Delaware
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80-0138937
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(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S.
Employer Identification No.)
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Large
accelerated filer [ ]
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Accelerated
filer [ ]
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Non-accelerated
filer [ ]
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Smaller
reporting company [X]
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(Do not
check if a smaller reporting company)
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Emerging
growth company [ ]
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March
31,
2018
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December
31,
2017
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(unaudited)
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(audited)
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ASSETS
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Current
assets:
|
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Cash
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$16
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$8,317
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Prepaid
expenses
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-
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6,711
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Total current
assets
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16
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15,028
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Fixed assets, net
of accumulated depreciation
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-
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-
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Other
assets:
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Deposits
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669
|
669
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Total other
assets
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669
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669
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Total
assets
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$685
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$15,697
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LIABILITIES
AND STOCKHOLDERS’ EQUITY (DEFICIT)
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Current
liabilities:
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Accounts payable
and accrued expenses
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$905,342
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$840,972
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Related party
accounts payable
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39,988
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57,297
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Accrued interest
payable
|
414,288
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347,069
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Payroll liabilities
payable
|
144,236
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85,786
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Convertible notes
payable, net
|
3,128,127
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2,563,272
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Loan from
shareholder
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40,000
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-
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Notes
payable
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32,279
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-
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Related party
promissory note
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383,771
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383,771
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Total current
liabilities
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5,088,031
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4,278,167
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Total
liabilities
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5,088,031
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4,278,167
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Commitments and
contingencies
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-
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-
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Stockholders’
equity (deficit):
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Preferred stock,
$.001 par value, 20,000,000 shares authorized; 3,204,422 and
3,778,622 shares issued and outstanding, respectively
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3,204
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3,779
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Paid in capital,
preferred stock
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10,311,616
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13,547,780
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Common stock, $.001
par value; 2,000,000,000 shares authorized; 72,067,213 and
65,695,213 shares issued and outstanding, respectively
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72,067
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65,695
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Paid in
capital
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49,715,119
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46,408,443
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Accumulated
deficit
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(65,189,352)
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(64,288,167)
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Total
stockholders’ equity (deficit)
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(5,087,346)
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(4,262,470)
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Total liabilities
and stockholders’ equity (deficit)
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$685
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$15,697
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Three months ended
March 31,
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2018
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2017
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Revenues
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$-
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$4,054
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Operating
expenses
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Sales and marketing
expenses
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10,000
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25,998
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Depreciation and
amortization
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-
|
740
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Professional
fees
|
70,058
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134,604
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Reserved stock
units granted
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52,094
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-
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Stock options
granted
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23,755
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28,240
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Payroll
expenses
|
78,870
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104,780
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Research and
development
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32,814
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-
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General and
administrative expenses
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19,103
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74,407
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Total operating
expenses
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286,694
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368,769
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Operating
loss
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(286,694)
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(364,715)
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Non-operating
income (expense)
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Interest
expense
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(632,074)
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(527,951)
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Net gain on sale of
assets
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-
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2,800
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Grants
received
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17,583
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-
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Net gain (loss) on
debt extinguishment
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-
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147,710
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Net gain (loss) on
derivative liability
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-
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325,390)
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Non-operating
income (expense), net
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(614,491)
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(52,051)
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Income (Loss)
before Income Taxes
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(901,185)
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(416,766)
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Income Tax
Provision
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-
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-
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Net Income
(Loss)
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$(901,185)
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$(416,766)
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Basic and Diluted
Income (Loss) per Common Share
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$(0.014)
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$(0.011)
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Basic and diluted
weighted average common shares outstanding
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66,514,118
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38,021,103
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Three months ended
March 31,
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2018
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2017
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CASH
FLOW FROM OPERATING ACTIVITIES:
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Net
Loss
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$(901,185)
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$(416,766)
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Adjustments to
reconcile net loss to net cash used by operating
activities:
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Depreciation of
fixed assets
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-
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740
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Amortization of
convertible debt discount
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564,865
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462,928
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Gain on sale of
assets
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-
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(2,800)
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Common stock issued
for services
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449
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-
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Stock options and
warrants issued for services
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23,755
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28,240
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Reserved stock
units issued for services
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52,094
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Gain (loss) on
derivative liability
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-
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(325,390)
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Loss on settlement
of debt
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-
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(147,711)
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Changes in
operating assets and liabilities:
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Prepaid
expenses
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6,711
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11,990
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Accounts
payable
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96,650
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109,110
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Accounts payable
from related parties
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(17,309)
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-
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Payroll
liabilities
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58,450
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(57,424)
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Accrued
interest
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67,219
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61,425
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Net cash used by
operating activities
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(48,301)
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(275,658)
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CASH
FLOWS FROM INVESTING ACTIVITIES
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Sale of fixed
assets
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-
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2,800
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Net cash from
investing activities
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-
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2,800
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CASH
FLOWS FROM FINANCING ACTIVITIES:
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Proceeds from
shareholder advances
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40,000
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137,000
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Proceeds from
convertible debt
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-
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131,669
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Net cash provided
by financing activities
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40,000
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268,669
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Net decrease in
cash
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(8,301)
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(4,189)
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Cash, beginning of
period
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8,317
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27,889
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CASH,
END OF PERIOD
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$16
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$23,700
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Supplemental
disclosures of cash flow information:
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Cash paid for
interest
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$-
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$-
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Cash paid for
income taxes
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$-
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$-
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March
31,
2018
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December
31,
2017
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Production
equipment
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$15,182
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$15,182
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Less accumulated
depreciation
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(15,182)
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(15,182)
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$-
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$-
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March 31,
2018
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December 31,
2017
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||
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Principal(net)
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Accrued
Interest
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Principal
(net)
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Accrued
Interest
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July and August
2012 $1,060,000 Notes convertible into common stock at $4.60 per
share, 12% interest, due December 2013 and January
2014
|
$45,000
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$30,546
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$45,000
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29,218
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May through October
2015 $605,000 Notes convertible into preferred stock at $1 per
share, 8-10% interest, due September 30, 2015
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-
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17,341
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-
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17,341
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October through
December 2015 $613,000 Notes convertible into preferred stock at $1
per share, 8% interest, due June 30, 2016, net of debt discount of
$0 and $0, respectively
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-
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5,953
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-
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5,953
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January through
March 2016 $345,000 Notes convertible into preferred stock at $1
per share, 8% interest, due June 30, 2016
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-
|
696
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-
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696
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May 2017 $2,378,155
Notes convertible into common stock after April 15, 2018 at a $0.20
conversion price (subject to adjustment), 7.5% interest, due May
2018, net of debt discounts of $164,720 and $544,845,
respectively
|
2,213,435
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178,304
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1,833,310
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178,304
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May 2017 $820,420
Notes convertible into common stock after April 15, 2018 at a $0.12
conversion price (subject to adjustment), 7.5% interest, due May
2018, net of debt discounts of $44,543 and $147,335,
respectively
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603,495
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52,832
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500,703
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52,831
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May 2017 $110,312
Notes convertible after April 15, 2018 into common stock at a $0.13
conversion price (subject to adjustment), 7.5% interest, due May
2018, net of debt discounts of $7,584 and $25,085,
respectively
|
102,728
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15,773
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85,227
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15,773
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November 2017
$166,666 Note convertible at maturity or upon the issuance of a
variable security at a $0.12 conversion price (subject to
adjustment), with a one-time interest charge of 10%, due April 15,
2018, net of debt discounts of $10,666 and $74,662,
respectively
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156,000
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71,667
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92,004
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16,667
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January 2018
$32,279 one year Promissory Note, 18% interest
|
32,279
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1,429
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-
|
-
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January 2018
$40,000 shareholder advance with no stated terms
|
40,000
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-
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-
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-
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|
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Penalties on notes
in default
|
7,470
|
-
|
7,028
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-
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Total Convertible
Notes Payable, Net
|
$3,200,407
|
$374,541
|
$2,563,272
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$316,784
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|
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Weighted
|
|
Weighted
|
|
|
Options
Outstanding
|
Average
|
|
Average
|
|
|
Number
|
Exercise
|
Remaining
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Aggregate
|
Exercise
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|
Of
|
Price
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Contractual
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Intrinsic
|
Price
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|
Shares
|
Per
Share
|
Life
|
Value
|
Per
Share
|
|
|
|
|
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|
Balance at December
31, 2017
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1,222,500
|
$0.50-15
|
2.91
years
|
$-
|
$1.08
|
|
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|
|
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|
Options
granted
|
-
|
$-
|
-
|
|
$-
|
Options
exercised
|
-
|
$-
|
-
|
|
$-
|
Options
expired
|
-
|
$-
|
-
|
|
$-
|
|
|
|
|
|
|
Balance at March
31, 2018
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1,222,500
|
$0.50-15
|
2.66
years
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$-
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$1.08
|
|
|
|
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Exercisable at
March 31, 2018
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1,162,966
|
$0.50-15
|
2.64
years
|
$-
|
$1.10
|
|
|
Weighted
|
|
Weighted
|
|
|
Warrants
Outstanding
|
Average
|
|
Average
|
|
|
Number
|
Exercise
|
Remaining
|
Aggregate
|
Exercise
|
|
Of
|
Price
|
Contractual
|
Intrinsic
|
Price
|
|
Shares
|
Per
Share
|
Life
|
Value
|
Per
Share
|
|
|
|
|
|
|
Balance at December
31, 2017
|
304,200
|
$0.40-10
|
1.19
years
|
$-
|
$2.63
|
|
|
|
|
|
|
Warrants
granted
|
-
|
$-
|
-
|
|
$
|
Warrants
exercised
|
-
|
$-
|
-
|
|
$
|
Warrants
expired/cancelled
|
-
|
$-
|
-
|
|
$
|
|
|
|
|
|
|
Balance at March
31, 2018
|
304,200
|
$0.40-10
|
.94
years
|
$-
|
$2.63
|
|
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|
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Exercisable at
March 31, 2018
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304,200
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$0.40-10
|
.94
years
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$-
|
$2.63
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|
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Weighted
|
|
Number
|
Average
|
|
Of
|
Grant
Date
|
|
Shares
|
Fair
Value
|
|
|
|
Balance at December
31, 2017
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5,740,000
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$0.07
|
|
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|
RSU’s
granted
|
-
|
$-
|
RSU’s
vested
|
(620,000)
|
$-
|
RSU’s
forfeited
|
-
|
$-
|
|
|
|
Balance at March
31, 2018
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5,120,000
|
$0.07
|
|
|
Three Months
Ended
March 31,
2018
|
Three Months
Ended
March 31,
2017
|
Revenues
|
$-
|
$4,054
|
Operating
expenses
|
(286,694)
|
(368,769)
|
Operating
loss
|
(286,694)
|
(364,715)
|
Non-operating
income (expense):
|
|
|
Gain on sale of
assets
|
-
|
2,800
|
Gain (loss) on debt
extinguishment
|
-
|
147,710
|
Gain (loss) on
derivative liability
|
-
|
325,390
|
Grants
received
|
17,583
|
-
|
Interest
expense
|
(632,074)
|
(527,951)
|
Net income
(loss)
|
$(901,185)
|
$(416,766)
|
|
Three months
ended
March 31,
2018
|
Three months
ended
March 31,
2017
|
Depreciation and
amortization expense
|
$-
|
$740
|
Professional
fees
|
70,058
|
134,604
|
Reserved stock
units granted
|
52,094
|
-
|
Stock options
granted
|
23,755
|
28,240
|
Payroll
expenses
|
78,870
|
104,780
|
Research and
development
|
32,814
|
-
|
General and
administrative expenses
|
19,103
|
74,407
|
Sales and marketing
expense
|
10,000
|
25,998
|
|
$286,694
|
$368,769
|
|
Three months
ended
March 31,
2018
|
Three months
ended
March 31,
2017
|
Interest
expense
|
$(632,074)
|
$(527,951)
|
Net gain on sale of
assets
|
-
|
2,800
|
Grants
received
|
17,583
|
-
|
Net gain (loss) on
debt extinguishment
|
-
|
147,710
|
Gain (loss) on
derivative liability
|
-
|
325,390
|
|
$(614,491)
|
$(52,051)
|
|
Exhibit
|
|
|
Number
|
|
Description
|
|
|
|
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes
– Oxley Act of 2002
|
|
|
|
|
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes
– Oxley Act of 2002
|
|
|
|
|
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to
18 U.S.C. Section 1350
|
|
|
|
|
101.INS
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|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Vivos
Inc.
|
|
|
|
|
Date:
May 22, 2018
|
By:
|
/s/ Michael Korenko
|
|
Name:
|
Michael
K. Korenko
|
|
Title:
|
Chief
Executive Officer
|
|
|
(Principal
Executive Officer)
|
Date:
May 22, 2018
|
By:
|
/s/ L. Bruce Jolliff
|
|
Name:
|
L.
Bruce Jolliff
|
|
Title:
|
Chief
Financial Officer
|
|
|
(Principal
Financial and Accounting Officer)
|
/s/ Michael K. Korenko
|
|
Michael
K. Korenko
|
|
Chief
Executive Officer
|
|
(Principal
Executive Officer)
|
|
/s/ L. Bruce Jolliff
|
|
L.
Bruce Jolliff
|
|
Chief
Financial Officer
|
|
(Principal
Financial Officer)
|
|
|
Date:
May 22, 2018
|
|
|
|
|
|
/s/ Michael K. Korenko
|
|
Name:
|
Michael
K. Korenko
|
|
Title:
|
Chief
Executive Officer
|
|
|
/s/ L. Bruce Jolliff
|
|
Name:
|
L.
Bruce Jolliff
|
|
Title:
|
Chief
Financial Officer
|
|
|
|
|
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
May 14, 2018 |
|
Document And Entity Information | ||
Entity Registrant Name | VIVOS INC | |
Entity Central Index Key | 0001449349 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 80,897,370 | |
Trading Symbol | RDGL | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2018 |
Condensed Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ .001 | $ .001 |
Preferred stock, authorized | 20,000,000 | 20,000,000 |
Preferred stock, issued | 3,204,422 | 3,778,622 |
Preferred stock, outstanding | 3,204,422 | 3,778,622 |
Common stock, par value | $ .001 | $ 0.001 |
Common stock, authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, issued | 72,067,213 | 65,695,213 |
Common stock, outstanding | 72,067,213 | 65,695,213 |
Basis of Presentation and Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | The accompanying condensed financial statements of Vivos Inc. (the “Company”) have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures required by accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations of the Company for the period presented. The results of operations for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for any future period or the fiscal year ending December 31, 2018 and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on April 2, 2018.
In April of 2017, the Company filed a Certificate of Merger with the Delaware Division of Corporations in order to merge the Company’s wholly-owned subsidiary, IsoPet Solutions Corporation, with and into the Company. The Company therefore no longer prepares Consolidated Financial Statements.
Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Fair Value of Financial Instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2018 and December 31, 2017, the balances reported for cash, prepaid expenses, accounts receivable, accounts payable, and accrued expenses, approximate the fair value because of their short maturities.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
Reclassifications
Certain account balances from prior periods have been reclassified in the current period financial statements so as to conform to current period classifications.
Recent Accounting Pronouncements
There are no recently issued accounting pronouncements that the Company has not yet adopted that they believe are applicable or would have a material impact on the financial statements of the Company.
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Going Concern |
3 Months Ended |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has suffered recurring losses and used significant cash in support of its operating activities and the Company’s cash position is not sufficient to support the Company’s operations. Research and development of the Company’s brachytherapy product line has been funded with proceeds from the sale of equity and debt securities as well as a series of grants. The Company requires funding of approximately $1.5 million annually to maintain current operating activities. Over the next 12 to 24 months, the Company believes it will cost approximately $5.0 million to $10.0 million to fund: (1) the FDA approval process and initial deployment of the brachytherapy products, and (2) initiate regulatory approval processes outside of the United States. The continued deployment of the brachytherapy products and a worldwide regulatory approval effort will require additional resources and personnel. The principal variables in the timing and amount of spending for the brachytherapy products in the next 12 to 24 months will be the FDA’s classification of the Company’s brachytherapy products as Class II or Class III devices (or otherwise) and any requirements for additional studies which may possibly include clinical studies. Thereafter, the principal variables in the amount of the Company’s spending and its financing requirements would be the timing of any approvals and the nature of the Company’s arrangements with third parties for manufacturing, sales, distribution and licensing of those products and the products’ success in the U.S. and elsewhere. The Company intends to fund its activities through strategic transactions such as licensing and partnership agreements or additional capital raises.
Following receipt of required regulatory approvals and financing, in the U.S., the Company intends to outsource material aspects of manufacturing, distribution, sales and marketing. Outside of the U.S., the Company intends to pursue licensing arrangements and/or partnerships to facilitate its global commercialization strategy.
In the longer-term, subject to the Company receiving adequate funding, regulatory approval for RadioGel™ and other brachytherapy products, and thereafter being able to successfully commercialize its brachytherapy products, the Company intends to consider resuming research efforts with respect to other products and technologies intended to help improve the diagnosis and treatment of cancer and other illnesses
Based on the Company’s financial history since inception, its auditor has expressed substantial doubt as to the Company’s ability to continue as a going concern. The Company has limited revenue, nominal cash, and has accumulated deficits since inception. If the Company cannot obtain sufficient additional capital, the Company will be required to delay the implementation of its business strategy and may not be able to continue operations.
As of March 31, 2018, the Company has $16 cash on hand. There are currently commitments to vendors for products and services purchased, plus, the employment agreements of the CEO and CFO of the Company that will necessitate liquidation of the Company if it is unable to raise additional capital. The current level of cash is not enough to cover the fixed and variable obligations of the Company.
Assuming the Company is successful in the Company’s sales/development effort, it believes that it will be able to raise additional funds through strategic agreements or the sale of the Company’s stock to either current or new stockholders. There is no guarantee that the Company will be able to raise additional funds or to do so at an advantageous price.
The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. The Company plans to seek additional funding to maintain its operations through debt and equity financing and to improve operating performance through a focus on strategic products and increased efficiencies in business processes and improvements to the cost structure. There is no assurance that the Company will be successful in its efforts to raise additional working capital or achieve profitable operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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Fixed Assets |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||
Fixed Assets | Fixed assets consist of the following at March 31, 2018 and December 31, 2017:
Depreciation expense for the above fixed assets for the three months ended March 31, 2018 and 2017, respectively, was $0 and $740.
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Convertible Notes Payable
In March 2017, the Company combined Outstanding Notes owed to a director and major stockholder, along with $51,576 of accrued interest payable, into one promissory note (the “Related Party Note”). The Related Party Note accrues interest at a rate of 10% and was due and payable on December 31, 2017. The note holder agreed to an extension of the due date until May 9, 2018. As of March 31, 2018 and December 31, 2017 the balance of the Related Party Note was $383,771 and $383,771, respectively, and the accrued interest payable on the Related Party Note was $38,693 and $29,230, respectively.
Preferred Shares Issued to Officers
During 2017, the Company issued 100,000 shares of its Series A Preferred to its CEO, in exchange for $32,308 of accrued payroll, $67,692 of accounts payable, and wages valued at $199,690.
During 2017, the Company issued 83,279 shares of its Series A Preferred to its CFO, in exchange for $83,280 of accrued payroll and wages valued at $166,299.
Rent Expenses
The Company was renting office space from a significant shareholder and director of the Company on a month-to-month basis with a monthly payment of $1,500. This rental agreement was terminated as of April 1, 2017.
Rental expense was $0 and $4,500 for each of the three months ended March 31, 2018 and 2017 and is recorded in general and administrative expense. |
Convertible Notes Payable |
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Convertible Notes Payable | As of March 31, 2018 and December 31, 2017 the Company had the following convertible notes outstanding:
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Common Stock Options and Warrants |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Options and Warrants | Common Stock Options
The Company recognizes in the financial statements compensation related to all stock-based awards, including stock options and warrants, based on their estimated grant-date fair value. The Company has estimated expected forfeitures and is recognizing compensation expense only for those awards expected to vest. All compensation is recognized by the time the award vests.
The following schedule summarizes the changes in the Company’s stock options:
During the three months ended March 31, 2018 the Company recognized $23,755 worth of stock based compensation related to the vesting of its stock options.
Common Stock Warrants
The following schedule summarizes the changes in the Company’s stock warrants:
Restricted Stock Units
The following schedule summarizes the changes in the Company’s restricted stock units:
During the three months ended March 31, 2018 the Company recognized $52,094 worth of expense related to the vesting of its RSU’s. As of March 31, 2018, the Company had $302,335 worth of expense yet to be recognized for RSU’s not yet vested.
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Stockholders' Equity |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Common Stock
During the three months ending March 31, 2018 the Company issued 10,000 shares of its common stock valued at $449 for services, 5,742,000 shares of its common stock valued at $3,236,738 for conversions of 574,200 shares of Series A Preferred, and 620,000 shares of its common stock valued at $620 in the form of Restricted Stock Units.
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Supplemental Cash Flow Information |
3 Months Ended | ||||
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Mar. 31, 2018 | |||||
Supplemental Cash Flow Elements [Abstract] | |||||
Supplemental Cash Flow Information | During the three months ending March 31, 2018 the Company had the following non-cash investing and financing activities:
Exchanged $32,279 of accounts payable for a one year, 18% Promissory note.
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Effective June 21, 2017, the Company entered into a separation agreement with an individual previously associated with the Company, at times as a consultant and as an employee at other times. Pursuant to the agreement, the Company agreed to pay regular bi-weekly checks beginning July 7, 2017 and ending September 15, 2017, for a total of six checks in the aggregate amount of $28,846. This obligation was fully paid as of September 30, 2017. |
Subsequent Events |
3 Months Ended | ||||||||
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Mar. 31, 2018 | |||||||||
Subsequent Events [Abstract] | |||||||||
Subsequent Events |
The Company has evaluated subsequent events through the date of this filing pursuant to ASC Topic 855 and has determined that, except as disclosed herein, there are no additional subsequent events to disclose.
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Basis of Presentation and Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments, requires disclosure of the fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate that value. As of March 31, 2018 and December 31, 2017, the balances reported for cash, prepaid expenses, accounts receivable, accounts payable, and accrued expenses, approximate the fair value because of their short maturities.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Reclassifications | Certain account balances from prior periods have been reclassified in the current period financial statements so as to conform to current period classifications.
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Recent Accounting Pronouncements | There are no recently issued accounting pronouncements that the Company has not yet adopted that they believe are applicable or would have a material impact on the financial statements of the Company.
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Fixed Assets (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Fixed Assets |
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Convertible Notes Payable (Tables) |
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Schedule of Convertible Notes Payable |
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Common Stock Options and Warrants (Tables) |
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Schedule Summarizes Changes in Stock Option |
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Schedule Summarizes Changes in Stock Warrants |
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Schedule Summarizes Changes in Restricted Stock Units |
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Going Concern (Details Narrative) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash on hand | $ 16 | $ 8,317 |
Fixed Assets (Details) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
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Less accumulated depreciation | $ (15,182) | $ (15,182) |
Net fixed assets | 0 | 0 |
Production Equipment [Member] | ||
Total fixed assets | $ 15,182 | $ 15,182 |
Fixed Assets (Details Narrative) - USD ($) |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 0 | $ 740 |
Related Party Transactions (Details Narrative) - USD ($) |
3 Months Ended | ||
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Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
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Related Party Transactions [Abstract] | |||
Related party promissory note | $ 383,771 | $ 383,771 | |
Accrued interest payable on related party promissory note | 38,693 | $ 29,230 | |
Rental expense | $ 0 | $ 4,500 |
Common Stock Options and Warrants (Details 2) - Restricted Stock Units [Member] |
3 Months Ended |
---|---|
Mar. 31, 2018
$ / shares
shares
| |
Number of RSU's Outstanding, Beginning | shares | 5,740,000 |
Number of RSU's Granted | shares | 0 |
Number of RSU's Vested | shares | (620,000) |
Number of RSU's Forfeited | shares | 0 |
Number of RSU's Outstanding, Ending | shares | 5,120,000 |
Weighted Average Grant Date Fair Value, RSU's Outstanding, Beginning | $ / shares | $ .07 |
Weighted Average Grant Date Fair Value, RSU's Granted | $ / shares | .00 |
Weighted Average Grant Date Fair Value, RSU's Vested | $ / shares | .00 |
Weighted Average Grant Date Fair Value, RSU's Forfeited | $ / shares | .00 |
Weighted Average Grant Date Fair Value, RSU's Outstanding, Ending | $ / shares | $ .07 |
Common Stock Options and Warrants (Details Narrative) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Stock based compensation, options | $ 23,755 | $ 28,240 |
Restricted stock expense | 52,094 | |
Restricted Stock Units [Member] | ||
Stock options expense yet to be recognized | $ 302,335 |
Stockholders' Equity (Details Narrative) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Equity [Abstract] | ||
Common stock issued for services, share | 10,000 | |
Common stock issued for services, value | $ 449 | $ 0 |
Common stock issued for debt conversions, shares | 5,742,000 | |
Common stock issued for debt conversions, value | $ 3,236,738 |
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