO, effective November 30, 2021. Steve Gagnon is the Co-Founder and Co-CEO of Element International Inc., and is Director, Co-CEO and COO of Element Global, Inc. The stock of Element Global trades on the OTC Markets Pink, no information expert market. Mr. Gagnon has a 20-year history in media in the financing and production of film, television and music videos. Mr. Gagnon served as President of the sports group of Madison Sports and Entertainment Group, Inc., and worked as a supervisor in the offshore oil and construction industry for International Underwater Contractors. The Board reviewed Mr. Gagnon's background and it considers him as qualified to fill this position, due to his extensive business experience and work with public companies.
On November 29, 2021, the Board of Directors (the “Board”) of BioForce Nanosciences Holdings, Inc. (the “Company”) appointed John LaViolette as its Co-CEO, effective, November 30, 3020. John LaVioletter is the Co-Founder and Co-CEO of Element International Inc, and Co-CEO and Director of Element Global, Inc. The stock of Element Global trades on the OTC Markets Pink, no information expert market. Mr. LaViolette was also a senior partner in the entertainment law firm of Bloom, Hergott, Diemer, Rosenthal, LaViolette, Feldman, Schenkman & Goodman LLP. He has deep relationships with all major Hollywood studios and networks and has represented a vast number of "A-list" actors, writers, and directors. The Board reviewed Mr. LaViolette's background and it considers him as qualified to fill this position, due to his extensive business experience and work with public companies.
On November 29, 2021, the Board of Directors (the “Board”) of BioForce Nanosciences Holdings, Inc. (the “Company”) appointed Sasha Shapiro as its Presdient, effective November 30, 2021. Sasha Shapio is President and Director of Element Global, Inc. and Vice Chairman and President of Element Media Group. The stock of Element Global trades on the OTC Markets Pink, no information expert market. Mr. Shapiro is Managing Director of Media Content Capital, a private equity fund focused on investments in early/medium-stage media, internet, and entertainment companies. He has held senior management positions at Warner Bros Studios and Pacifica Ventures and has served as a producer on films including Fury, Sabotage, Fading Gigolo, Dirty Grandpa, Rock the Kasbah, Naked and Ophelia. He sits on the Board of Directors of Sonifi Solutions, QED International, Covert Media and VR MediaTech. The Board reviewed Mr. Shapiro's background and it considers him as qualified to fill this position, due to his extensive business experience and work with public companies.
BOARD OF DIRECTORS AND COMMITTEES
The Board of Directors acts as the Audit Committee and the Board has no separate committees. The Company has no qualified financial expert, because it has inadequate financial resources at this time to hire such an expert. The Company anticipates that a qualified financial expert will be obtained when the Company's financial position improves.
-8-
ITEM 11. Executive Compensation.
The table below summarizes the compensation during the last two fiscal years received by our executive officers:
|
Name and Principal Position |
Year |
Salary ($)(2) |
Stock Award ($) |
Total ($) (1)(2)(3)(4) | ||||
|
Merle Ferguson Chairman |
2020 2021 |
$-0- $-0- |
$118,500,000 (3) -0- |
$118,500,000 | ||||
|
Richard Kaiser CFO,Secretary and Director |
2020 2021 |
$-0- $-0- |
$39,500,000 (4) -0- |
$39,500,000 -0-
| ||||
|
Steve Gagnon (5) Co-CEO |
2020 2021 |
$-0- $-0- |
$-0- $-0- |
$-0- $-0-
| ||||
|
John LaViolette (5) Co-CEO |
2020 2021 |
$-0- $-0- |
$-0- $-0- |
$-0- $-0-
| ||||
|
Sasha Shapiro (5) President |
2020 2021 |
$-0- $-0- |
$-0- $-0- |
$-0- $-0-
| ||||
(1) Does not include perquisites and other personal benefits, or property, unless the aggregate amount of such compensation is more than $10,000.
(2) Employment agreements were entered into with Mr. Ferguson and Mr. Kaiser. Under the terms of those employment agreements Mr. Ferguson is owed $511,495 and Mr. Kaiser is owed $239,023 through the year-ended December 31, 2021. Those amounts have been accrued by the Company, but not paid. These wages may or may not be paid in the future or, in the alternative, the Company could issue stock in lieu of those payments.
(3) On March 31, 2020, 1,500,000 Series 'A' Preferred shares were issued to Mr. Ferguson as a signing bonus to enter into his employment agreement with the Company. The imputed value of $118,500,000 of the Series 'A' Preferred shares issued was based on share-based compensation expense calculated in accordance with the provisions of Accounting Standards Codification Section 718 - Compensation - Stock Compensation, as set forth in Note 6 to our consolidated financial statements in Item 8. Series 'A' Preferred stock, none of which is outstanding at this time, has the following characteristics: (1) it can be converted into 100 shares of common stock; (2) it has dividend rights at 100 times common, and (3) it has voting rights equal to 100 shares of common stock. On December 4, 2020, Mr. Ferguson returned these 1,500,000 shares of Series 'A' Preferred to be retired. In exchange, the Company issued to Mr. Ferguson 11,000,000 common shares. The Series 'A' Preferred shares of stock do not trade on a stock exchange and therefore are illiquid. Furthermore, the common shares issued are thinly traded and because they are restricted from sale under Rule 144, it is very likely that the actual cash value of those shares is greatly less than the aforementioned and imputed accounting value.
(4) On March 31, 2020, 500,000 Series 'A' Preferred shares were issued to Mr. Kaiser as a signing bonus to enter into his employment agreement with the Company. The imputed value of $39,500,000 of the Series 'A' Preferred shares issued was based on share-based compensation expense calculated in accordance with the provisions of Accounting Standards Codification Section 718 - Compensation - Stock Compensation, as set forth in Note 6 to our consolidated financial statements in Item 8. Series 'A' Preferred stock, none of which is outstanding at this time, has the following characteristics: (1) it can be converted into 100 shares of common stock; (2) it has dividend rights at 100 times common, and (3) it has voting rights equal to 100 shares of common stock. On December 4, 2020, Mr. Kaiser returned these 500,000 shares of Series 'A' Preferred to be retired. In exchange, the Company issued 3,000,000 common shares to Mr. Kaiser. The Series 'A' Preferred shares do not trade on a stock exchange and therefore are illiquid. Furthermore, the common shares issued are thinly traded and because they are restricted from sale under Rule 144, it is very likely that the actual cash value of those shares is greatly less than the aforementioned and imputed accounting value.
(5) On November 29, 2021, the Board of Directors of BioForce Nanosciences Holdings, Inc. appointed both Mr. Steve Gagnon and Mr. John LaViolette as Co-Chief Executive Officers (Co-CEOs), and appointed Sasha Shapiro as President, effective November 30, 2021.
Employment Agreements
On March 31, 2020, the Board of Directors approved the employment agreement for Mr. Merle Ferguson as the Company's Chairman, CEO, and President. In consideration of the execution of the Agreement, and the performance of his obligations hereunder, as President shall receive a fee of Two Hundred Eighty Eight Dollars US ($288,000) per year for five (5) years of services rendered with a start date of March 23, 2020; payable in new common S3, S8, or restricted shares (dependent upon registration availability), cash or combination of cash and shares of BioForce Nanosciences Holdings, Inc. Further, Mr. Ferguson was issued One Million Five Hundred Thousand (1,500,000) Preferred 'A' Shares, par value $0.001, as a one-time signing bonus per this employment agreement. Subsequently, on December 04, 2020, Mr. Merle Ferguson returned these Preferred Series 'A' shares and they were cancelled by the Board in exchange for 11,000,000 common shares, par value $0.001. These shares were issued pursuant to an exemption from registration provided by Section 4(2) of the Securities Act of 1933. The issuance was not a public offering as defined in Section 4(2) due to the limited number of persons that received the shares, and the manner of the issuances. In addition, the transfer of the common stock represented that Mr. Ferguson had the necessary investment intent as required by Section 4(2) and agreed to receive share certificates or book-entry shares containing a legend that states the securities were restricted pursuant to Rule 144 of the Securities Act. On November 29, 2021, the Board of Directors accepted the resignation of Mr. Merle Ferguson as Chief Executive Officer and President, effective November 30, 2021. Mr. Ferguson remains Chairman of the Board of Director of BioForce Nanoscience, Inc. and his March 31, 2020 contract remains in effect.
On March 31, 2020, the Board of Directors approved the employment agreement of Mr. Richard Kaiser as the Company's Director, CFO, and Secretary. In consideration of the execution of the Agreement, and the performance of his obligations hereunder, as Chief Financial Officer shall receive a fee of One Hundred Thirty Five Thousand Dollars US ($135,000) per year for five (5) years of services rendered with a start date of March 25, 2020; payable in registered shares or restricted shares (dependent upon registration availability), cash or combination of cash and shares of BioForce Nanosciences Holdings, Inc. Further, Mr. Kaiser was issued Five Hundred Thousand (500,000) Preferred 'A' Shares, par value $0.001, as a one-time signing bonus per this employment agreement. Subsequently, on December 04, 2020, Mr. Richard Kaiser returned these Series 'A' Preferred shares and they were cancelled by the Board in exchange for 3,000,000 common shares, par value $0.001. These shares were issued pursuant to an exemption from registration provided by Section 4(2) of the Securities Act of 1933. The issuance was not a public offering as defined in Section 4(2) due to the limited number of persons that received the shares, and the manner of the issuances. In addition, the transfer of the common stock represented that he had the necessary investment intent as required by Section 4(2) and agreed to receive share certificates or book-entry shares containing a legend that states the securities were restricted pursuant to Rule 144 of the Securities Act.
As of the date of this filing, Mr. Steve Gagnon and Mr. John LaViolette, Co-Chief Executive Officers (Co-CEOs), and Sasha Shapiro, President, hold these executive positions without employment agreement, compensation has yet to be determined.
Stock Options
The Company had no stock options outstanding at December 31, 2021.
Board of Directors Compensation
Our executive directors did not receive any compensation for their service as Directors of the Company for the years ended December 31, 2021.
In 2020 the Company issued 11,000,000 common shares to Mr. Ferguson as the Company's Chairman, CEO, and President.
In 2020, the Company issued 3,000,000 common shares to Mr. Kaiser as the Company's Director, CFO, and Secretary.
-9-
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table sets forth certain information regarding the beneficial ownership of our common stock as of December 31, 2021, by (i) each person who is known by us to own beneficially more than 5% of our outstanding common stock; (ii) each of our officers and directors; and (iii) all of our directors and officers as a group.
|
Name and Address of Beneficial Owner |
|
Amount of Common Stock Beneficially Owned |
|
Percentage Ownership of Common stock (1) |
|
|
|
|
|
|
|
Merle Ferguson 1750 Barbara Lane Encinitas, CA 92024 |
|
15,000,000 (2) |
|
51.24% |
|
Richard Kaiser 3419 Virginia Beach Blvd., Suite 252 Virginia Beach, VA 23452 |
|
5,088,000 (3) |
|
17.35% |
|
|
|
|
|
|
|
Susan Donohue |
|
4,000,000 (4) |
|
13.66% |
|
1239 Artic Street Antigo, WI 54409 |
|
|
|
|
|
Steve Gagnon 2020 General Booth Blvd., Unit 230 Virginia Beach, VA 23454 |
|
-0- (5) |
|
0% |
|
John LaViolette 2020 General Booth Blvd. ,Unit 230 Virginia Beach, VA 23454 |
|
-0- (5) |
|
0% |
|
Sasha Shapiro 2020 General Booth Blvd., Unit 230 Virginia Beach, VA 23454 |
|
-0- (5) |
|
-0-% |
|
All Officers and Directors as a Group (5 persons) |
|
20,088,000 |
|
68.59% |
(1) Applicable percentage ownership is based on 24,088,000 shares outstanding as of December 31, 2020, this reflects the post-split amounts based on the reverse stock split of 1 for 5 effective on February 28, 2020. There are no options, warrants, rights, conversion privilege or similar right to acquire the common stock of the Company outstanding as of December 31, 2020.
(2) Mr. Ferguson owns directly 15,000,000 shares of common stock.
(3) Mr. Kaiser owns directly 5,050,000 shares of common stock and he owns indirectly 38,000 shares beneficially through his Company, Yes International, Inc.
(4) Ms. Donohue owns her 4,000,000 shares beneficially indirectly through her wholly owned companies, TJJR Enterprises, Inc. and Trade Exchange International, Inc.
(5) On November 30, 2021, Mr. Steve Gagnon and Mr. John LaViolette became Co-Chief Executive Officers (Co-CEOs), and Mr. Sasha Shapiro became President. As of December 31, 2021 these gentlemen did not own any of the Company's stock.
RECENT SALES OF UNREGISTERED SECURITIES.
2020 Unregistered Securities
On February 20, 2020 the Company issued 1,168 restricted shares of common stock at $1.2495 per share based on the closing price of the Company's shares on February 20, 2020. The issuance was for product payment of the Company's "BioEclipse" Supplement and was record as stock payable in the amount of $1,339 (See Note 6).*
On March 31, 2020, the Board of Directors approved the employment agreement for Mr. Merle Ferguson as the Company's Chairman, CEO, and President. In consideration of the execution of the Agreement, and the performance of his obligations under that agreement, Mr. Ferguson shall receive a fee of Two Hundred Eighty Eight Dollars US ($288,000) per year for five (5) years with a start date of March 23, 2020. The compensation may be paid in new common S3, S8, or restricted shares (dependent upon registration availability), cash or combination of cash and shares of BioForce Nanosciences Holdings, Inc. Further, Mr. Ferguson was issued One Million Five Hundred Thousand (1,500,000) Preferred 'A' Shares, par value $0.001, as a one-time signing bonus per this employment agreement. Subsequently, the Preferred 'A' Shares were returned to the Company for cancellation in exchange for 11,000,000 common shares.
On March 31, 2020, the Board of Directors approved the employment agreement of Mr. Richard Kaiser as the Company's Director, CFO, and Secretary. In consideration of the execution of the Agreement, and the performance of his obligations under that agreement, as Mr. Kaiser shall receive a fee of One Hundred Thirty Five Thousand Dollars US ($135,000) per year for five (5) years with a start date of March 25, 2020. The compensation may be paid in registered shares or restricted shares (dependent upon registration availability), cash or combination of cash and shares of BioForce Nanosciences Holdings, Inc. Further, Mr. Kaiser was issued Five Hundred Thousand (500,000) Preferred 'A' Shares, par value $0.001, as a one-time signing bonus per this employment agreement. Subsequently, the Preferred 'A' Shares were returned to the Company for cancellation in exchange for 3,000,000 common shares.
The shares outstanding have been adjusted for the reverse split of 1 for 5 common shares effective February 28, 2020. All fractional share amounts after the split were rounded up to next whole share.
2021 Unregistered Securities
The Company issued no unregistered securities in 2021.
All securities issuances described above are deemed "restricted securities" within the meaning of that term as defined in Rule 144 of the Securities Act and have been issued pursuant to the "private placement" exemption under Section 4(2) of the Securities Act. Such transactions did not involve a public offering of securities. All purchasers in the private placement had access to information on the Company necessary to make an informed investment decision. The Company has been informed that all purchasers were able to bear the economic risk on investment in the Company. the new shareholders are aware that the securities were not registered under the Securities Act, and cannot be re-offered or re-sold unless they are registered or are qualified for sale pursuant to an exemption from registration. The transfer agent and registrar of the Company will be instructed to mark "stop transfer" on its ledger regarding these shares.
-10-
REPORTS TO SECURITY HOLDERS
The public may read and copy any materials the Company files with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, which can be found at http://www.sec.gov.
ITEM 13. Certain Relationships and Related Transactions and Director Independence.
Mr. Merle Ferguson, the Company's Chairman paid in 2021 $45,642 and he paid $62,726 in 2020 of the Company's expenses. On November 26, 2021, Mr. Ferguson received $16,200 from the Company for partial reimbursement on his expenses paid-to-date.
Mr. Richard Kaiser, the Company's CFO and Director paid $3,370 of the Company's expenses in 2021, and paid $4,750 of the Company's expenses in 2020.
Mr. Merle Ferguson and Mr. Richard Kaiser are Board Members and Officers of the Company's wholly-owned subsidiary, Element Global, Inc., a Wyoming Corporation.
ITEM 14. Principal Accounting Fees and Services.
Audit Related Fees
The aggregate fees billed by BF Borges CPA PC for audit and review services for financial statements for the year ended December 31, 2021 was $29,160 and for the year ended December 31, 2020 was $29,160.
Tax Fees
There were no aggregate fees billed by BF Borges CPA PC for professional services rendered for tax services for the fiscal years ended December 31, 2021 and 2020.
All Other Fees
There were no other fees billed by BF Borges CPA PC for professional service rendered for the fiscal years ended December 31, 2021 and 2020, other than as stated under the captions Audit Fees, Audit-Related Fees, and Tax Fees.
ITEM 15. Financial Statements and Exhibits.
Index to Financial Statements F-1- F-9
(b) Index to Exhibits.
Exhibit No. Description of Exhibit
3.1 Certificate of Incorporation (1)
3.2 Amended Articles of Incorporation (1)
3.3 Bylaws (1)
4.1 Specimen Certificate of Common Stock (1)
10.1 Employment Agreement – Merle Ferguson (1)
10.2 Employment Agreement - Kaiser (1)
10.3 Consulting Contract RSDL Enterprises- April 16, 2021 (1)
10.4 Supplier Agreement (Previously filed as Exhibit 10.1 Form 10/A) (1)
31.1 Certification Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.(2)
31.2 Certification Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002. (2)
32.1 Certification Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002. (2)
32.2 Certification Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.(2)
101 XBRL Instance Document (XBRL tags are embedded within the Inline XBRL document) (2)
(1) Previously filed
(2) Filed herewith
SIGNATURES
In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this annual report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
BIOFORCE NANOSCIENCES HOLDINGS, INC.
Date: February 11, 2022
By: /s/ Steve Gagnon
Chief Executive Officer
By: /s/ Richard Kaiser
Richard Kaiser, Director, Chief Financial Officer, Principal Accounting Officer and Secretary
-11-
BIOFORCE NANOSCIENCES HOLDINGS, INC. AND SUBSIDIARY
|
|
FINANCIAL REPORTS
AT
DECEMBER 31, 2021
|
BIOFORCE NANOSCIENCES HOLDINGS, INC. AND SUBSIDIARY | ||
|
TABLE OF CONTENTS |
|
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
F-2 |
|
Consolidated Balance Sheets at December 31, 2021 and 2020 |
F-3 |
|
Consolidated Statements of Operations for the Years Ended December 31, 2021 and 2020 |
F-4 |
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020 |
F-5 |
|
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2021 and 2020 |
F-6 |
|
Notes to Consolidated Financial Statements |
F-7-F-10 |
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID
To the shareholders and the board of directors of BioForce Nanosciences Holdings, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of BioForce Nanosciences Holdings, Inc. as of December 31, 2021 and 2020, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.
Substantial Doubt about the Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 4 to the financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 4. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
/S/ BF Borgers CPA PC
We have served as the Company’s auditor since 2017.
February 11, 2022
F-2
BioForce Nanosciences Holdings, Inc., and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Express in U.S. Dollars, except for the number of shares or otherwise stated)
|
2021 |
2020 | |||||
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| ||||||
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ASSETS | ||||||
|
Current Assets | ||||||
|
Cash |
$ |
|
$ |
| ||
|
Prepaid Expenses |
|
| ||||
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| ||||||
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Total Current Assets |
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| ||||
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| ||||||
|
Total Assets |
$ |
|
$ |
| ||
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| ||||||
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LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||
|
| ||||||
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Current Liabilities | ||||||
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Accounts Payable and Accrued Expenses |
$ |
|
$ |
| ||
|
Accrued Board of Directors Compensation |
|
| ||||
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Due to Related Parties |
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| ||||||
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Total Current Liabilities |
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Total Liabilities |
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Stockholders' Deficit | ||||||
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Common Stock - $ |
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Additional Paid-In-Capital |
|
| ||||
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Accumulated Deficit |
( |
) |
( | |||
|
| ||||||
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Total Stockholders' Deficit |
( |
) |
( | |||
|
| ||||||
|
Total Liabilities and Stockholders' Deficit |
$ |
|
$ |
|
The accompanying notes are an integral part of these financial statements
F-3
BioForce Nanosciences Holdings, Inc., and Subsidiary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Express in U.S. Dollars, except for the number of shares or otherwise stated)
|
For the Years Ended December 31, |
2021 |
2020 | ||||
|
| ||||||
|
Sales |
$ |
|
$ |
| ||
|
| ||||||
|
Cost of Sales |
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| ||||
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| ||||||
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Gross Profit |
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Operating Expenses | ||||||
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Board of Directors Compensation |
|
| ||||
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General and Administrative |
|
| ||||
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| ||||||
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Total Expenses |
|
| ||||
|
| ||||||
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Net Loss |
$ |
( |
) |
$ |
( | |
|
| ||||||
|
Weighted Average Number of Common Shares - Basic and Diluted |
|
| ||||
|
Net Loss Per Common Shares - Basic and Diluted |
$ |
( |
) |
$ |
( |
The accompanying notes are an integral part of these financial statements
F-4
BioForce Nanosciences Holdings, Inc., and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Express in U.S. Dollars, except for the number of shares or otherwise stated)
|
For the Years Ended December 31, |
2021 |
2020 | ||||
|
| ||||||
|
Cash Flows from Operating Activities | ||||||
|
| ||||||
|
Net Loss |
$ |
( |
) |
$ |
( | |
|
| ||||||
|
Non-Cash Adjustments: | ||||||
|
Common and Preferred Stock Issued for Current Year Board of Directors Compensation |
$ |
|
$ |
| ||
|
Changes in Assets and Liabilities: | ||||||
|
Prepaid Expenses |
( |
) |
| |||
|
Accounts Payable and Accrued Expenses |
|
( | ||||
|
Accrued Board of Directors Compensation |
|
| ||||
|
| ||||||
|
Net Cash Flows Used In Operating Activities |
( |
) |
( | |||
|
| ||||||
|
Cash Flows from Investing Activities |
|
| ||||
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| ||||||
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Cash Flows from Financing Activities | ||||||
|
Proceeds from Related Parties |
|
| ||||
|
| ||||||
|
Net Cash Flows Provided by Financing Activities |
|
| ||||
|
| ||||||
|
Net Change in Cash |
( |
) |
( | |||
|
| ||||||
|
Cash - Beginning of Year |
|
| ||||
|
| ||||||
|
Cash - End of Year |
$ |
|
$ |
| ||
|
| ||||||
|
Cash Paid During the Year for: | ||||||
|
Interest |
$ |
|
$ |
| ||
|
Income Taxes |
$ |
|
$ |
| ||
|
| ||||||
|
Supplemental Disclosures of Non Cash Investing and Financing Activities: | ||||||
|
Common Stock Issued to Pay Stock Payable |
$ |
|
$ |
|
The accompanying notes are an integral part of these financial statements
F-5
BioForce Nanosciences Holdings, Inc., and Subsidiary
STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY
(Express in U.S. Dollars, except for the number of shares or otherwise stated)
|
Common Stock |
Preferred Stock - A |
Additional |
Total Stockholders' | ||||||||||||||||||
|
$0.001 Par |
$ 0.001 Par |
Paid-In |
Accumulated |
(Deficit) | |||||||||||||||||
|
Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Equity | |||||||||||||||
|
| |||||||||||||||||||||
|
Balance - January 1, 2020 |
|
$ |
|
|
— |
$ |
|
$ |
( |
$ |
| ||||||||||
|
| |||||||||||||||||||||
|
Common Stock Issued for Product Payment - Stock Payable |
|
|
— |
— |
|
— |
| ||||||||||||||
|
| |||||||||||||||||||||
|
Preferred Shares Issued for Services |
— |
— |
|
|
|
— |
| ||||||||||||||
|
| |||||||||||||||||||||
|
Retirement of Preferred Shares in Exchange for Common Shares |
|
|
( |
( |
( |
— |
| ||||||||||||||
|
| |||||||||||||||||||||
|
Net Loss |
— |
— |
— |
— |
( |
( | |||||||||||||||
|
| |||||||||||||||||||||
|
Balance - December 31, 2020 |
|
$ |
|
|
— |
$ |
|
$ |
( |
$ |
( | ||||||||||
|
| |||||||||||||||||||||
|
Net Loss |
— |
— |
— |
— |
— |
( |
) |
( | |||||||||||||
|
| |||||||||||||||||||||
|
Balance - December 31, 2021 |
|
$ |
|
|
— |
$ |
|
$ |
( |
) |
$ |
( | |||||||||
The accompanying notes are an integral part of these financial statements
F-6
|
BIOFORCE NANOSCIENCES HOLDINGS, INC., AND SUBSIDIARY |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
|
|
NOTE 1 – Organization & Description of Business
The Company was incorporated in the State of Nevada on December 10, 1999 as Silver River Ventures, Inc. On February 24, 2006, the Company completed the acquisition of BioForce Nanosciences Holdings Inc. ("BioForce"), a Delaware corporation, and changed the corporate name at that time. On May 6, 2020, the Company purchased
NOTE 2 – Summary of Significant Accounting Policies
Basis of Presentation
The Company's consolidated financial statements have been prepared and presented in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Principles of Consolidation
The consolidated financial statements include the accounts of Bioforce Nanosciences Holdings, Inc., and its wholly owned subsidiary, Element Global, Inc., a Wyoming corporation, (the "Company"). All significant inter-company balances have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles 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.
Earnings (Loss) per Share
Earnings (loss) per share of common stock are computed in accordance with FASB ASC 260 "Earnings per Share". Basic earnings (loss) per share are computed by dividing income or loss available to common shareholders by the weighted-average number of common shares outstanding for each period. Diluted earnings per share are calculated by adjusting the weighted average number of shares outstanding assuming conversion of all potentially dilutive stock options, warrants and convertible securities, if dilutive. Common stock equivalents that are anti-dilutive are excluded from both diluted weighted average number of common shares outstanding and diluted earnings (loss) per share.
F-7
|
BIOFORCE NANOSCIENCES HOLDINGS, INC., AND SUBSIDIARY |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
|
|
NOTE 2 – Summary of Significant Accounting Policies - continued
Stock-Based Compensation
We account for employee and non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation-Stock Compensation, which requires all share-based payments, including grants of stock options, to be recognized in the financial statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and credited to additional paid-in capital over the period during which services are rendered.
Fair Value of Financial Instruments
The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable and accrued liabilities approximate fair value given their short-term nature or effective interest rates.
Revenue Recognition
The Company implemented ASC 606, Revenue from Contracts with Customers. 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.
The Company recognizes revenue and cost of goods sold 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.
NOTE 3 – Recently Issued Accounting Standards
The Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements, including the new lease standard. The Company does not have any leases and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE 4 – Going Concern
The Company's consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has reported recurring losses from operations and has net current liabilities and an accumulated deficit. These conditions raise substantial doubt as to the Company's ability to continue as a going concern.
While the Company is attempting to continue operations and generate revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management believes that the actions presently being taken to further implement the Company's business plan; to expand sales with a dynamic marketing campaign and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate revenues. During 2021 due to lack of revenues the officers of the Company paid for all expenses through loans to the Company. This allowed the Company to continue as a going concern.
F-8
|
BIOFORCE NANOSCIENCES HOLDINGS, INC., AND SUBSIDIARY |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
|
|
NOTE 5 – Related Party Transactions
The Company's Director, Secretary and Acting CFO, Richard Kaiser, is the operator of Yes International, a full-service investor relations firm. He handles duties of the Company regarding his officer capacities as the Secretary and Acting CFO, but also provides investor relations services through Yes International for the Company at no charge.
During the years ended December 31, 2021 and 2020, two board of directors paid expenses of the Company in the amount of $
NOTE 6 – Stock
Preferred Stock
Preferred stock consists of 100,000,000 shares authorized at $
Common Stock
Common stock consists of
During the year ended December 31, 2020, the Company issued
F-9
|
BIOFORCE NANOSCIENCES HOLDINGS, INC., AND SUBSIDIARY |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
|
|
NOTE 7 – Risks and Uncertainties
Coronavirus Impact (COVID-19)
Due to the recent outbreak of the coronavirus reported in many countries worldwide, local and federal governments have issued travel advisories, canceled large scale public events and closed schools. In addition, companies have begun to cancel conferences and travel plans and require employees to work from home. Global financial markets have also experienced extreme volatility and disruptions to capital and credit markets.
We are unable to predict the impact of the coronavirus on our operations at this time. Adverse events such as health-related concerns about working in our offices, the inability to travel, potential impact on our business partners and customers, and other matters affecting the general work and business environment could harm our business and delay the implementation of our business strategy. The adverse events may also adversely impact our ability to raise capital or to continue as a going concern. We continue to monitor the recent outbreak of the coronavirus on our operations.
F-10