10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2019
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-53183

KALLO INC.

(Exact name of registrant as specified in its charter)

NEVADA

(State or other jurisdiction of incorporation or organization)

255 Duncan Mill Road,

Suite 504

Toronto, Ontario

Canada M3B 3H9

(Address of principal executive offices, including zip code.)

(416) 246-9997

(Registrant’s telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. YES ☒   NO ☐

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 (SS 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). YES ☒   NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☒
(Do not check if smaller reporting company)		Emerging Growth Company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☒   NO ☐

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicated the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 1,147,698,199 as of December 31, 2020.

KALLO INC.

MARCH 31, 2019

TABLE OF CONTENTS

		PAGE
PART I
Item 1.	Financial Statements.	1
	Unaudited Consolidated Balance Sheets	1
	Unaudited Consolidated Statements of Operations	2
	Unaudited Consolidated Statements of Changes in Stockholders’ Deficiency	3
	Unaudited Consolidated Statements of Cash Flows	4
	Notes to Unaudited Consolidated Financial Statements	5
	Forward-Looking Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	10
Item 3.	Quantitative and Qualitative Disclosures about Market Risk.	17
Item 4.	Controls and Procedures.	17
PART II
Item 1.	Legal Proceedings.	18
Item 1A.	Risk Factors.	18
Item 6.	Exhibits.	22
Signatures		25
Exhibit Index		26

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

KALLO INC.

Consolidated Balance Sheets

(Amounts expressed in US dollars)

(Unaudited)

	March 31,			December 31,
ASSETS	2019			2018
Current Assets:
Total Current Assets	$	—		$	—
TOTAL ASSETS	$	—		$	—
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current Liabilities:
Accounts payable and accrued liabilities		3,426,576			3,307,421
Convertible loans payable – third parties		246,496			240,369
Short term loans payable		65,031			38,355
Convertible loans payable – related parties		842,003			820,688
Liability for issuable shares		1,724,290			149,240
Total Current Liabilities		6,304,396			4,556,073
TOTAL LIABILITIES		6,304,396			4,556,073
Commitments and Contingencies (Note 7)
Stockholders’ Deficiency
Preferred stock, $0.00001 par value, 100,000,000 shares authorized, 95,000,000 Series A preferred shares issued and outstanding		950			950
Common stock, $0.00001 par value, 1,150,000,000 shares authorized, 1,147,698,199 and 1,147,698,199 shares issued and outstanding, respectively.		11,478			11,478
Additional paid-in capital		41,920,116			41,920,116
Assignment of liabilities		(3,494,442	)		(3,550,857	)
Accumulated deficit		(44,742,498	)		(42,937,760	)
Total Stockholders’ Deficiency		(6,304,396	)		(4,556,073	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY	$	—		$	—

See accompanying notes to the unaudited consolidated financial statements

 -1-

KALLO INC.

Consolidated Statements of Operations

(Amounts expressed in US dollars)

(Unaudited)

	Three months Ended
	March 31,
	2019			2018
Operating Expenses
General and administration	$	1,711,474		$	122,820
Selling and marketing		1,086			—
Operating loss		(1,712,560	)		(122,820	)
Interest and financing costs		(27,442	)		(27,442	)
Foreign exchange (loss) gain		(64,736	)		83,934
Net Loss	$	(1,804,738	)	$	(66,328	)
Basic and diluted net loss per share	$	(0.00	)	$	(0.00	)
Weighted average shares used in calculating
Basic and diluted net loss per share		1,147,698,199			1,135,699,249

See accompanying notes to the unaudited consolidated financial statements

 -2-

KALLO INC.

Consolidated Statements of Changes in Stockholders’ Deficiency

For the three months ended March 31, 2019

(Amounts expressed in US dollars)

(Unaudited)

														Deficit
														Accumulated			Total
	Preferred Stock				Common Stock				Additional		Assignment			During the			Stockholders’
	$.00001 par value				$.00001 par value				Paid-In		Of			Development			Equity
	Shares		Amount		Shares		Amount		Capital		Liabilities			Stage			(Deficit)
Balance December 31, 2018		95,000,000		950		1,147,698,199		11,478		41,920,116		(3,550,857	)		(42,937,760	)		(4,556,073	)
Cash settlement of liabilities		—		—		—		—		—		56,415			—			56,415
Net loss		—		—		—		—		—		—			(1,804,738	)		(1,804,738	)
Balance March 31, 2019		95,000,000	$	950		1,147,698,199	$	11,478	$	41,920,116	$	(3,494,442	)	$	(44,742,498	)	$	(6,304,396	)

See accompanying notes to the unaudited consolidated financial statements

 -3-

KALLO INC.

Consolidated Statements of Cash Flows

(Amounts expressed in US dollars)

(Unaudited)

	Three months Ended
	March 31,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(1,804,738	)	$	(66,328	)
Adjustment to reconcile net loss to cash used in operating activities:
Stock based compensation		1,574,480			—
Interest and penalties		27,442			27,441
Unrealized foreign exchange loss (gain)		64,984			(85,063	)
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable and accrued liabilities		111,489			123,950
NET CASH USED IN OPERATING ACTIVITIES		(26,343	)		—
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short term loans payable		26,343			—
NET CASH PROVIDED BY FINANCING ACTIVITIES		26,343			—
NET (DECREASE) INCREASE IN CASH		—			—
CASH - BEGINNING OF PERIOD		—			—
CASH - END OF PERIOD	$	—		$	—
SUPPLEMENTAL CASH FLOW INFORMATION
Income tax paid	$	—		$	—
Interest paid	$	—		$	—
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Settlement of accounts payable by FE Pharmacy, Inc.	$	56,415		$	29,086

See accompanying notes to the unaudited consolidated financial statements

 -4-

KALLO INC.

Notes to Consolidated Financial Statements

March 31, 2019

(Amounts expressed in US dollars)

(Unaudited)

NOTE 1 – BUSINESS AND GOING CONCERN

Organization

Kallo Inc. ("Kallo" or the "Company") develops customized health care solutions designed to improve or enhance the delivery of care in the countries and regions we serve.

Going Concern

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The amounts of assets and liabilities in the consolidated financial statements do not purport to represent realizable or settlement values. The Company has incurred operating losses since inception and has an accumulated deficit and a working capital deficit at March 31, 2019. The Company is expected to incur additional losses as it executes its go to market strategy. This raises substantial doubt about the Company’s ability to continue as a going concern.

The Company has met its historical working capital requirements from the sale of common shares and short term loans. In order to not burden the Company, the officer/stockholder has agreed to provide funding to the Company to pay its annual audit fees, filing costs and legal fees as long as the board of directors deems it necessary. However, there can be no assurance that such financial support shall be ongoing or available on terms or conditions acceptable to the Company. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 2 – ACCOUNTING POLICIES AND OPERATIONS

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X related to smaller reporting companies. These unaudited consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes, which are included as part of the Company’s Form 10-K filed with the SEC for the year ended December 31, 2018.

Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited consolidated financial statements for fiscal year ended December 31, 2018 as reported in the 10-K have been omitted. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This pronouncement is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company adopted this new standard on January 1, 2019 using the modified retrospective transition approach but it did not have a material impact on the consolidated financial statements as there was no lease in existence.

 -5-

KALLO INC.

Notes to Consolidated Financial Statements

March 31, 2019

(Amounts expressed in US dollars)

(Unaudited)

NOTE 2 – ACCOUNTING POLICIES AND OPERATIONS (continued)

Recently Adopted Accounting Pronouncements (continued)

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Non-employee Share-Based Payment Accounting, which is part of the FASB’s simplification initiative to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This update provides consistency in the accounting for share-based payments to nonemployees with that of employees. The Company has adopted ASU 2018-07 in the first quarter of 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s financial statements and related disclosures.

NOTE 3 – COMMON STOCK

During the three months ended March 31, 2019, there were no movements in share capital issued and outstanding.

On April 8, 2017, the Company entered into an agreement with FE Pharmacy Inc., a company controlled by a shareholder of Kallo, and a related party, whereby in consideration for the issuance of 475,000,000 common stock of Kallo, FE Pharmacy Inc. assumed and will pay all of the Company’s outstanding indebtedness as at April 7, 2017. The 475,000,000 shares issuable to FE Pharmacy Inc. has been valued at the book value of the total liabilities assigned to FE Pharmacy Inc. of $4,135,037. The assignment of the liabilities to FE Pharmacy Inc. has been recorded as a receivable in the equity section of the consolidated balance sheet and will be reduced as the liabilities are settled by FE Pharmacy Inc. During the three months ended March 31, 2019, the assignment of liabilities amount has been reduced by $56,415 cash settlement of accounts payable.

NOTE 4 – RELATED PARTY TRANSACTIONS

During the quarter ended March 31, 2019, the Board of Directors approved the issuance of 57,000,000 shares to directors and shareholders of the Company as stock-based compensation and they were valued at $1,373,700. These shares will be issued after the Company is able to increase its authorized number of common shares.

During the quarter ended March 31, 2019, the Company designated 5,000,000 of is preferred stock as Series B preferred stock, each of which has 1,000 votes and are not convertible. The Company, will not, without the approval or express written consent of the all the holders of the Series B preferred stock (i) establish, create, authorize or approve the issuance of any series or class of preferred stock (ii) change any of the rights, privileges or preferences of the Series B preferred stock or (iii) redeem the Series B preferred stock..

During the quarter ended March 31, 2019, the Board of Directors approved the issuance of 5,000,000 Series B preferred shares to a director as compensation for services rendered and their fair value were deemed to be $201,350 based on the voting rights of the preferred shares relative to the fair value of the Company at the date of the approved issuance. These shares will be issued after the Company becomes current on all its filings requirements.

Included in liability for issuable shares is 3,731,005 common shares valued at $149,240 and approved for issuance to a family of the controlling shareholder of FE Pharmacy Inc as compensation during 2018 which will be issued after the Company is able to increase its authorized number of common shares. The transfer agent has erroneously issued these shares in spite of the Company’s instructions to wait for the increase in authorized number of common shares.

Included in accounts payable and accrued liabilities is an amount of $1,006,306 (December 31, 2018 - $908,004) due to directors of the Company as of March 31, 2019.

 -6-

KALLO INC.

Notes to Consolidated Financial Statements

March 31, 2019

(Amounts expressed in US dollars)

(Unaudited)

NOTE 5 – CONVERTIBLE LOANS PAYABLE

	March 31, 2019		December 31, 2018
Convertible promissory notes bearing interest at 15% per annum – third parties	$	246,496	$	240,369
Convertible promissory notes bearing interest at 15% per annum – related parties		842,003		820,688
	$	1,088,499	$	1,061,057

The Convertible loans payable bear 15% interest per annum and are convertible at a fixed price at any time during their 1 year term.  The Company has the option to pay the note at any time.  The Company analyzed the conversion option for derivative accounting consideration under ASC Topic 815-40, Derivatives and Hedging – Contract in Entity's Own Stock and concluded that the embedded conversion was a derivative but the fair value of the feature was zero. The total outstanding notes is $1,088,499, including accrued interest, of which $842,003 is to from related parties. Interest of $27,442 on the convertible loans payable are included in net finance charge for the three months ended March 31, 2019 included in the consolidated statement of operations. All of the above convertible loans payable were in default as of March 31, 2019.

NOTE 6 – SHORT TERM LOANS PAYABLE

	March 31, 2019		December 31, 2018
Non-interest bearing short term funding from third party	$	16,292	$	16,431
Non-interest bearing short term funding from related party		48,739		21,924
	$	65,031	$	38,355

As of March 31, 2019, the balance of $65,031 represented short term funding provided by a third party and a related party which are non-interest bearing, unsecured and have no fixed repayment date.  The loan from third party in Canadian dollars is $21,772 which is subject to revaluation at the end of each quarter.

 -7-

KALLO INC.

Notes to Consolidated Financial Statements

March 31, 2019

(Amounts expressed in US dollars)

(Unaudited)

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Contingencies

On April 21, 2017, an ex-employee of Kallo obtained a judgement ordering Kallo to pay Canadian $ 135,959 for unpaid wages and expenses relating to services performed in 2016. The full amount has been accrued for in the financial statements of Kallo.

On October 24, 2016, a consultant obtained a judgement ordering Kallo to pay Canadian $34,924 for unpaid fees. The full amount has been accrued for in the financial statements of Kallo.

On October 6, 2017, Thornley Fallis Communications Inc. ("Thornley") commenced a third party claim against Kallo concerning monies that Kallo allegedly owed to Thornley for redesign of a website and public relation services. Thornley is seeking damages in the amount of Canadian $169,345 plus interest on the amounts outstanding and indemnification of the costs of the action. An amount of Canadian $134,960 has been accrued for in the financial statements of Kallo.

There is also a claim by Commercial Credit Adjusters on behalf of Northwest Company for payment of Canadian $34,000. An amount of Canadian $24,016 has been accrued for in the financial statements of Kallo. Negotiations are in process for the settlement of this debt for a lump sum.

Canada Revenue Agency has assessed the Company for unpaid Canadian $112,243 as at March 31, 2019 representing unremitted employee source deductions and related penalties and interest, the full amount of which has been accrued in the financial statements of Kallo.

Responsibility for payments of the above claims has been assumed by FE Pharmacy Inc. under the terms of the agreement mentioned in Note 3.

NOTE 8 – SUBSEQUENT EVENTS

After March 31, 2019, accounts payable for a total of $39,388 were settled in cash by FE Pharmacy Inc. under the agreement mentioned in Note 3.

On December 6, 2019 the Company entered into a Joint Venture Corporation Agreement (the “Agreement”) with Techno-Investment Module, Ltd, a corporation domiciled in the Republic of Belarus (“TIM”) and Vintage Ventures Limited, a company domiciled in the Republic of Ghana (“Vintage”) for the purpose of pursuing certain commercial projects in the Republic of Ghana under the auspices of Ghana’s Petroleum Hub. However, subsequently, in light of certain unanticipated difficulties, the Company was persuaded that the challenges of undertaking transactions in the current and unprecedented COVID-19 environment present serious additional uncertainties together with serious and protracted risks, particularly in the factual context present here. Thus, the Company may not be able to proceed with any one or all of the contemplated transactions as set forth in the Agreement.

 -8-

As used herein, the term “we,” “us,” “our,” and the “Company” refers to Kallo, Inc. a Nevada corporation.

FORWARD-LOOKING STATEMENTS

THIS FORM 10-Q CONTAINS "FORWARD-LOOKING STATEMENTS". FORWARD-LOOKING STATEMENTS ARE STATEMENTS CONCERNING ESTIMATES, PLANS, OBJECTIVES, GOALS, STRATEGIES, EXPECTATIONS, INTENTIONS, PROJECTIONS, DEVELOPMENTS, FUTURE EVENTS, PERFORMANCE OR PRODUCTS, UNDERLYING (EXPRESSED OR IMPLIED) ASUMPTIONS AND OTHER STATEMENTS THAT ARE OTHER THAN HISTORICAL FACTS. IN SOME CASES FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING WORDS SUCH AS “ESTIMATED,” "BELIEVES," "EXPECTS," "MAY," "WILL," "SHOULD," OR "ANTICIPATES," OR THE NEGATIVE OF THESE WORDS OR OTHER VARIATIONS OF THESE WORDS OR COMPARABLE WORDS, OR BY DISCUSSIONS OF PLANS OR STRATEGY THAT INVOLVE RISKS AND UNCERTAINTIES. MANAGEMENT WISHES TO CAUTION THE READER THAT THESE FORWARD-LOOKING STATEMENTS, INCLUDING, BUT NOT LIMITED TO, STATEMENTS REGARDING THE COMPANY AND ITS PLANS OR INTENTIONS, ESTIMATES, GOALS, COMPETITIVE TRENDS AND OTHER MATTERS THAT ARE NOT HISTORICAL FACTS ARE ONLY PREDICTIONS. NO ASSURANCES CAN BE GIVEN THAT SUCH PREDICTIONS WILL PROVE CORRECT OR THAT THE ANTICIPATED FUTURE RESULTS WILL BE ACHIEVED. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY EITHER BECAUSE ONE OR MORE PREDICTIONS PROVE TO BE ERRONEOUS OR AS A RESULT OF OTHER RISKS FACING THE COMPANY. FORWARD-LOOKING STATEMENTS SHOULD BE READ IN LIGHT OF THE CAUTIONARY STATEMENTS AND IMPORTANT FACTORS DESCRIBED IN THIS FORM 10-Q, INCLUDING, BUT NOT LIMITED TO "THE FACTORS THAT MAY AFFECT FUTURE RESULTS" SHOWN AS ITEM 1A AND IN MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. THE RISKS INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH AN EARLY-STAGE COMPANY HAS LIMITED ASSETS AND OPERATIONS, THE COMPARATIVELY LIMITED FINANCIAL RESOURCES OF THE COMPANY, THE COMPANY IS INSOLVENT AND ITS TOTAL LIABILITIES EXCEED ITS TOTAL ASSETS, THE INTENSE COMPETITION THE COMPANY FACES FROM OTHER ESTABLISHED COMPETITORS, AND THE LEGAL UNCERTAINTIES THAT DIRECTLY AND INDIRECTLY IMPACT DEVELOPMENT-STAGE COMPANIES. ANY ONE OR MORE OF THESE OR OTHER RISKS COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE FUTURE RESULTS INDICATED, EXPRESSED, OR IMPLIED IN SUCH FORWARD-LOOKING STATEMENTS. WE UNDERTAKE NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENT TO REFLECT EVENTS, CIRCUMSTANCES, OR NEW INFORMATION AFTER THE DATE OF THIS FORM 10-Q OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED OR OTHER SUBSEQUENT EVENTS.

 -9-

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This section of the report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions. All funds are reflected in United States dollars unless otherwise indicated.

We are a small company with limited financial and managerial resources and we are insolvent. There is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have generated insignificant revenues from our operations during the last eight years. We have been able to remain in business as a result of investments, in debt or equity securities, by our officers and directors and by other unrelated parties. We expect to incur operating losses in the foreseeable future and our ability to continue as a going concern is dependent upon our ability to raise additional money through investments by others and achieve profitable operations. There is no assurance that we will be able to raise additional money or that additional money or that additional financing will be available to us on satisfactory terms or that we will be able to achieve profitable operations. The consolidated statements were prepared under the assumption that we will continue as a going concern, however, there can be no assurance that such financial support shall be ongoing or available on terms or conditions acceptable to the Company. This raises substantial doubt about our ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

For the last eight fiscal years, starting January 2010, our management and board of directors have raised funds through a personal and professional network of investors. This has enabled product and business development, continued operations, and generation of customer interest. In order to continue operations, management has contemplated several options to raise capital and sustain operations in the next 12 months. These options include, but are not limited to, debt and equity offers to existing shareholders, debt and equity offers to independent investment professionals and through various other financing alternatives.  We currently believe that if we can secure sufficient additional capital on a timely basis, in sufficient amounts and on reasonable terms and if we are successful in securing at least one project that likely will enable us to continue operations for the next 12 months.  There can be no guarantee that we will receive sufficient additional capital on a timely basis and on reasonable terms that will allow is to continue to remain in business. Currently we have not received any commitment from any third party to provide the additional capital that we believe we will require to sustain our Company as a corporate entity or otherwise allow us to meet our financial obligations.

On April 8, 2017, the Company entered into an agreement with FE Pharmacy Inc. whereby in consideration for the issuance of 475,000,000 common stock of Kallo, FE Pharmacy Inc. assumed and will pay all of the Company’s outstanding indebtedness as of April 7, 2017. Management believes that with this agreement in place, it can concentrate on bringing the potential projects as detailed below to fruition and any additional funding can be met through one of the three options mentioned above.

 -10-

In 2017 the Government of Ghana initiated several discussions with us, to revisit how the Ministry of Defense – Military Hospital requirements, the Ministry of Health healthcare infrastructure requirements and the Ministry of Education Teaching Hospital infrastructure requirements can be met using the Kallo Integrated Delivery Model. The success of these discussions confirmed Ghana’s continued belief in the Kallo Integrated Delivery System, as the best solution for the nation’s healthcare infrastructure development, which is very encouraging for our continued business in Ghana.

On June 20, 2017, our branch office was legally registered in Ghana. A valid tax identification number was issued and this number is to be used by us in all of our anticipated business that we hope to conduct within Ghana. We have incorporated four SPVs (Special Purpose Vehicles / Companies) to oversee the various projects we seek to undertake in Ghana. The SPVs are all incorporated under the laws of Ghana as private companies. Based on our internal management assessments conducted without the benefit of any independent third-party review or evaluation, we believe that our business plans involving Ghana are sound and may offer us significant business opportunities. However, we cannot assure you that we will be able to obtain sufficient financing on reasonable terms and on a timely basis that will allow us to pursue these opportunities.

We have entered into four major concession agreements with four key governmental institutions in Ghana. We have also, through our SPVs has entered into the following concession arrangements for the construction and operation of various hospital facilities in Ghana:

	Project Description	Kallo SPV
1	Tamale Military Hospital project	K-TMH Ghana Limited
2	Cape Coast Teaching Hospital project	K-UCC Cape Coast Limited
3	Sunyani Teaching Hospital project	K-UENR Sunyani Limited
4	Ho Teaching Hospital project	K-UHAS Ho Limited

These agreements are effective upon execution and the concession period will start from the date on which financial close is achieved with the Lenders and all conditions precedent are satisfied or waived. The financing has not closed yet and there is no guarantee that financial close will be achieved.

Plan of Operation

The following plan of operation contains forward-looking statements, which involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth elsewhere in this document. Because of the speculative nature of our operations and the nature of the African countries we are attempting to do business with, there is no assurance that any of the planned operations will occur.

To the extent that we are financially able and if circumstances allow, we plan to continue to develop components of Kallo Integrated Delivery System:

 -11-

Kallo Integrated Delivery System (KIDS)

MobileCare^TM – a mobile trailer that opens into a state of the art clinical setup in a vehicle equipped with the latest technology in healthcare.   More than just a facility, MobileCare TM can instantly connect the onboard physician with specialists for on-demand consultation via satellite through its Telehealth system. This is truly a holistic approach to delivering healthcare to the remotely located. For many rural communities, the nearest hospital, doctor or nurse may be hundreds of kilometers away. In many cases, this gap can be bridged using Telehealth technology that allows patients, nurses and doctors to talk as if they were in the same room.

RuralCare^TM – prefabricated modular healthcare units focused in rural areas where no roads infrastructure is available.  They are equipped to provide primary healthcare including X-Ray, ultrasound, surgery, pharmacy and lab services.  Ranging from 1,200 to 3,800 square feet, these clinics can be up and running in disaster zones or rural areas in as little as one week.  Similar to the MobileCare ^TM product, RuralCare ^TM also utilizes satellite communications to access the Telehealth system.

Our overall healthcare mission is to "reach the unreached".  Based on our own internal assessments conducted by our officers and without the benefit of any independent third party evaluation, we believe that may be able to offer end-to-end solution that may include the following:

Global response center – located in the Kallo headquarters in Canada, this is the escalation point for the coordination of delivery of Telehealth and eHealth support. It consists of both the Clinical Command Center and the Administrative Command Center.

Regional response centers, Clinical and Administrative Command centers – located in the urban area hospitals and connected with satellite communications, these centers coordinate all aspects of the healthcare delivery solution with the Mobile clinics and Rural clinics including clinical services, Telehealth services, pharmacy and medical consumable coordination as well as escalations to the Global response center.

Kallo University – provides education, training and development of local resources for all aspects of the healthcare delivery which includes clinical, engineering and administration.

Emergency Medical Services – provides ground and air ambulance vehicles for emergency patient transport. We have now incorporated Medical Drone Services. 

Based solely on our internal management assessments conducted without the benefit of any independent third-party review or evaluation, we believe that our end-to-end delivery solution is equipped with necessary medical equipment as per regional healthcare requirements. We also install our copyrighted software and third party software as required along with a five (5) year support agreement renewable after the five (5) year initial term that includes the medical equipment, software licenses, installation implementation and training.  If we are successful then we anticipate that may, if circumstances are favorable, allow us to generate an ongoing revenue stream for service, maintenance, spare-parts, and consumables. However, we can not assure you that even if we are able to achieve these goals that we can do so at levels that may allow us to achieve and sustain positive cash flow and profitability. We have incurred significant and protracted losses and we have no record of achieving and sustaining positive cash flow and profitability and we can not be certain that we will achieve either or both of these goals at any time in the future.

 -12-

Business Overview

The Global need for standardized healthcare service delivery to all geographies and to all people is the fundamental business driver for the innovation of the Kallo Integrated Delivery System – “KIDS”.

This unique and comprehensive concept was developed based on first hand discovery and a detailed study of ground realities and causal analysis over 15 years. The business issues in the current healthcare systems are addressed by intricate orchestration of technologies both proprietary and off the shelf to create a standardized healthcare delivery model across the continuum of care.

A strategic market approach was defined for customers to take a well-informed decision and to work with Kallo on a national strategy for healthcare infrastructure and a standardized healthcare services delivery model across the country. This led to the development of a structured business development process and management for business success.

The business development model, unique to KIDS, included in-country stakeholder workshops and white-board sessions on the KIDS concept and its application in their context of healthcare infrastructure and healthcare services delivery model.

Kallo instituted the concept of conducting detailed Clinical, Engineering and Technology studies led by Kallo to establish detailed requirements for preparation of a customized proposal for the country and a phased roll out plan.

In addition, Kallo has addressed the major issue of financing such large initiatives in under developed countries by developing a network of financial institutions and Banks across the globe focused on humanitarian and healthcare projects.

Go-To-Market Strategy

Our Sales Go-To-Market Strategy is segmented based on the varying needs of our customers in the following three categories:

1. Full solution with Kallo Integrated Delivery System (KIDS) – typically longer sales cycle and includes the end to end solution of Mobile Clinics, Rural Poly Clinics, Global and Regional response centers, Clinical and Administrative command centers, telehealth support, Kallo University training, pharmacy and medical consumable support and Emergency services with ground and air ambulance vehicles. This solution is focused on the end-to-end healthcare needs of developing countries.
2. Medical Tourism
3. COVID-19 Rapid Response Program

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Kallo’s Value Proposition

• Laying the foundational elements in building the primary care infrastructure for an entire country
• Providing Technologies for current and future adoption of advancements in clinical services such as Telemedicine, remote maintenance and management etc.
• Creating operational policies and procedures to set higher standards of care
• Provide Education and training to build resource capacity within the country
• KIDS provide a modular and flexible Point-of-Care facility to enable healthcare services from cities to the most rural areas in a given country and helps overcome inequalities in healthcare services across all geographies.

Kallo’s Key Market Differentiators

Kallo differentiates itself in our market segment by offering the most comprehensive and holistic healthcare deliver solution available to meet the needs of developing countries and countries with rural and remote populations. Kallo has invested considerable time and energy studying and understanding the healthcare needs of our target market.

Unequivocal Differentiators

1. Care platforms (Point-of-care facilities - Mobile Clinics, Rural clinics & Modular Hospitals) manufactured to North American and internationally accepted standards

2. Programs, facilities and services set-up to proactively detect and treat infectious diseases

3. On-going Tele-health service support, leveraging both local and international expertise

4. On-going education, training, & certification programs offered through Kallo University

5. On-going service & maintenance programs for all facilities and equipment

6. Leverages local skillsets and creates employment opportunities

Competitive Landscape

Healthcare landscape is the most complex industry at large. It has developed in each area of its function in an isolated fashion and hence today we have disparate functions, technologies and infrastructure. Globally healthcare industry leaders are working hard to bring a synchronized approach in patient encounter, diagnosis and treatment including preventive care. Kallo has leaped into the future with the KIDS concept and have successfully brought together technologies including global telemedicine, infrastructure and functional expertise leading the industry and have created the Kallo business ecosystem.

Kallo Integrated Delivery System (KIDS) has been the key to our success in the under-developed, countries and will take a lead into developing and developed countries with the flexibility of deploying components of KIDS.

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Need for additional capital

We have incurred significant and protracted operating losses since inception and have an accumulated deficit and a working capital deficit at March 31, 2019. We expect to incur additional losses as we execute our go to market strategy. This raises substantial doubt about the Company’s ability to continue as a going concern.

We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a business enterprise, including limited capital resources and possible cost overruns due to price increases in services and products.

To become profitable and competitive, we anticipate that we will have to sell our products and services in sufficient volumes and with margins that may allow us to achieve profitability. We cannot assure you or anyone that we will be successful in these efforts.

There is no guaranty that we will obtain sufficient additional financing on a timely basis and on reasonable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop, or expand our operations. Any equity financing will likely result in immediate and substantial dilution of existing stockholders.

Results of operations

Revenues

We did not generate any revenues during the three months ended March 31, 2019 or 2018. However, we are pursuing what we hope may be suitable business opportunities that, based on our own internal management assessments conducted without the benefit of any independent third-party review or evaluation, may offer us commercially feasible and appropriate opportunities. However, we cannot assure you that we will be successful in any of these matters or, if we achieve any success, that it will allow to achieve and sustain positive cash flow and profitability.

Expenses

During the three months ended March 31, 2019 we incurred total expenses of $1,804,738, including $1,672,873 in salaries and compensation, $32,897 in professional fees, $27,442 in interest and financing costs, $64,736 in loss on foreign exchange, $1,086 in selling and marketing and $5,704 as other expenses whereas during the three months ended March 31, 2018 we incurred total expenses of $66,328, including $101,945 in salaries and compensation, $17,155 in professional fees. $27,442 in interest and financing costs, $83,934 in gain on foreign exchange and $3,720 as other expenses.

The increase in our total expenses for the three months ended March 31, 2019 from the comparative period is mainly due to an increase in salaries and compensation of $1,570,928 due to non-cash stock-based compensation of $1,574,480, an increase in professional fees of $15,742, an increase of $148,670 in foreign exchange loss. The negative change in foreign exchange is due to the depreciation of the US dollar vis a vis the Canadian dollar.

The Company is operating with a minimal number of full time employees and office space until it can secure new contracts.

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Net Loss

During the three months ended March 31, 2019 we did not generate any revenues and incurred a net loss of $1,804,738 compared to a net loss of $66,328 during the same period in 2018. The main reasons were the increase in salaries and compensation and foreign exchange loss as discussed above. In that respect, we cannot assure you that we will be successful in reducing our losses at any time in the future and we may face significant and protracted financial losses and we cannot guarantee that we will achieve any of our business goals.

Liquidity and capital resources

As at March 31, 2019, the Company had no current assets and current liabilities of $6,304,396, indicating working capital deficiency of $6,304,396. As of March 31, 2019, we had no assets and our total liabilities were $6,304,396 comprised of $3,426,576 in accounts payable and accrued liabilities, convertible loans payable of $1,088,499, short term loans of $65,031 and liability for issuable shares of $1,724,290.

Cash used in operating activities amounted to $26,343 during the three months ended March 31, 2019, primarily as a result of the net loss adjusted for non-cash items and various changes in operating assets and liabilities.

Cash provided by financing activities amounted to $26,343 from proceeds from short term loans payable.

There was no cash movement in investing activities during the current three months period ended March 31, 2019.

As of March 31, 2019, our Total Liabilities exceeded our Total Assets and we were insolvent. In that respect we face all the risks and uncertainties of any insolvent corporation that could easily result in stockholders losing all or substantially all of their investment. Our common stock and our preferred stock are securities that should only be acquired by persons who can accept the HIGH RISK of such an investment.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We maintain "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation (the "Evaluation"), under the supervision and with the participation of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures ("Disclosure Controls") as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our CEO and CFO concluded that our Disclosure Controls were not effective as of the end of the period covered by this report due to lack of segregation of duties in financial reporting and presence of adjusting journal entries during the audit as well as insufficient controls over the financial close process and preparation of the financial statements.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

On April 21, 2017, an ex-employee of Kallo obtained a judgement ordering Kallo to pay Canadian $ 135,959 for unpaid wages and expenses relating to services performed in 2016. The full amount has been accrued for in the financial statements of Kallo.

On October 24, 2016, a consultant obtained a judgement ordering Kallo to pay Canadian $34,924 for unpaid fees. The full amount has been accrued for in the financial statements of Kallo.

On October 6, 2017, Thornley Fallis Communications Inc. ("Thornley") commenced a third party claim against Kallo concerning monies that Kallo allegedly owed to Thornley for redesign of a website and public relation services. Thornley is seeking damages in the amount of Canadian $169,345 plus interest on the amounts outstanding and indemnification of the costs of the action. An amount of Canadian $134,960 has been accrued for in the financial statements of Kallo.

There is also a claim by Commercial Credit Adjusters on behalf of Northwest Company for payment of Canadian $34,000. An amount of Canadian $24,016 has been accrued for in the financial statements of Kallo. Negotiations are in process for the settlement of this debt for a lump sum.

Canada Revenue Agency has assessed the Company for unpaid Canadian $112,243 as at March 31, 2019 representing unremitted employee source deductions and related penalties and interest, the full amount of which has been accrued in the financial statements of Kallo.

While we believe that we may be successful in resolving these claims, we cannot assure that the outcome will not have a material adverse effect upon us.

ITEM 1A. RISK FACTORS.

Our Common Stock is subject to a number of substantial risks, including those described below. No attempt has been made to rank these risks in the order of their likelihood or potential harm. In addition to those general risks enumerated elsewhere in the document, any purchaser of the Company’s common stock should also consider the following risk factors:

Risks Related to the Ownership of the Company’s Stock

1. No Revenues from Operations & Continuing Losses; Risk of Loss & Insolvency. During the past two fiscal years we have not generated and revenues and there can be no assurances that we will be successful in generating revenues in the future. In that respect we face all of the risks inherent in an early-stage business. We have incurred losses and there can be no assurance that we will ever achieve profitability and positive cash flow. While we believe that our business strategies are sound, there can be no assurance that our business will generate profits and positive cash flow or if we generate profits and positive cash flow, that it can be sustained. Investors should be aware that they may lose all or substantially all of their investment. We are also insolvent since our Total Liabilities exceed our Total Assets.

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2. Limited Corporate Officers & Employees. We have only three corporate officers, one of which is part-time and an aggregate of four employees, including our three officers.

3. Auditor's Opinion: Going Concern & Insolvency. Our independent auditors have expressed substantial doubt about the Company's ability to continue as a going concern since: (a) our Total Current Liabilities exceed our Total Current Assets; (b) our Total Liabilities exceed our Total Assets; and (c) we are an early-stage company and there exists only a limited history of operations. Since our Total Liabilities exceed our Total Assets, we are insolvent and anyone who acquires our Common Stock should be prepared to lose their entire investment.

4. Limited Financial Resources; Need for Additional Financing. Our financial resources are minimal and we are insolvent. We need to obtain additional financing from the sale of our Common Stock, Debt, or some combination thereof in order to undertake further business plans. Our ability to operate as a going concern is contingent upon our receipt of additional financing through private placements or by loans. We anticipate that we will require significant additional funds in the future if we are successful in marketing our products and services. There can be no assurance that if additional funds are required they will be available, or, if available, that they can be obtained on terms satisfactory to our Board of Directors. In the event the Company elects to issue stock to raise additional capital, any rights or privileges attached to such stock may either (i) dilute the percentage of ownership of the already issued common shares or (ii) dilute the value of such shares; or (iii) both. No rights or privileges have been assigned to the stock and any such rights and privileges will be at the total discretion of the Board of Directors of the Company. There can be no guarantee that we will be able to obtain additional financing, or if we are successful, that we will be able to do so on terms that are reasonable in light of current market conditions. Further, we have not received any commitment from any person to provide any additional financing and we cannot assure that any such commitment is forthcoming.

5. Limited and Sporadic Trading Market for Common Stock. Our Common Stock trades on the OTC Market on a limited and sporadic basis and there can be no assurance that a liquid trading market for our Common Stock will develop and, if it does develop, that it can be sustained.

6. Lack of Revenues And Development Stage Company. We have no history of generating Sales Revenues and we cannot assure that we will generate any Sales Revenues in the future or, if we do, that we can achieve Sales Revenues at a level that will allow us to also achieve and maintain profitability and positive cash flow. We face all of the risks inherent in a new business. There is no information at this time upon which to base an assumption that our plans will either materialize or prove successful. Our present business plans and strategies have been developed by our corporate officers and they have been evaluated by any independent third party. plans have not been determined. There can be no assurance that any of our business plans and strategies will generate sales revenues that will result in any profits or positive cash flow. Investors should be aware that they may lose all or substantially all of their investment.

7. Lack of Dividends & No Likelihood of Dividends. We have not paid dividends and do not contemplate paying dividends in the foreseeable future.

8. Competition. We are an insignificant participant among firms which offer health care products and services. There are many well-established health care product and service companies which have significantly greater financial and managerial resources, technical expertise and experience than the Company. In view of our limited financial and managerial resources, we will likely be at a significant competitive disadvantage vis-a-vis our competitors.

9. No Ability to Control. Any person who acquires our Common Stock will have no real ability to influence or control the Company or otherwise have any ability to elect any person to our Board of Directors. Our officers, directors, and certain other persons currently control the Company and there is no likelihood that any person who acquires our Common Stock will have any real ability to influence or control the Company in any meaningful way.

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10. Negative Equity. Our Total Liabilities exceed our Total Assets. As a result, we are insolvent and we cannot assure you that we will be able to become solvent at any time in the future.

11. Possible Rule 144 Stock Sales. Many of our shares of our outstanding Common Stock are "restricted securities" and may be sold only in compliance with Rule 144 adopted under the Securities Act of 1933, as amended or other applicable exemptions from registration. Any person who acquires our common stock in any private placement should carefully review Rule 144 since any potential public resale may be limited and current broker-dealer and clearing firm requirements may make any re-sale of our common stock difficult at best.

12. Absence of Underwriter Commitment. Based on our current plans, we anticipate that we will likely need to raise significant additional capital to meet our current and anticipated financial needs, we have not received any commitment from any registered broker-dealer or underwriter to assist us in raising needed capital. As a result, we face a clear risk that we will not have sufficient cash resources to meet our current financial obligations and otherwise implement our business plans. In that event, we may not be able to implement our plans and we will not be able to achieve profitability and positive cash flow or, if we do, that we can sustain either or both of them for any period of time.

13. Risks of Low Priced Stocks. Currently, our common stock is not trading in any market and there is no certain prospect that the Company’s common stock will regain any trading in any organized market. In the past, the Company’s common stock had only limited and sporadic trading in the so-called "pink sheets," and before that, on the "Electronic Bulletin Board." As a result and due to the absence of a market, a shareholder may find it more difficult to dispose of, or to obtain accurate quotations as to the price of, the Company's securities. In the absence of a security being quoted on NASDAQ, or the Company having $2,000,000 in net tangible assets, trading in the Common Stock is covered by Rule 3a51-1 promulgated under the Securities Exchange Act of 1934 for non-NASDAQ and non-exchange listed securities. Under such rule, broker/dealers who recommend such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or an annual income exceeding $200,000 or $300,000 jointly with their spouse) must make a special written suitability determination for the purchaser and receive the purchaser's written agreement to a transaction prior to sale.

In general, securities are also exempt from this rule if the market price is at least $5.00 per share, or for warrants, if the warrants have an exercise price of at least $5.00 per share. The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosure related to the market for penny stocks and for trades in any stock defined as a penny stock. The Commission has recently adopted regulations under such Act which define a penny stock to be any NASDAQ or non-NASDAQ equity security that has a market price or exercise price of less than $5.00 per share and allow for the enforcement against violators of the proposed rules.

In addition, unless exempt, the rules require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule prepared by the Commission explaining important concepts involving the penny stock market, the nature of such market, terms used in such market, the broker/dealer's duties to the customer, a toll-free telephone number for inquiries about the broker/dealer's disciplinary history, and the customer's rights and remedies in case of fraud or abuse in the sale.

Disclosure also must be made about commissions payable to both the broker/dealer and the registered representative, current quotations for the securities, and if the broker/dealer is the sole market-maker, the broker/dealer must disclose this fact and its control over the market.

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Finally, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. While many NASDAQ stocks are covered by the proposed definition of penny stock, transactions in NASDAQ stock are exempt from all but the sole market-maker provision for (i) issuers who have $2,000,000 in tangible assets ($5,000,000 if the issuer has not been in continuous operation for three years), (ii) transactions in which the customer is an institutional accredited investor and (iii) transactions that are not recommended by the broker/dealer. In addition, transactions in a NASDAQ security directly with the NASDAQ market-maker for such securities, are subject only to the sole market-maker disclosure, and the disclosure with regard to commissions to be paid to the broker/dealer and the registered representatives.

Finally, all NASDAQ securities are exempt if NASDAQ raised its requirements for continued listing so that any issuer with less then $2,000,000 in net tangible assets or stockholder's equity would be subject to delisting. These criteria are more stringent than the proposed increased in NASDAQ's maintenance requirements.

Our securities are subject to the above rules on penny stocks and the market liquidity for our securities could be severely affected by limiting the ability of broker/dealers to sell our securities.

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ITEM 6. EXHIBITS.

The following documents are included herein:

		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
2.1	Articles of Merger.	8-K	1/21/11	2.1
3.1	Articles of Incorporation.	SB-2	3/05/07	3.1
3.2	Bylaws.	SB-2	3/05/07	3.2
3.3	Amended Articles of Incorporation (11/23/2015).	8-K	12/02/15	3.1
4.1	Specimen Stock Certificate.	SB-2	3/05/07	4.1
10.1	Agreement with Rophe Medical Technologies Inc. dated December 11, 2009.	10-K	3/31/10	10.2
10.2	Amended Agreement with Rophe Medical Technologies Inc. dated December 18, 2009.	10-K	3/31/10	10.3
10.3	Amended Agreement with Rophe Medical Technologies Inc. dated March 16, 2010.	10-K	3/31/10	10.4
10.4	Investment Agreement with Kodiak Capital Group, LLC dated October 20, 2014	S-1	10/30/14	10.6
10.5	Amended Agreement with Jarr Capital Corp.	8-K	2/22/11	10.1
10.6	Termination of Employment Agreement with John Cecil	8-K	2/22/11	10.2
10.7	Termination of Employment Agreement with Samuel Baker	8-K	2/22/11	10.4
10.8	Services Agreement with Buchanan Associates Computer Consulting Ltd.	10-K	5/18/11	10.1
10.9	Equipment Lease Agreement with Buchanan Associates Computer Consulting Ltd.	10-K	5/18/11	10.2
10.10	Agreement with Mansfield Communications Inc.	10-K	5/18/11	10.3
10.11	Agreement with Watt International Inc.	10-K	5/18/11	10.4
10.12	Pilot EMR Agreement with Nexus Health Management Inc.	10-K	5/18/11	10.5
10.13	2011 Non-Qualified Stock Option Plan	S-8	6/27/11	10.1
10.14	Multimedia Contractual Agreement with David Miller	8-K	10/28/11	10.1

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		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
10.15	Strategic Alliance Agreement with Petro Data Management Services Limited and Gateway Global Fabrication Ltd.	8-K	11/02/11	10.1
10.16	Independent Contractor Agreement with Savers Drug Mart	8-K	1/26/12	10.1
10.17	2012 Non-Qualified Stock Option Plan	S-8	9/06/12	10.1
10.18	Memorandum of Offering with Ministry of Health of Republic of Ghana	S-1/A-3	6/26/13	10.32
10.19	Addendum to Investment Agreement with Kodiak	S-1/A-4	7/31/13	10.33
10.20	Second Addendum to Investment Agreement with Kodiak	S-1	8/25/14	10.34
10.21	Email from Kodiak	S-1/A-1	9/24/14	10.35
10.22	Email from Kodiak	S-1/A-1	9/24/14	10.36
14.1	Code of Ethics	S-1	8/25/14	14.2
16.1	Letter from Collins Barrow Toronto LLP	8-K/A-1	2/15/12	16.3
16.2	Letter from Schwartz Levitsky Feldman LLP	8-K/A-3	8/13/14	16.1
21.1	List of Subsidiary Companies	10-K	3/31/10	21.1
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				X
99.1	Audit Committee Charter	10-K	4/15/08	99.1
99.2	Disclosure Committee Charter	10-K	4/15/08	99.2
99.3	FCPA Code	S-1	8/25/14	99.3
99.4	Letter from Ministry of Health	8-K	6/08/15	99.2
99.5	Letter from Minister of Health and Public Hygiene	8-K	6/24/15	99.2

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		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
101.INS	XBRL Instance Document				X
101.SCH	XBRL Taxonomy Extension – Schema				X
101.CAL	XBRL Taxonomy Extension – Calculations				X
101.DEF	XBRL Taxonomy Extension – Definitions				X
101.LAB	XBRL Taxonomy Extension – Labels				X
101.PRE	XBRL Taxonomy Extension – Presentation				X

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 14^th day of January, 2021.

KALLO INC.

KALLO INC.
(The “Registrant”)
BY:	JOHN CECIL
	John Cecil
	President, Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, and a Chairman of the Board of Directors

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EXHIBIT INDEX

The following documents are included herein:

		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
2.1	Articles of Merger.	8-K	1/21/11	2.1
3.1	Articles of Incorporation.	SB-2	3/05/07	3.1
3.2	Bylaws.	SB-2	3/05/07	3.2
3.3	Amended Articles of Incorporation (11/23/2015).	8-K	12/02/15	3.1
4.1	Specimen Stock Certificate.	SB-2	3/05/07	4.1
10.1	Agreement with Rophe Medical Technologies Inc. dated December 11, 2009.	10-K	3/31/10	10.2
10.2	Amended Agreement with Rophe Medical Technologies Inc. dated December 18, 2009.	10-K	3/31/10	10.3
10.3	Amended Agreement with Rophe Medical Technologies Inc. dated March 16, 2010.	10-K	3/31/10	10.4
10.4	Investment Agreement with Kodiak Capital Group, LLC dated October 20, 2014	S-1	10/30/14	10.6
10.5	Amended Agreement with Jarr Capital Corp.	8-K	2/22/11	10.1
10.6	Termination of Employment Agreement with John Cecil	8-K	2/22/11	10.2
10.7	Termination of Employment Agreement with Samuel Baker	8-K	2/22/11	10.4
10.8	Services Agreement with Buchanan Associates Computer Consulting Ltd.	10-K	5/18/11	10.1
10.9	Equipment Lease Agreement with Buchanan Associates Computer Consulting Ltd.	10-K	5/18/11	10.2
10.10	Agreement with Mansfield Communications Inc.	10-K	5/18/11	10.3
10.11	Agreement with Watt International Inc.	10-K	5/18/11	10.4
10.12	Pilot EMR Agreement with Nexus Health Management Inc.	10-K	5/18/11	10.5
10.13	2011 Non-Qualified Stock Option Plan	S-8	6/27/11	10.1
10.14	Multimedia Contractual Agreement with David Miller	8-K	10/28/11	10.1

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		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
10.15	Strategic Alliance Agreement with Petro Data Management Services Limited and Gateway Global Fabrication Ltd.	8-K	11/02/11	10.1
10.16	Independent Contractor Agreement with Savers Drug Mart	8-K	1/26/12	10.1
10.17	2012 Non-Qualified Stock Option Plan	S-8	9/06/12	10.1
10.18	Memorandum of Offering with Ministry of Health of Republic of Ghana	S-1/A-3	6/26/13	10.32
10.19	Addendum to Investment Agreement with Kodiak	S-1/A-4	7/31/13	10.33
10.20	Second Addendum to Investment Agreement with Kodiak	S-1	8/25/14	10.34
10.21	Email from Kodiak	S-1/A-1	9/24/14	10.35
10.22	Email from Kodiak	S-1/A-1	9/24/14	10.36
14.1	Code of Ethics	S-1	8/25/14	14.2
16.1	Letter from Collins Barrow Toronto LLP	8-K/A-1	2/15/12	16.3
16.2	Letter from Schwartz Levitsky Feldman LLP	8-K/A-3	8/13/14	16.1
21.1	List of Subsidiary Companies	10-K	3/31/10	21.1
31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002				X
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				X
99.1	Audit Committee Charter	10-K	4/15/08	99.1
99.2	Disclosure Committee Charter	10-K	4/15/08	99.2
99.3	FCPA Code	S-1	8/25/14	99.3
99.4	Letter from Ministry of Health	8-K	6/08/15	99.2
99.5	Letter from Minister of Health and Public Hygiene	8-K	6/24/15	99.2

 -27-

		Incorporated by reference			Filed
Exhibit	Document Description	Form	Date	Number	herewith
101.INS	XBRL Instance Document				X
101.SCH	XBRL Taxonomy Extension – Schema				X
101.CAL	XBRL Taxonomy Extension – Calculations				X
101.DEF	XBRL Taxonomy Extension – Definitions				X
101.LAB	XBRL Taxonomy Extension – Labels				X
101.PRE	XBRL Taxonomy Extension – Presentation				X

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EX-31.1

Exhibit 31.1

SARBANES-OXLEY SECTION 302(a) CERTIFICATION

I, John Cecil, certify that:

1. I have reviewed this Form 10-Q for the period ending March 31, 2019 of Kallo Inc.;

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

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

4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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

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

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

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

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

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

Date:	January 14, 2021	JOHN CECIL
		John Cecil
		Principal Executive Officer and Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Kallo Inc. (the "Company") on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date here of (the "report"), I, John Cecil, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 14^th day of January, 2021.

JOHN CECIL

John Cecil

Chief Executive Officer and Chief Financial Officer

XML

Cover - shares	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2019
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Current Fiscal Year End Date	--12-31
Entity File Number	98-0542529
Entity Registrant Name	Kallo Inc.
Entity Central Index Key	0001389034
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	255 Duncan Mill Road,
Entity Address, Address Line Two	Suite 504,
Entity Address, Address Line Three	Toronto
Entity Address, State or Province	ON
Entity Address, Country	CA
Entity Address, Postal Zip Code	M3B 3H9
City Area Code	416
Local Phone Number	246-9997
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	true
Entity Common Stock, Shares Outstanding		1,147,698,199

XML

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current Assets:
Total Current Assets
TOTAL ASSETS	0	0
Current Liabilities:
Accounts payable and accrued liabilities	3,426,576	3,307,421
Convertible loans payable - third parties	246,496	240,369
Short term loans payable	65,031	38,355
Convertible loans payable - related parties	842,003	820,688
Liability for issuable shares	1,724,290	149,240
Total Current Liabilities	6,304,396	4,556,073
TOTAL LIABILITIES	6,304,396	4,556,073
Commitments and Contingencies (Note 7)
Stockholders' Deficiency
Preferred stock, $0.00001 par value, 100,000,000 shares authorized, 95,000,000 Series A preferred shares issued and outstanding	950	950
Common stock, $0.00001 par value, 1,150,000,000 shares authorized, 1,147,698,199 and 1,147,698,199 shares issued and outstanding, respectively.	11,478	11,478
Additional paid-in capital	41,920,116	41,920,116
Assignment of liabilities	(3,494,442)	(3,550,857)
Accumulated deficit	(44,742,498)	(42,937,760)
Total Stockholders' Deficiency	(6,304,396)	(4,556,073)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$ 0	$ 0

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, authorized	100,000,000	100,000,000
Preferred stock, issued	95,000,000	95,000,000
Preferred stock, outstanding	95,000,000	95,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, authorized	1,150,000,000	1,150,000,000
Common stock, issued	1,147,698,199	1,147,808,198
Common Stock, outstanding	1,147,698,199	1,147,808,198

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Expenses
General and administration	$ 1,711,474	$ 122,820
Selling and marketing	1,086
Operating loss	(1,712,560)	(122,820)
Interest and financing costs	(27,442)	(27,442)
Foreign exchange (loss) gain	(64,736)	83,934
Net Loss	$ (1,804,738)	$ (66,328)
Basic and diluted net loss per share	$ 0	$ 0
Weighted average shares used in calculating basic and diluted net loss per share	1,147,698,199	1,135,699,249

XML

Consolidated Statements of Changes in Stockholders' Deficiency Equity (Unaudited) - 3 months ended Mar. 31, 2019 - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Assignment Of Liabilities	Deficit Accumulated During the Development Stage	Total
Beginning balance at Dec. 31, 2018	$ 950	$ 11,478	$ 41,920,116	$ (3,550,857)	$ (42,937,760)	$ (4,556,073)
Beginning balance, Shares at Dec. 31, 2018	95,000,000	1,147,698,199
Cash settlement of liabilities				56,415		56,415
Net Loss					(1,804,738)	(1,804,738)
Ending balance at Mar. 31, 2019	$ 950	$ 11,478	$ 41,920,116	$ (3,494,442)	$ (44,742,498)	$ (6,304,396)
Ending balance, Shares at Mar. 31, 2019	95,000,000	1,147,698,199

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,804,738)	$ (66,328)
Adjustment to reconcile net loss to cash used in operating activities:
Stock based compensation	1,574,480
Interest and penalties	27,442	27,441
Unrealized foreign exchange loss (gain)	64,984	(85,063)
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable and accrued liabilities	111,489	123,950
NET CASH USED IN OPERATING ACTIVITIES	(26,343)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short term loans payable	26,343
NET CASH PROVIDED BY FINANCING ACTIVITIES	26,343
NET (DECREASE) INCREASE IN CASH
CASH - BEGINNING OF PERIOD
CASH - END OF PERIOD
SUPPLEMENTAL CASH FLOW INFORMATION
Income tax paid
Interest paid
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Settlement of accounts payable by FE Pharmacy, Inc.	$ 56,415	$ 29,086

XML

BUSINESS AND GOING CONCERN

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BUSINESS AND GOING CONCERN

NOTE 1 – BUSINESS AND GOING CONCERN

Organization

Kallo Inc. ("Kallo" or the "Company") develops customized health care solutions designed to improve or enhance the delivery of care in the countries and regions we serve.

Going Concern

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The amounts of assets and liabilities in the consolidated financial statements do not purport to represent realizable or settlement values. The Company has incurred operating losses since inception and has an accumulated deficit and a working capital deficit at March 31, 2019. The Company is expected to incur additional losses as it executes its go to market strategy. This raises substantial doubt about the Company’s ability to continue as a going concern.

The Company has met its historical working capital requirements from the sale of common shares and short term loans. In order to not burden the Company, the officer/stockholder has agreed to provide funding to the Company to pay its annual audit fees, filing costs and legal fees as long as the board of directors deems it necessary. However, there can be no assurance that such financial support shall be ongoing or available on terms or conditions acceptable to the Company. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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ACCOUNTING POLICIES AND OPERATIONS

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

ACCOUNTING POLICIES AND OPERATIONS

NOTE 2 – ACCOUNTING POLICIES AND OPERATIONS

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X related to smaller reporting companies. These unaudited consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes, which are included as part of the Company’s Form 10-K filed with the SEC for the year ended December 31, 2018.

Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited consolidated financial statements for fiscal year ended December 31, 2018 as reported in the 10-K have been omitted. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This pronouncement is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company adopted this new standard on January 1, 2019 using the modified retrospective transition approach but it did not have a material impact on the consolidated financial statements as there was no lease in existence.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Non-employee Share-Based Payment Accounting, which is part of the FASB’s simplification initiative to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This update provides consistency in the accounting for share-based payments to nonemployees with that of employees. The Company has adopted ASU 2018-07 in the first quarter of 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s financial statements and related disclosures.

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COMMON STOCK

3 Months Ended

Mar. 31, 2019

Stockholders' Equity Note [Abstract]

COMMON STOCK

NOTE 3 – COMMON STOCK

During the three months ended March 31, 2019, there were no movements in share capital issued and outstanding.

On April 8, 2017, the Company entered into an agreement with FE Pharmacy Inc., a company controlled by a shareholder of Kallo, and a related party, whereby in consideration for the issuance of 475,000,000 common stock of Kallo, FE Pharmacy Inc. assumed and will pay all of the Company’s outstanding indebtedness as at April 7, 2017. The 475,000,000 shares issuable to FE Pharmacy Inc. has been valued at the book value of the total liabilities assigned to FE Pharmacy Inc. of $4,135,037. The assignment of the liabilities to FE Pharmacy Inc. has been recorded as a receivable in the equity section of the consolidated balance sheet and will be reduced as the liabilities are settled by FE Pharmacy Inc. During the three months ended March 31, 2019, the assignment of liabilities amount has been reduced by $56,415 cash settlement of accounts payable.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 4 – RELATED PARTY TRANSACTIONS

During the quarter ended March 31, 2019, the Board of Directors approved the issuance of 57,000,000 shares to directors and shareholders of the Company as stock-based compensation and they were valued at $1,373,700. These shares will be issued after the Company is able to increase its authorized number of common shares.

During the quarter ended March 31, 2019, the Company designated 5,000,000 of is preferred stock as Series B preferred stock, each of which has 1,000 votes and are not convertible. The Company, will not, without the approval or express written consent of the all the holders of the Series B preferred stock (i) establish, create, authorize or approve the issuance of any series or class of preferred stock (ii) change any of the rights, privileges or preferences of the Series B preferred stock or (iii) redeem the Series B preferred stock..

During the quarter ended March 31, 2019, the Board of Directors approved the issuance of 5,000,000 Series B preferred shares to a director as compensation for services rendered and their fair value were deemed to be $201,350 based on the voting rights of the preferred shares relative to the fair value of the Company at the date of the approved issuance. These shares will be issued after the Company becomes current on all its filings requirements.

Included in liability for issuable shares is 3,731,005 common shares valued at $149,240 and approved for issuance to a family of the controlling shareholder of FE Pharmacy Inc as compensation during 2018 which will be issued after the Company is able to increase its authorized number of common shares. The transfer agent has erroneously issued these shares in spite of the Company’s instructions to wait for the increase in authorized number of common shares.

Included in accounts payable and accrued liabilities is an amount of $1,006,306 (December 31, 2018 - $908,004) due to directors of the Company as of March 31, 2019.

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CONVERTIBLE LOANS PAYABLE

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE LOANS PAYABLE

NOTE 5 – CONVERTIBLE LOANS PAYABLE

	March 31, 2019		December 31, 2018
Convertible promissory notes bearing interest at 15% per annum – third parties	$	246,496	$	240,369
Convertible promissory notes bearing interest at 15% per annum – related parties		842,003		820,688
	$	1,088,499	$	1,061,057

The Convertible loans payable bear 15% interest per annum and are convertible at a fixed price at any time during their 1 year term.  The Company has the option to pay the note at any time.  The Company analyzed the conversion option for derivative accounting consideration under ASC Topic 815-40, Derivatives and Hedging – Contract in Entity's Own Stock and concluded that the embedded conversion was a derivative but the fair value of the feature was zero. The total outstanding notes is $1,088,499, including accrued interest, of which $842,003 is to from related parties. Interest of $27,442 on the convertible loans payable are included in net finance charge for the three months ended March 31, 2019 included in the consolidated statement of operations. All of the above convertible loans payable were in default as of March 31, 2019.

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SHORT TERM LOANS PAYABLE

3 Months Ended

Mar. 31, 2019

Short-term Debt, Other Disclosures [Abstract]

SHORT TERM LOANS PAYABLE

NOTE 6 – SHORT TERM LOANS PAYABLE

	March 31, 2019		December 31, 2018
Non-interest bearing short term funding from third party	$	16,292	$	16,431
Non-interest bearing short term funding from related party		48,739		21,924
	$	65,031	$	38,355

As of March 31, 2019, the balance of $65,031 represented short term funding provided by a third party and a related party which are non-interest bearing, unsecured and have no fixed repayment date.  The loan from third party in Canadian dollars is $21,772 which is subject to revaluation at the end of each quarter.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 7 – COMMITMENTS AND CONTINGENCIES

Contingencies

On April 21, 2017, an ex-employee of Kallo obtained a judgement ordering Kallo to pay Canadian $ 135,959 for unpaid wages and expenses relating to services performed in 2016. The full amount has been accrued for in the financial statements of Kallo.

On October 24, 2016, a consultant obtained a judgement ordering Kallo to pay Canadian $34,924 for unpaid fees. The full amount has been accrued for in the financial statements of Kallo.

On October 6, 2017, Thornley Fallis Communications Inc. ("Thornley") commenced a third party claim against Kallo concerning monies that Kallo allegedly owed to Thornley for redesign of a website and public relation services. Thornley is seeking damages in the amount of Canadian $169,345 plus interest on the amounts outstanding and indemnification of the costs of the action. An amount of Canadian $134,960 has been accrued for in the financial statements of Kallo.

There is also a claim by Commercial Credit Adjusters on behalf of Northwest Company for payment of Canadian $34,000. An amount of Canadian $24,016 has been accrued for in the financial statements of Kallo. Negotiations are in process for the settlement of this debt for a lump sum.

Canada Revenue Agency has assessed the Company for unpaid Canadian $112,243 as at March 31, 2019 representing unremitted employee source deductions and related penalties and interest, the full amount of which has been accrued in the financial statements of Kallo.

Responsibility for payments of the above claims has been assumed by FE Pharmacy Inc. under the terms of the agreement mentioned in Note 3.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2019

Subsequent Events

SUBSEQUENT EVENTS

NOTE 8 – SUBSEQUENT EVENTS

After March 31, 2019, accounts payable for a total of $39,388 were settled in cash by FE Pharmacy Inc. under the agreement mentioned in Note 3.

On December 6, 2019 the Company entered into a Joint Venture Corporation Agreement (the “Agreement”) with Techno-Investment Module, Ltd, a corporation domiciled in the Republic of Belarus (“TIM”) and Vintage Ventures Limited, a company domiciled in the Republic of Ghana (“Vintage”) for the purpose of pursuing certain commercial projects in the Republic of Ghana under the auspices of Ghana’s Petroleum Hub. However, subsequently, in light of certain unanticipated difficulties, the Company was persuaded that the challenges of undertaking transactions in the current and unprecedented COVID-19 environment present serious additional uncertainties together with serious and protracted risks, particularly in the factual context present here. Thus, the Company may not be able to proceed with any one or all of the contemplated transactions as set forth in the Agreement.

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ACCOUNTING POLICIES AND OPERATIONS (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies And Operations

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X related to smaller reporting companies. These unaudited consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes, which are included as part of the Company’s Form 10-K filed with the SEC for the year ended December 31, 2018.

Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited consolidated financial statements for fiscal year ended December 31, 2018 as reported in the 10-K have been omitted. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited consolidated financial statements.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued an ASU related to the accounting for leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. This pronouncement is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The Company adopted this new standard on January 1, 2019 using the modified retrospective transition approach but it did not have a material impact on the consolidated financial statements as there was no lease in existence.

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvement to Non-employee Share-Based Payment Accounting, which is part of the FASB’s simplification initiative to maintain or improve the usefulness of the information provided to the users of financial statements while reducing cost and complexity in financial reporting. This update provides consistency in the accounting for share-based payments to nonemployees with that of employees. The Company has adopted ASU 2018-07 in the first quarter of 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s financial statements and related disclosures.

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CONVERTIBLE LOANS PAYABLE (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Summary of convertible loans payable

	March 31, 2019		December 31, 2018
Convertible promissory notes bearing interest at 15% per annum – third parties	$	246,496	$	240,369
Convertible promissory notes bearing interest at 15% per annum – related parties		842,003		820,688
	$	1,088,499	$	1,061,057

XML

SHORT TERM LOANS PAYABLE (Tables)

3 Months Ended

Mar. 31, 2019

Short-term Debt, Other Disclosures [Abstract]

Summary of short term loans payable

	March 31, 2019		December 31, 2018
Non-interest bearing short term funding from third party	$	16,292	$	16,431
Non-interest bearing short term funding from related party		48,739		21,924
	$	65,031	$	38,355

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RELATED PARTY TRANSACTIONS (Details Narrative) - Director [Member]	3 Months Ended
	Mar. 31, 2019 USD ($) shares
Preferred Stock | Series B Preferred Stock [Member]
Shares issued to directors and employees, Value | $	$ 201,350
Shares issued to directors and employees, Shares | shares	5,000,000
Common Stock
Shares issued to directors and employees, Value | $	$ 1,373,700
Shares issued to directors and employees, Shares | shares	57,000,000

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CONVERTIBLE LOANS PAYABLE (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Convertible loans payable	$ 1,088,499	$ 1,061,057
Convertible promissory notes bearing interest at 15% per annum - related parties
Convertible loans payable	842,003	820,688
Convertible promissory notes bearing interest at 15% per annum - third party
Convertible loans payable	$ 246,496	$ 240,369

XML

CONVERTIBLE LOANS PAYABLE (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Debt Disclosure [Abstract]
Convertible loans payable	$ 1,088,499		$ 1,061,057
Interest expense on convertible loans payable	842,003
Interest and Financing Cost	$ 27,442	$ 27,442

XML

SHORT TERM LOANS PAYABLE (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Short term loans payable	$ 65,031	$ 38,355
Non-interest bearing short term funding from related parties
Short term loans payable	48,739	21,924
Non-interest bearing short term funding from third parties
Short term loans payable	$ 16,292	$ 16,431

XML

SHORT TERM LOANS PAYABLE (Details Narrative) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Short-term Debt, Other Disclosures [Abstract]
Short term loans payable	$ 65,031	$ 38,355