10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

COMMISSION FILE NUMBER: 333-208293

Can B Corp.

(Exact name of registrant as specified in its charter)

Florida	20-3624118
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

960 South Broadway, Suite 120

Hicksville, NY 11801

(Address of principal executive offices)

516-595-9544

(Registrant’s telephone number, including area code)

Canbiola, Inc.

(Former name, former address and former fiscal, if changed since last report)

Securities Registered Pursuant to Section 12(b) of the Act:

Tile of each class	Trading Symbol(s)	Name of each exchange on which registered
None	CANB	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

The number of shares of the registrant’s only class of common stock issued and outstanding as of October 29, 2021 is 28,040,528.

Can B Corp.

FORM 10-Q

September 30, 2021

TABLE OF CONTENTS

		Page
		No.
	PART I. - FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets - September 30, 2021 and December 31, 2020	3
	Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2021 and 2020	4
	Consolidated Statement of Stockholders’ Equity - Three and Nine months ended September 30, 2021 and 2020	5
	Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2021 and 2020	6
	Condensed Notes to Unaudited Consolidated Financial Statements.	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	16
Item 3	Quantitative and Qualitative Disclosures About Market Risk.	17
Item 4	Controls and Procedures.	17
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Mine Safety Disclosures	19
Item 5.	Other Information	19
Item 6.	Exhibits	19

2

PART 1 – FINANCIAL INFORMATION

Item 1. Financial Statements

Can B̅ Corp. and Subsidiaries

Consolidated Balance Sheets

	(Unaudited)
	September 30,			December 31,
	2021			2020
Assets
Current assets:
Cash and cash equivalents	$	190,529		$	457,798
Accounts receivable, less allowance for doubtful accounts of $533,300 and $485,848, respectively		3,129,265			2,003,064
Inventory		861,294			344,954
Note receivable		2,898			2,898
Operating lease right-of-use-asset - current		671,954			35,790
Prepaid expenses		324,097			1,209,126
Total current assets		5,180,037			4,053,630
Property and equipment, net		7,338,685			994,979
Other assets:
Deposits		23,287			21,287
Intangible assets, net		702,873			523,009
Goodwill		55,849			55,849
Operating lease right-of-use-asset - noncurrent		1,298,500			22,384
Other noncurrent assets		13,082			20,315
Total other assets		2,093,591			642,844
Total assets	$	14,612,313		$	5,691,453
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	658,084		$	153,640
Accrued expenses		1,907,726			200,495
Due to related party		320,000			-
Notes and loans payable, net		4,147,639			1,827,531
Operating lease liability - current		812,174			43,506
Total current liabilities		7,845,623			2,225,172
Long-term liabilities:
Notes and loans payable, net		-			194,940
Operating lease liability - noncurrent		1,160,915			15,492
Total long-term liabilities		1,160,915			210,432
Total liabilities	$	9,006,538		$	2,435,604
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, authorized 5,000,000 shares:
Series A Preferred stock, no par value: 20 shares authorized, issued and outstanding		5,539,174			5,539,174
Series B Preferred stock, $0.001 par value: 500,000 shares authorized, 0 issued and outstanding		-			-
Series C Preferred stock, $0.001 par value: 2,000 shares authorized, 50 issued and outstanding		-			-
Series D Preferred stock, $0.001 par value: 4,000 shares authorized, 1,950 issued and outstanding		2			-
Common stock, no par value; 1,500,000,000 shares authorized, 27,132,807 and 5,544,590 issued and outstanding at September 30, 2021 and December 31, 2020, respectively		35,952,327			26,111,978
Treasury stock		(572,678	)		(572,678	)
Additional paid-in capital		3,225,461			2,563,399
Accumulated deficit		(38,538,511	)		(30,386,024	)
Total stockholders’ equity		5,605,775			3,255,849
Total liabilities and stockholders’ equity	$	14,612,313		$	5,691,453

See notes to consolidated financial statements

3

Can B̅ Corp. and Subsidiaries

Consolidated Statement of Operations

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Revenues
Product sales	$	1,749,435		$	459,196		$	2,355,231		$	1,233,287
Service revenue		160,937			300			263,847			1,000
Total revenues		1,910,372			459,496			2,619,078			1,234,287
Cost of revenues		540,886			70,381			876,293			239,975
Gross profit		1,369,486			389,115			1,742,785			994,312
Operating expenses		3,893,685			1,161,751			8,645,362			3,998,414
Loss from operations		(2,524,199	)		(772,636	)		(6,902,577	)		(3,004,102	)
Other income (expense):
Other income		-			204			2,935			645
Gain on debt extinguishment		-			-			196,889			-
Interest expense		(707,855	)		(468,799	)		(1,448,650	)		(551,581	)
Other (expense) income		(647	)		10,000			-			(40,000	)
Other expense		(708,502	)		(458,595	)		(1,248,826	)		(590,936	)
Loss before provision for income taxes		(3,232,701	)		(1,231,231	)		(8,151,403	)		(3,595,038	)
Provision for (benefit from) income taxes		(85	)		1,945			1,084			3,170
Net loss	$	(3,232,616	)	$	(1,233,176	)	$	(8,152,487	)	$	(3,598,208	)
Loss per share - basic and diluted	$	(0.11	)	$	(0.37	)	$	(0.36	)	$	(1.16	)
Weighted average shares outstanding - basic and diluted		30,025,766			3,376,610			22,667,619			3,091,866

See notes to consolidated financial statements

4

Can B̅ Corp. and Subsidiaries

Consolidated Statement of Stockholders’ Equity

Three Months Ended September 30, 2021 and 2020

	Series A				Series B				Series C				Series D														Additional
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock					Treasury Stock					Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount		Shares		Amount			Capital		Deficit			Total
Three months ended September 30, 2021
Balance, July 1, 2021		20	$	5,539,174		-	$	-		50	$	-		1,950	$	2		16,943,011		$	30,070,447		543,715	$	(572,678	)	$	3,225,461	$	(35,305,895	)	$	2,956,511
Issuance of common stock for services rendered		-		-		-		-		-		-		-		-		1,035,011			568,776		-		-			-		-			568,776
Issuance of common stock for asset acquisitions		-		-		-		-		-		-		-		-		5,181,999			3,212,840		-		-			-		-			3,212,840
Sale of common stock		-		-		-		-		-		-		-		-		3,591,540			1,960,001		-		-			-		-			1,960,001
Issuance of common stock in lieu of interest payment		-		-		-		-		-		-		-		-		381,247			140,263		-		-			-		-			140,263
Net loss		-		-		-		-		-		-		-		-		-			-		-		-			-		(3,232,616	)		(3,232,616	)
Balance, September 30, 2021		20	$	5,539,174		0	$	-		50	$	-		1,950	$	2		27,132,808		$	35,952,327		543,715	$	(572,678	)	$	3,225,461	$	(38,538,511	)	$	5,605,775
Three months ended September 30, 2020
Balance, July 1, 2020		20	$	5,539,174		-	$	-		-	$	-		-	$	-		3,421,338		$	24,056,211		-	$	-		$	1,075,176	$	(25,726,255	)	$	4,944,306
Issuance of common stock for services rendered		-		-		-		-		-		-		-		-		245,000			85,444		-		-			-		-			85,444
Issuance of common stock in lieu of interest payment		-		-		-		-		-		-		-		-		185,000			77,775		-		-			-		-			77,775
Issuance of common stock for inventory		-		-		-		-		-		-		-		-		478,715			491,979		-		-			-		-			491,979
Treasury stock acquired		-		-		-		-		-		-		-		-		(543,715	)		-		543,715		(560,000	)							(560,000	)
Net loss		-		-		-		-		-		-		-		-		-			-		-		-			-		(1,233,176	)		(1,233,176	)
Balance, September 30, 2020		20	$	5,539,174		-	$	-		-	$	-		-	$	-		3,786,338		$	24,711,409		543,715	$	(560,000	)	$	1,075,176	$	(26,959,431	)	$	3,806,328

Nine Months Ended September 30, 2021 and 2020

	Series A				Series B				Series C				Series D														Additional
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock					Treasury Stock					Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount		Shares		Amount			Capital		Deficit			Total
Nine months ended September 30, 2021
Balance, January 1, 2021		20	$	5,539,174		-	$	-		-	$	-		-	$	-		5,544,590		$	26,111,978		543,715	$	(572,678	)	$	2,563,399	$	(30,386,024	)	$	3,255,849
Issuance of preferred stock		-		-		-		-		50		-		1,950		2		-			-		-		-			-		-			2
Conversion of Series C Preferred stock to Common stock		-		-		-		-		-		-		-		-		3,750,000			-		-		-			-		-			-
Sale of common stock		-		-		-		-		-		-		-		-		9,323,540			4,826,001		-		-			-		-			4,826,001
Issuance of common stock in lieu of note repayments		-		-		-		-		-		-		-		-		1,155,250			537,748		-		-			-		-			537,748
Issuance of common stock for services rendered		-		-		-		-		-		-		-		-		1,441,125			985,824		-		-			-		-			985,824
Issuance of common stock for asset acquisitions		-		-		-		-		-		-		-		-		5,537,056			3,350,513		-		-			-		-			3,350,513
Issuance of common stock warrants and commitment shares in connection with convertible promissory note		-		-		-		-		-		-		-		-		-			-		-		-			662,062		-			662,062
Issuance of common stock in lieu of interest payment		-		-		-		-		-		-		-		-		381,247			140,263		-		-			-		-			140,263
Net loss		-		-		-		-		-		-		-		-		-			-		-		-			-		(8,152,487	)		(8,152,487	)
Balance, September 30, 2021		20	$	5,539,174		0	$	-		50	$	-		1,950	$	2		27,132,808		$	35,952,327		543,715	$	(572,678	)	$	3,225,461	$	(38,538,511	)	$	5,605,775
Nine months ended September 30, 2020
Balance, January 1, 2020		20	$	5,539,174		-	$	-		-	$	-		-	$	-		2,680,937		$	23,113,077		-	$	-		$	1,075,176	$	(23,361,223	)	$	6,366,204
Issuance of common stock for services rendered		-		-		-		-		-		-		-		-		435,888			401,059		-		-			-		-			401,059
Issuance of common stock - reverse stock split rounding		-		-		-		-		-		-		-		-		2,460			-		-		-			-		-			-
Issuance of common stock pursuant to FirstFire note agreement		-		-		-		-		-		-		-		-		119,508			295,780		-		-			-		-			295,780
Issuance of common stock presuant to note agreements		-		-		-		-		-		-		-		-		162,545			88,927		-		-			-		-			88,927
Issuance of common stock for acqusition of intangible assets		-		-		-		-		-		-		-		-		235,000			201,187		-		-			-		-			201,187
Issuance of common stock for compensation		-		-		-		-		-		-		-		-		30,000			41,625		-		-			-		-			41,625
Issuance of common stock in lieu of interest payment		-		-		-		-		-		-		-		-		185,000			77,775		-		-			-		-			77,775
Issuance of common stock for inventory		-		-		-		-		-		-		-		-		478,715			491,979		-		-			-		-			491,979
Treasury stock acquired		-		-		-		-		-		-		-		-		(543,715	)		-		543,715		(560,000	)							(560,000	)
Net loss		-		-		-		-		-		-		-		-		-			-		-		-			-		(3,598,208	)		(3,598,208	)
Balance, September 30, 2020		20	$	5,539,174		-	$	-		-	$	-		-	$	-		3,786,338		$	24,711,409		543,715	$	(560,000	)	$	1,075,176	$	(26,959,431	)	$	3,806,328

See notes to consolidated financial statements

5

Can B̅ Corp. and Subsidiaries

Consolidated Statement of Cash Flows

	Nine Months Ended
	September 30,
	2021			2020
Operating activities:
Net loss	$	(8,152,487	)	$	(3,598,208	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		-			1,373,763
Depreciation		141,961			92,999
Amortization of intangible assets		135,339			446,556
Amortization of original-issue-discounts		1,168,918			141,404
Bad debt expense		47,452			202,137
Forgiveness of PPP loan		(194,940	)		-
Stock-based interest expense		140,263			390,430
Changes in operating assets and liabilities:
Accounts receivable		(1,173,653	)		(690,675	)
Inventory		(516,340	)		362,348
Prepaid expenses		885,029			(15,990	)
Deposits		(2,000	)		-
Other noncurrent assets		7,233			33,714
Operating lease right-of-use asset		1,811			565
Accounts payable		1,490,268			221,161
Accrued expenses		(42,769	)		164,512
Net cash used in operating activities		(6,063,915	)		(875,284	)
Investing activities:
Note receivable		-			1,481
Purchase of property and equipment		(472,827	)		(43,616	)
Purchase of intangible assets		(177,530	)		-
Net cash used in investing activities		(650,357	)		(42,135	)
Financing activities:
Proceeds received from notes and loans payable		1,525,000			1,667,840
Proceeds from issuance of Series D Preferred Stock		2			-
Proceeds from sale of common stock		4,826,001			-
Repayments of notes and loans payable		(224,000	)		(90,000	)
Deferred financing costs		-			(101,455	)
Proceeds received from related parties		320,000			-
Acquisition of treasury stock		-			(560,000	)
Net cash provided by financing activities		6,447,003			916,385
Decrease in cash and cash equivalents		(267,269	)		(1,034	)
Cash and cash equivalents, beginning of period		457,798			46,540
Cash and cash equivalents, end of period	$	190,529		$	45,506
Supplemental Cash Flow Information:
Income taxes paid	$	1,084		$	3,170
Interest paid	$	4,000		$	19,746
Non-cash Investing and Financing Activities:
Issuance of common stock in lieu of repayments of notes payable	$	537,748		$	462,482
Amortization of prepaid issuance of common stock for services rendered	$	-		$	931,079
Issuance of common stock in asset acquisitions	$	3,350,513		$	201,187
Issuance of common stock for services rendered	$	985,824		$	-
Issuance of common stock warrants and commitment shares in connection with convertible promissory note	$	662,062		$	-
Issuance of common stock for inventory	$	-		$	491,980

See notes to consolidated financial statements

6

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Note 1 – Organization and Description of Business

Can B̅ Corp. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B̅ Corp. (the “Company”, “we”, “us”, “our”, “CANB”, “Can B̅” or “Registrant”).

The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company (“PHP” or “Pure Health Products”) effective December 28, 2018. The Company runs it manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company’s durable equipment products, such as sam® units with and without CBD infused pads, are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, “Duramed”). Duramed began operating on or about February 1, 2019. Most of the Company’s consumer products include hemp derived cannabidiol (“CBD”); however, the Company has just recently begun extracting cannabinol (“CBN”) and cannabigerol (“CBG”) for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021), TN Botanicals, LLC and CO Botanicals LLC (both incorporated in August 2021). These three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 and Delta-10 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived Delta-8 and Delta-10 are in a gray area and considered a potential loophole at this point due to the 2018 hemp bill. The Company’s other subsidiaries did not have operations during the nine months ended September 30, 2021.

The Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B̅’s products include oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B̅ develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B̅ aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people’s lives in a variety of areas.

Note 2 – Liquidity

The consolidated financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in a normal course of business. As of September 30, 2021, the Company had cash and cash equivalents of $190,529 and negative working capital of $2,665,586. For the periods ended September 30, 2021 and 2020, the Company had incurred losses of $8,152,487 and $3,598,208, respectively. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company plans to improve its financial condition by raising capital through the sale of shares of its common stock. Also, the Company plans to expand its operation of CBD products to increase its profitability. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Note 3 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. Results for interim periods are not necessarily indicative of results to be expected for a full year.

The consolidated balance sheet information as of December 31, 2020 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). The interim consolidated financial statements contained herein should be read in conjunction with the 2020 Form 10-K.

7

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Principles of Consolidation

The unaudited consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Covid-19

Commencing in December 2019, the novel strain of coronavirus (“COVID-19”) began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition and/or results of operations is uncertain.

In response to COVID-19, the Company put into place certain restrictions, requirements and guidelines to protect the health of its employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of its employees, the Company’s daily execution has evolved into a largely virtual model. The Company plans to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that it determines to be in the interests of its employees, customers, and partners.

Management Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2020 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.

Significant Accounting Policies

The Company’s significant accounting policies are described in “Note 3: Summary of Significant Accounting Policies” of our 2020 Form 10-K.

Recently Adopted Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) issued the following accounting pronouncement which became effective for the Company in 2021, and which did not have a material impact on its condensed consolidated financial statements:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which modifies ASC 740 to simplify the accounting for income taxes. ASU 2019-12 addresses the accounting for hybrid tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of legal entities not subject to tax, intraperiod tax allocation exception to incremental approach, ownership changes in investments - changes from a subsidiary to an equity method investment, ownership changes in investments - changes from an equity method investment to a subsidiary, interim period accounting for enacted changes in tax law and year-to-date loss limitation in interim period tax accounting.

8

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Segment reporting

As of September 30, 2021, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company’s business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company’s previously reported net loss.

Note 4 – Asset Acquisitions

Botanical Biotech Asset Acquisition

On March 11, 2021, Company entered into an Asset Acquisition Agreement, which was fully executed on March 17, 2021, with multiple sellers (each, a “Seller” and, collectively, the “Sellers”), pursuant to which the Sellers agreed to sell certain assets to Company, and to transfer such assets to Botanical Biotech, LLC, a newly-formed, wholly-owned subsidiary of the Company (“Transferee” or “BB”). The assets purchased (“BB Assets”) include certain materials and manufacturing equipment, marketing or promotional designs, brochures, advertisements, concepts, literature, books, media rights, rights against any other person or entity in respect of any of the foregoing and all other promotional properties, in each case primarily used, developed or acquired by the Sellers for use in connection with the ownership and operation of the BB Assets. In exchange for the BB Assets the Company will pay the Seller a maximum of $355,057, payable half in the form of cash or cash equivalent and half in the form of restricted shares of common stock of the Company (the “Shares”) at a price per Share equal to the average closing price of the common stock of the Company during the ten (10) consecutive trading days immediately preceding the closing. The Company has agreed to indemnify the Sellers for certain breaches of covenants, representations and warranties and for claims relating to the BB Assets following closing.

In conjunction with the BB asset acquisition, the Company entered into employment agreements with two sellers.

The Company and BB entered into an employment agreement with Lebsock dated March 11, 2021 (the “Lebsock Agreement”) pursuant to which Lebsock will serve as the President of BB for a term of three (3) years. The term of the Lebsock Agreement will automatically renew for an additional 3-year term unless other terminated by either party. Lebsock will receive a base salary equal to $120,000 per year, subject to an annual increase of not less than 3% on each anniversary of the Lebsock Agreement during the term. The Company also agreed to issue a stock bonus to Lebsock in accordance with the Company’s Incentive Stock Option Plan (“ISOP”) in an amount of $100,000, and to pay Lebsock a defined percentage of the EBITDA for BB each calendar quarter (“Profit Split”) according to a mutually agreed performance target (“Target”). EBITDA is defined as the earnings before interest, depreciation, taxes, depreciation, and amortization and will be paid as reported by the Company’s accountant and as reviewed by the Company’s auditor. It will be accumulative on a quarter-to-quarter basis, meaning if one quarter has a negative EBITDA, it would be offset against the following quarter’s positive EBITDA distribution. Lebsock has the option to accept the Profit Split in either direct cash payment or Shares, or any combination, at Lebsock’s option. Shares would be valued at the prior 10-day closing price and issued under SEC Rule 144 restriction.

Effective March 16, 2021, BB entered into a Consulting Agreement (the “Schlosser Agreement”) with Schlosser pursuant to which Schlosser has agreed to provide consulting services to BB for a period of 3 months in exchange for compensation equal to $10,000 per month. Schlosser will also be entitled to reimbursement for certain work-related expenses. Pursuant to the Schlosser Agreement, Schlosser also agreed to assign to BB all inventions developed by Schlosser in connection with his services to BB. The Schlosser Agreement also contains certain non-compete and confidentiality provisions. Per the Acquisition Agreement, Schlosser was to receive an employment agreement similar to the Lebsock Agreement; however, BB and Schlosser elected to enter into the Schlosser Agreement instead.

CO Botanicals Asset Acquisition

On August 12, 2021, The Company and CO Botanicals LLC (“COB”), a newly-formed, wholly-owned subsidiary of the Company entered into an Equipment Acquisition Agreement (the “TWS Agreement”) with TWS Pharma, LLC, (“TWS Pharma”) and L7 TWS Pharma, LLC (“L7 TWS” and, collectively with TWS Pharma, “TWS”). Pursuant to the TWS Agreement, COB agreed to purchase certain equipment and other assets from TWS (the “TWS Assets”) for a total purchase price equal to $5,316,774, with $1,250,000 payable via a 12-month promissory note issued by the Company to TWS Pharma with 6% simple interest and monthly payments of $100,000 due per month (the “TWS Note”), and $4,066,774 payable in shares of the Company’s common stock valued at $0.62 per share (the “TWS Shares”); provided, however, that $1,750,000 of the TWS Shares will be withheld in escrow for a period of ninety (90) days from the closing date, which will be deducted from the purchase price should the Company discover any defects or misrepresentations. The first $500,000 of payments of the TWS Note will be secured by 1,000,000 shares of the Company’s common stock to be held in escrow.

9

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

TN Botanicals Asset Acquisition

On August 13, 2021 the Company and TN Botanicals LLC (“TNB”), a newly-formed, wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “MCB Agreement”) with Music City Botanicals, LLC, pursuant to which TNB agreed to purchase certain equipment, other assets, and intellectual property from MCB (the “MCB Assets”) for a total purchase price equal to $1,394,324, with $498,259 payable in cash and $896,065 payable in shares of the Company’s common stock valued at $0.62 per share (the “MCB Shares”).

Note 5 – Inventories

Inventories consist of:

	September 30,		December 31,
	2021		2020
Raw materials	$	775,116	$	294,522
Finished goods		86,178		50,432
Total	$	861,294	$	344,954

Note 6 – Property and Equipment

Property and equipment consist of:

	September 30,			December 31,
	2021			2020
Furniture and fixtures	$	21,724		$	21,727
Office equipment		12,378			12,378
Manufacturing equipment		6,849,314			397,230
Medical equipment		776,396			776,392
Leasehold improvements		26,902			26,902
Total		7,686,714			1,234,629
Accumulated depreciation		(348,029	)		(239,650	)
Net	$	7,338,685		$	994,979

Depreciation expense related to property and equipment was $140,961 and $92,999 for the nine month periods ending September 30, 2021 and 2020, respectively.

Note 7 – Goodwill and Intangible Assets

Intangible assets consist of:

	September 30,			December 31,
	2021			2020
Technology, IP and patents	$	989,743		$	674,240
Hemp processing registration		85,200			85,200
Total		1,074,943			759,440
Accumulated amortization		(372,070	)		(236,431	)
	$	702,873		$	523,009

Amortization expense was $135,339 and $446,556 for the nine months ended September 30, 2021 and 2020, respectively.

10

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Amortization expense for the balance of 2021, and for each of the next five years and thereafter is estimated to be as follows:

Three months ended December 31, 2021	$	24,278
Fiscal year 2022		97,112
Fiscal year 2023		97,112
Fiscal year 2024		97,112
Fiscal year 2025		86,966
Thereafter		300,293
	$	702,873

There was no goodwill activity during the nine months ended September 30, 2021 and 2020.

Note 8 – Notes and Loans Payable

Convertible Promissory Notes

In December 2020, the Company entered into a convertible promissory note (“ASOP Note I”) with Arena Special Opportunities Partners I, LP (“ASOP”). The principal balance of the note is $2,675,239 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 3,426,280 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 3,426,280 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note I. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $760,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $2,286,792.

In December 2020, the Company entered into a convertible promissory note (“ASOF Note I”) with Arena Special Opportunities Fund, LP (“ASOF”). The principal balance of the note is $102,539 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOF convertible promissory note was issued with 131,325 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 131,325 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note I. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $31,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $87,773.

In May 2021, the Company entered into a convertible promissory note (“ASOP Note II”) with Arena Special Opportunities Partners I, LP. The principal balance of the note is $1,193,135 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 1,529,670 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 1,529,670 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note II. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $277,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $1,073,250.

11

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

In May 2021, the Company entered into a convertible promissory note (“ASOF Note II”) with Arena Special Opportunities Fund, LP. The principal balance of the note is $306,865 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 393,417 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 393,417 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note II. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $71,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $276,750.

PPP Loan

In 2020, the Company received a loan under the U.S. Small Business Administration’s Paycheck Protection Program established under the Coronavirus Aid Relief and Economic Security Act (“CARES act”) and related rules and regulations (the “PPP loan”) of $194,940.

Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of such loans after eight weeks, if the loan is used for eligible purposes, including to fund payroll costs, mortgage interest, rent and/or utility costs, and meet certain other requirements, including, the maintenance of employment and compensation levels. The Company plans to use the entire PPP Loan for qualifying expenses and expects to qualify for full or partial forgiveness under the program.

In May 2021, the Company received notice of forgiveness of the PPP loan in whole, including all accrued unpaid interest. In fiscal year 2021, the Company recorded the forgiveness of $194,940 of principal and $1,949 of accrued interest for a total of $196,889, which was included in gain on extinguishment of debt on the Consolidated Statements of Operations.

TWS Note

On August 12, 2021, pursuant to an Equipment Acquisition Agreement, the Company entered into a twelve-month promissory note of $1,250,000 with payments of $100,000 per month and interest at 6% (See Note 4). As of September 30, 2021, the total amount outstanding was $1,050,000.

Related Party Loan

In 2020, the Company entered into a loan payable to a director of the Company with a principal balance of $224,000. The loan bore interest at 12% per annum and was due in December 2020. The Company subsequently paid the loan in full in February 2021.

Note 9 – Stockholders’ Equity

Preferred Stock

Each share of Series A Preferred Stock is convertible into 33,334 shares of CANB common stock and is entitled to 66,666 votes. All Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. In the event of a Liquidation Event, whether voluntary or involuntary, each holder may elect (i) to receive, in preference to the holders of Common Stock, a one-time liquidation preference on a per-share amount equal to the per-share value of preferred shares on the issuance date, as recorded in the Company’s financial records, or (ii) to participate pari passu with the Common Stock on an as-converted basis. Subject to any adjustments, the Series A holders shall be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock on an as converted basis.

12

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Each share of Series B Preferred Stock has the first preference to dividends, distributions and payments upon liquidation, dissolution and winding-up of the Company, and is entitled to an accrued cumulative but not compounding dividend at the rate of 5% per annum whether or not declared. After six months of the issuance date, such share and any accrued but unpaid dividends can be converted into common stock at the conversion price which is the lower of (i) $0.0101; or (ii) the lower of the dollar volume weighted average price of CANB common stock on the trading day prior to the conversion day or the dollar volume weighted average price of CANB common stock on the conversion day. The shares of Series B Preferred Stock have no voting rights.

Each share of Series C Preferred Stock has preference to payment of dividends, if and when declared by the Company, compared to shares of our common stock. Each Preferred Series C share is convertible into 25,000 shares of common stock. The shares of Series C Preferred Stock have voting rights as if fully converted.

Each share of Series D Preferred Stock has 10,000 shares of voting rights only pari passu to common shares voting with no conversion rights and no equity participation. The Company can redeem Series D Preferred Stock at any time for par value.

On February 8, 2021, the Company’s Board of Directors approved the designation of the Series D Preferred Shares and the number of shares constituting such series, and the rights, powers, preferences, privileges and restrictions relating to such series. On March 27, 2021, the Company filed an amendment to its articles of incorporation to authorize 4,000 shares of a new Series D Preferred Stock with a par value of $0.001 each. All Series D Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. Each Series D Preferred Share shall have voting rights equal to 10,000 shares of Common Stock, adjustable at any recapitalization of the Company’s stock. In the event of a liquidation event, whether voluntary or involuntary, each holder shall have a liquidation preference on a per-share amount equal to the par value of such holder’s Series D Preferred Shares. The holders shall not be entitled to receive distributions made or dividends paid to the Company’s other stockholders. Except as otherwise required by law, for as long as any Series D Preferred Shares remain outstanding, the Company shall have the option to redeem any outstanding share of Series D Preferred Shares at any time for a purchase price of par value per share of Series D Preferred Shares (“Price per Share”). Should the Company desire to purchase Series D Preferred Shares, the Company shall provide the Holder with written notice and a check or cash in an amount equal to the number of shares of Series D Preferred Shares being purchased multiplied by the Price per Share. The shares of Series D Preferred Shares so purchased shall be deemed automatically cancelled and the Holder shall return the certificates for such share to the Corporation. On or around March 27, 2021, the Company issued Mr. Alfonsi, Mr. Ferro, and Mr. Teeple Series D Preferred Stock in the amount of 600 shares each and to COO Philip Scala in the amount of 150 shares, collectively representing 19,500,000 voting shares.

Common Stock

For the nine months ended September 30, 2021, the Company issued an aggregate of 9,323,540 shares of Common Stock under its Offering Statement on Form 1-A (File No. 024-11233) (the “Regulation A Offering”).

In addition, for the nine months ended September 30, 2021, the Company issued an aggregate of 5,537,056, 1,441,125, and 1,536,497 of Common Stock for asset acquisitions, services rendered, and in lieu of note and interest repayments, respectively.

13

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Note 10 – Stock Options

A summary of stock options activity for the nine months ended September 30, 2021 is as follows:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, January 1, 2021		1,197,199	$	0.36		4.17
Granted		561,920	$	0.46		4.57
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, September 30, 2021		1,759,119	$	0.39		4.27

	Option Shares		Weighted Average Grant-Date Fair Value
Non-vested options, January 1, 2021		1,197,199	$	0.35
Granted		561,920	$	0.46
Vested		-		-
Forfeited		-		-
Non-vested options, September 30, 2021	$	1,759,119	$	0.36

Note 11 – Income Taxes

The Company’s income tax provisions for the nine and three months ended September 30, 2021 and 2020 reflect the Company’s estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company’s estimated tax expense for the full year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions.

Note 12 – Related Party Transactions

For the nine months ended September 30, 2021 and 2020, the Company paid fees to a service provider that is a relative of a director for professional services in the amount of $9,900 and $54,500, respectively.

As of September 30, 2021, the Company has amounts due to a related party of $320,000 which are expected to be repaid in the next twelve months.

Note 13 – Commitments and Contingencies

Employment Agreements

On December 28, 2020, the Company entered into new three-year Employment Agreements with CEO Marco Alfonsi, CFO Stanley Teeple, and Pure Health Products LLC Pasquale Ferro. Under these agreements, they are to receive a i) base salary of fifteen thousand dollars ($15,000.00) per month, ii) is eligible to receive cash and or stock bonuses, iii) shall receive a stock bonus in accordance with the Company’s Incentive Stock Option Plan (“ISOP”) in an amount of one-hundred thousand dollars ($100,000) per year of the Agreement, iv) 200 shares of the Company’s Series C Preferred stock, v) usual and customary benefits including expense reimbursement, health and life insurance plan reimbursements and allowances. Phil Scala. Interim COO also received a similar agreement with a base compensation of fifty-two thousand annually, $100,000 in ISO, and 20 Preferred C shares.

Consulting Agreements

On July 15, 2020, we engaged an advisor to provide consulting services under an Investor Relations and Advisory Agreement (the “Advisory Agreement”). Pursuant to the Advisory Agreement, we agreed to pay the Consulting Firm a restricted common stock monthly fee of $5,000 per month for the initial 3 months., $6,250 per month for months 4-6., $7,500 per month for month 7 and after. At CANB’s option, the monthly fee may be payable in part or in whole in cash. Monthly Fee, such amount shall be paid via issuance of restricted common shares of CANB. The shares are to be issued in the name of Tysadco Partners. The number of common shares earned each month shall be calculated and issued on a quarterly basis prior to each 90-day period and based on the value at the closing price on the last day of the preceding period. All common shares earned by the Consultant pursuant to this Agreement shall be issued by CANB on a quarterly basis.

14

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Lease Agreements

We determine if a contract contains a lease at inception. Our material operating leases are utilized for office space, processing and storage. Our leases generally have remaining terms of 1-3 years. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods.

Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term.

The Company leases office space in numerous medical facilities offices under month-to-month agreements.

Rent expense for the nine months ended September 30, 2021 and 2020 was $492,919 and $193,069, respectively.

At September 30, 2021, the future minimum lease payments under non-cancellable operating leases were:

Three months ended December 31, 2021	$	181,725
Fiscal year 2022		655,885
Fiscal year 2023		701,839
Fiscal year 2024		433,640
	$	1,973,089

Note 14 – Subsequent Events

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements are issued and as of that date, except as reported below, there were no subsequent events that required adjustment or disclosure in the consolidated financial statements.

15

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

Can B̅ Corp. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B̅ Corp. (.

The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company (“PHP” or “Pure Health Products”) effective December 28, 2018. The Company runs it manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company’s durable equipment products, such as sam® units with and without CBD infused pads, are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, “Duramed”). Duramed began operating on or about February 1, 2019. Most of the Company’s consumer products include hemp derived cannabidiol (“CBD”); however, the Company has just recently begun extracting cannabinol (“CBN”) and cannabigerol (“CBG”) for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021) and TN Botanicals LLC and CO Botanicals LLC (both incorporated in August 2021). The three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived delta-8 is in a gray area and considered a potential loophole at this point due to the 2018 hemp bill. The Company’s other subsidiaries did not have operations during the nine months ended September 30, 2021.

The Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B̅’s products include oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B̅ develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B̅ aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people’s lives in a variety of areas.

The consolidated financial statements include the accounts of CANB and its operational wholly owned subsidiaries.

Results of Operations

Three months ended September 30, 2021 compared to three months ended September 30, 2020.

Revenues increased $1,450,876 from $459,496 in 2020 to $1,910,372 in 2021. The increase was due to the resumption of elective surgeries in 2021 which were temporarily paused through Q2 of 2020 due to the impact of the COVID-19 outbreak. Medical durable equipment utilized in elective surgeries is the Company’s primary medical device revenue. In addition, the increase was related to operations of the Company’s delta-8 synthesizing business which began in March 2021 as well as revenues from the Company’s initial operations in Tennessee.

Cost of product sales increased $470,505 from $70,381 in 2020 to $540,886 in 2021 due to the increase in sales caused by increase in elective surgeries.

Operating expenses increased $2,731,934 from $1,161,751 in 2020 to $3,893,685 in 2021 as a direct result of professional fees incurred and attributable to the Company’s asset acquisitions and Regulation A offering.

Net loss increased $1,999,440 from $1,233,176 in 2020 to $3,232,616 in 2021. The increase was due to the $2,731,934 increase in total operating expenses net of the $980,371 increase in gross profit.

Nine months ended September 30, 2021 compared to nine months ended September 30, 2020.

Revenues increased $1,384,791 from $1,234,287 in 2020 to $2,619,078 in 2021. The increase was due to the resumption of elective surgeries in 2021 which were temporarily paused through Q2 of 2020 due to the impact of the COVID-19 outbreak. Medical durable equipment utilized in elective surgeries is the Company’s primary medical device revenue. In addition, the increase was related to operations of the Company’s delta-8 synthesizing business which began in March 2021 as well as revenues from the Company’s initial operations in Tennessee.

16

Cost of product sales increased $636,318 from $239,975 in 2020 to $876,293 in 2021 due to increase of inventory pricing in 2021 as well as operations of the Company’s delta-8 synthesizing business which began in March 2021.

Operating expenses increased $4,646,948 from $3,998,414 in 2020 to $8,645,362 in 2021 as a direct result of professional fees incurred and attributable to the Company’s asset acquisitions and Regulation A offering.

Net loss increased $4,554,279 from $3,598,208 in 2020 to $8,152,487 in 2021. The increase was due to the $4,646,948 increase in total operating expenses net of the $748,473 increase in gross profit period over period.

Liquidity and Capital Resources

At September 30, 2021, the Company had cash and cash equivalents of $190,529 and negative working capital of $2,665,586. Cash and cash equivalents decreased $267,269 from $457,798 at December 31, 2020 to $190,529 at September 30, 2021. For the nine months ended September 30, 2021, $6,447,003 was provided by financing activities, $6,063,915 was used in operating activities, and $650,357 was used in investing activities.

The Company currently has no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

We have no off-balance sheet arrangements.

Trend Information

The novel coronavirus disease of 2019 (“COVID-19”) outbreak has affected the Company’s operations as set forth above. The full impact of the COVID-19 outbreak continues to evolve. As such, it is uncertain as to the full magnitude that the pandemic will have on our financial condition, liquidity, and future results of operations. Management is actively monitoring the impact of the global situation on our financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, we are not able to estimate the effects of the COVID-19 outbreak on our results of operations, financial condition, or liquidity for the foreseeable future, however, as a direct result of medical offices closure in our primary area of operations, our sales for third quarter are down approximately 60% year over year and quarter over quarter. During the course of the pandemic situation, the Company laid off 80% of its workforce in the CBD business and are just now recovering those operations. Our inventory increased to over $500,000 due to lack of sales, but fortunately, the product shelf life exceeds two years so as sales increase, we expect inventory levels to level off at close to $200,000. Our Duramed division was tasked with 90% of the affiliate doctors ceasing operations for period from 4-8 months and are just now recovering full operations. Presently, our Duramed operations are at 60% of pre-COVID operational level. Our expectation that as business open, and in particular medical offices, that our recovery will progress in sync with the speed of the business openings and expect to be back to pre-COVID operational level by end of the 3rd quarter 2021.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None.

ITEM 4. CONTROLS AND PROCEDURES

(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of September 30, 2021, our principal executive officer and principal financial officer conducted an evaluation regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act). Based upon the evaluation of these controls and procedures, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report.

17

(B) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting in our fiscal quarter for the period September 30, 2021 covered by this Quarterly Report on Form 10-Q, that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On April 28, 2021, the Company was served with a commercial legal action against the Company and certain officers by two investors of the Company (collectively, the “Investors”). The complaint was filed in the Supreme Court of the State of New York, County of Nassau, Index No. 605191/2021. The complaint alleges four causes of action including breach of contract and misrepresentations.

We have consulted with attorneys and believe the Investors’ complaints are without merit, factually inaccurate, and frivolous. We intend to vigorously defend ourselves against the aforementioned legal action and will likely bring counterclaims against the Investors.

Other than above, we are not aware of any pending or threatened legal proceedings in which we are involved.

ITEM 1A. RISK FACTORS

As a smaller reporting company, we are not required to provide risk factors in this Form 10-Q, however The Company has been directly impacted and has experienced moderate interruption during this challenging COVID-19 pandemic. In accordance with applicable federal and state guidelines, the Company has implemented and prioritized strict social distancing measures, good manufacturing practices, proper sanitization measures, and new manufacturing guidelines. Although several Company customers have experienced business shutdowns during the last few weeks, this has dramatically impacted our online ordering and/or initiating new direct shipment orders. Additional COVID operating requirements to insure safety, handling requirements, sanitation requirements have placed a significant burden on order processing and fulfilment.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Sales of unregistered securities during the nine months ended September 30, 2021 are as follows:

From January 1, 2021 through September 30, 2021 the Company issued an aggregate of 9,323,540 shares of Common Stock under its Reg A-1 registration currently in effect and an additional 1,441,125 shares of common stock to various consultants for services.

From January 1, 2021 through September 30, 2021 the Company issued an aggregate of 5,537,056 shares of Common Stock under various asset acquisition agreements.

From January 1, 2021 through September 30, 2021 the Company issued an aggregate of 1,536,497 shares of Common Stock under various note and related interest conversion agreements.

From January 1, 2021 through September 30, 2021 the Company issued an aggregate of 150 shares of Preferred C shares under multiple employment agreements. The Preferred C shares converted to 3,750,000 shares of Common Stock upon issuance.

From January 1, 2021 through September 30, 2021, the Company issued an aggregate of 1,950 shares of Preferred D shares.

With respect to the transactions noted above, each of the recipients of securities of the Company was an accredited investor, or is considered by the Company to be a “sophisticated person”, inasmuch as each of them has such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of receiving securities of the Company. No solicitation was made and no underwriting discounts were given or paid in connection with these transactions. The Company believes that the issuance of its securities as described above was exempt from registration with the Securities and Exchange Commission pursuant to Section 4(a)(2) and/or Regulation D of the Securities Act of 1933.

18

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The following exhibits are filed with this offering circular:

Exhibit	Description
3.1	Articles of Incorporation, as amended(1)
3.2	Bylaws(2)
3.3	Articles of Amendment designating Series A Preferred Stock rights, as amended(9)
3.4	Articles of Amendment designating Series B Preferred Stock rights(1)
3.5	Articles of Amendment designating Series C Preferred Stock rights(7)
3.6	Articles of Amendment designating Series D Preferred Stock rights(10)
10.1	Employment Agreement with Marco Alfonsi dated December 29, 2020(10)
10.2	Employment Agreement with Stanley L. Teeple dated December 29, 2020(10)
10.3	Employment Agreement with Pasquale Ferro dated December 29, 2020(10)
10.4	Employment Agreement with Phil Scala dated December 29, 2020(10)
10.5	Commission Agreement with Andrew Holtmeyer(10)
10.6	Employment Agreement with Bradley Lebsock(10)
10.8	Memorandum of Understanding with Sam International and ZetrOZ Systems LLC(3)
10.9	Can B̅ Corp. 2020 Incentive Stock Option Plan(8)
10.10	2020 Arena Securities Purchase Agreement(10)
10.11	2020 ASOF Original Issue Discount Senior Secured Convertible Promissory Note(10)
10.12	2020 ASOF Warrant to Purchase Common Stock(10)
10.13	2020 ASOP Original Issue Discount Senior Secured Convertible Promissory Note(10)
10.14	2020 ASOP Warrant to Purchase Common Stock(10)
10.15	2020 Arena Security Agreement(10)
10.16	2020 Arena Intellectual Property Security Agreement(10)
10.17	2020 Arena Registration Rights Agreement(10)
10.18	2020 Arena Holding Escrow Agreement(10)
10.19	2020 Arena Guaranty Agreement from Company Subsidiaries(10)
10.20	Amendment to 2020 ASOF Promissory Note(11)
10.21	Amendment to 2020 ASOP Promissory Note(11)
10.22	2021 Arena Securities Purchase Agreement(11)
10.23	2021 ASOF Original Issue Discount Senior Secured Convertible Promissory Note(11)
10.24	2021 ASOF Warrant to Purchase Common Stock(11)
10.25	2021 ASOP Original Issue Discount Senior Secured Convertible Promissory Note(11)
10.26	2021 ASOP Warrant to Purchase Common Stock(11)
10.27	2021 Arena Registration Rights Agreement(11)
10.28	2021 Addendum to Arena Security Agreement(11)
10.29	2021 Addendum to Arena Intellectual Property Security Agreement(11)
10.30	2021 Addendum to Arena Guaranty Agreement from Company Subsidiaries(11)
10.31	Promissory Note to TWS(13)

19

10.32	Commercial Lease with Makers Developments LLC(14)
10.33	Single-Tenant NNN Lease Agreement with CS2 Real Estate Holdings, LLC(14)
10.34	Commercial Lease with Red Road Business Park(14)
14.1	Code of Ethics(1)
21.1	List of Subsidiaries(15)
31.1	Chief Executive Officer certification under Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer certification under Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation
101.DEF	Inline XBRL Taxonomy Extension Definition
101.LAB	Inline XBRL Taxonomy Extension Labels
101.PRE	Inline XBRL Taxonomy Extension Presentation

(1)	Filed with the Annual Report on Form 10-K filed with the SEC on April 2, 2020 and incorporated herein by reference.
(2)	Filed with the Form S-1 Registration Statement filed with the SEC on December 2, 2015 and incorporated herein by reference.
(3)	Filed with the Current Report on Form 8-K filed with the SEC on January 30, 2019 and incorporated herein by reference.
(4)	Filed with the Current Report on Form 8-K filed with the SEC on December 6, 2019 and incorporated herein by reference.
(5)	Filed with the Current Report on Form 8-K filed with the SEC on February 18, 2020 and incorporated herein by reference.
(6)	Filed with the Current Report on Form 8-K filed with the SEC on January 15, 2019 and incorporated herein by reference.
(7)	Filed with the Form 1-A/A, Part III, filed with the SEC on July 17, 2020 and incorporated herein by reference.
(8)	Filed with the Form 1-A POS, Part III, filed with the SEC on September 11, 2020 and incorporated herein by reference.
(9)	Filed with the Current Report on Form 8-K filed with the SEC on November 23, 2020 and incorporated herein by reference.
(10)	Filed with the Annual Report on Form 10-K filed with the SEC on April 14, 2021 and incorporated herein by reference.
(11)	Filed with the Quarterly Report on Form 10-Q filed with the SEC on May 21, 2021 and incorporated herein by reference.
(13)	Filed with the Current Report on Form 8-K filed with the SEC on August 17, 2021 and incorporated herein by reference.
(14)	Filed with the Current Report on Form 8-K filed with the SEC on September 1, 2021 and incorporated herein by reference.
(15)	Filed with the Quarterly Report on Form 10-Q filed with the SEC on August 16, 2021 and incorporated herein by reference.

20

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Can B Corp.
Date: November 4, 2021	By:	/s/ Marco Alfonsi
		Marco Alfonsi, Chief Executive Officer
Date: November 4, 2021	By:	/s/ Stanley L. Teeple
		Stanley L. Teeple, Chief Financial Officer

21

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Marco Alfonsi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Can B Corp.

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 quarterly 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 controls 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 quarterly 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;
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;

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 function):

a)	all significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.

Dated: November 4, 2021	By:	/s/ Marco Alfonsi
		Marco Alfonsi, Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Stanley L. Teeple, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Can B Corp.;

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 quarterly 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 controls 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 quarterly 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;
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;

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 function):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.

Dated: November 4, 2021	By:	/s/ Stanley L. Teeple
		Stanley L. Teeple, Chief Financial Officer (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 Can B Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Marco Alfonsi, Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. section 1350 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 the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 4, 2021	By:	/s/ Marco Alfonsi
		Marco Alfonsi Chief Executive Officer
		(Principal Executive Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

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 Can B Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Marco Alfonsi, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350 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 the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 4, 2021	By:	/s/ Stanley L. Teeple
		Stanley L. Teeple, Chief Financial Officer (Principal Financial Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	333-208293
Entity Registrant Name	Can B Corp.
Entity Central Index Key	0001509957
Entity Tax Identification Number	20-3624118
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	960 South Broadway
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Hicksville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11801
City Area Code	516
Local Phone Number	595-9544
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	false
Entity Common Stock, Shares Outstanding		28,040,528

XML

Consolidated Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 190,529	$ 457,798
Accounts receivable, less allowance for doubtful accounts of $533,300 and $485,848, respectively	3,129,265	2,003,064
Inventory	861,294	344,954
Note receivable	2,898	2,898
Operating lease right-of-use-asset - current	671,954	35,790
Prepaid expenses	324,097	1,209,126
Total current assets	5,180,037	4,053,630
Property and equipment, net	7,338,685	994,979
Other assets:
Deposits	23,287	21,287
Intangible assets, net	702,873	523,009
Goodwill	55,849	55,849
Operating lease right-of-use-asset - noncurrent	1,298,500	22,384
Other noncurrent assets	13,082	20,315
Total other assets	2,093,591	642,844
Total assets	14,612,313	5,691,453
Current liabilities:
Accounts payable	658,084	153,640
Accrued expenses	1,907,726	200,495
Due to related party	320,000
Notes and loans payable, net	4,147,639	1,827,531
Operating lease liability - current	812,174	43,506
Total current liabilities	7,845,623	2,225,172
Long-term liabilities:
Notes and loans payable, net		194,940
Operating lease liability - noncurrent	1,160,915	15,492
Total long-term liabilities	1,160,915	210,432
Total liabilities	9,006,538	2,435,604
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred Stock Value
Common stock, no par value; 1,500,000,000 shares authorized, 27,132,807 and 5,544,590 issued and outstanding at September 30, 2021 and December 31, 2020, respectively	35,952,327	26,111,978
Treasury stock	(572,678)	(572,678)
Additional paid-in capital	3,225,461	2,563,399
Accumulated deficit	(38,538,511)	(30,386,024)
Total stockholders’ equity	5,605,775	3,255,849
Total liabilities and stockholders’ equity	14,612,313	5,691,453
Series A Preferred Stock [Member]
Stockholders’ equity:
Preferred Stock Value	5,539,174	5,539,174
Total stockholders’ equity	5,539,174	5,539,174
Series B Preferred Stock [Member]
Stockholders’ equity:
Preferred Stock Value
Total stockholders’ equity
Series C Preferred Stock [Member]
Stockholders’ equity:
Preferred Stock Value
Total stockholders’ equity
Series D Preferred Stock [Member]
Stockholders’ equity:
Preferred Stock Value	2
Total stockholders’ equity	$ 2

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Allowance for doubtful accounts	$ 533,300	$ 485,848
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	27,132,807	5,544,590
Common stock, shares outstanding	27,132,807	5,544,590
Series A Preferred Stock [Member]
Preferred stock, shares authorized	20	20
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares issued	20	20
Preferred stock, shares outstanding	20	20
Series B Preferred Stock [Member]
Preferred stock, shares authorized	500,000	500,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series C Preferred Stock [Member]
Preferred stock, shares authorized	2,000	2,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	50	50
Preferred stock, shares outstanding	50	50
Series D Preferred Stock [Member]
Preferred stock, shares authorized	4,000	4,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	1,950	1,950
Preferred stock, shares outstanding	1,950	1,950

XML

Consolidated Statement of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Total revenues	$ 1,910,372	$ 459,496	$ 2,619,078	$ 1,234,287
Cost of revenues	540,886	70,381	876,293	239,975
Gross profit	1,369,486	389,115	1,742,785	994,312
Operating expenses	3,893,685	1,161,751	8,645,362	3,998,414
Loss from operations	(2,524,199)	(772,636)	(6,902,577)	(3,004,102)
Other income (expense):
Other income		204	2,935	645
Gain on debt extinguishment			196,889
Interest expense	(707,855)	(468,799)	(1,448,650)	(551,581)
Other (expense) income	(647)	10,000		(40,000)
Other expense	(708,502)	(458,595)	(1,248,826)	(590,936)
Loss before provision for income taxes	(3,232,701)	(1,231,231)	(8,151,403)	(3,595,038)
Provision for (benefit from) income taxes	(85)	1,945	1,084	3,170
Net loss	$ (3,232,616)	$ (1,233,176)	$ (8,152,487)	$ (3,598,208)
Loss per share - basic and diluted	$ (0.11)	$ (0.37)	$ (0.36)	$ (1.16)
Weighted average shares outstanding - basic and diluted	30,025,766	3,376,610	22,667,619	3,091,866
Product Sales [Member]
Revenues
Total revenues	$ 1,749,435	$ 459,196	$ 2,355,231	$ 1,233,287
Service Revenue [Member]
Revenues
Total revenues	$ 160,937	$ 300	$ 263,847	$ 1,000

XML

Consolidated Statement of Stockholders' Equity - USD ($)	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]	Series C Preferred Stock [Member]	Series D Preferred Stock [Member]	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 5,539,174				$ 23,113,077		$ 1,075,176	$ (23,361,223)	$ 6,366,204
Beginning balance, shares at Dec. 31, 2019	20				2,680,937
Issuance of common stock for services rendered					$ 401,059				401,059
Issuance of common stock for services rendered, shares					435,888
Issuance of common stock in lieu of interest payment					$ 77,775				77,775
Issuance of common stock in lieu of interest payment, shares					185,000
Issuance of common stock for inventory					$ 491,979				491,979
Issuance of common stock for inventory, shares					478,715
Treasury stock acquired						$ (560,000)			$ (560,000)
Treasury stock acquired, shares					(543,715)	543,715
Issuance of common stock - reverse stock split rounding
Issuance of common stock - reverse stock split rounding, shares					2,460
Issuance of common stock pursuant to FirstFire note agreement					$ 295,780				$ 295,780
Issuance of common stock pursuant to FirstFire note agreement, shares					119,508
Issuance of common stock presuant to note agreements					$ 88,927				88,927
Issuance of common stock presuant to note agreements, shares					162,545
Issuance of common stock for acqusition of intangible assets					$ 201,187				201,187
Issuance of common stock for acqusition of intangible assets, shares					235,000
Issuance of common stock for compensation					$ 41,625				41,625
Issuance of common stock for compensation, shares					30,000
Net loss								(3,598,208)	(3,598,208)
Ending balance, value at Sep. 30, 2020	$ 5,539,174				$ 24,711,409	$ (560,000)	1,075,176	(26,959,431)	3,806,328
Ending balance, shares at Sep. 30, 2020	20				3,786,338	543,715
Beginning balance, value at Dec. 31, 2019	$ 5,539,174				$ 23,113,077		1,075,176	(23,361,223)	6,366,204
Beginning balance, shares at Dec. 31, 2019	20				2,680,937
Ending balance, value at Dec. 31, 2020	$ 5,539,174				$ 26,111,978	$ (572,678)	2,563,399	(30,386,024)	3,255,849
Ending balance, shares at Dec. 31, 2020	20				5,544,590	543,715
Beginning balance, value at Jun. 30, 2020	$ 5,539,174				$ 24,056,211		1,075,176	(25,726,255)	4,944,306
Beginning balance, shares at Jun. 30, 2020	20				3,421,338
Issuance of common stock for services rendered					$ 85,444				85,444
Issuance of common stock for services rendered, shares					245,000
Issuance of common stock in lieu of interest payment					$ 77,775				77,775
Issuance of common stock in lieu of interest payment, shares					185,000
Issuance of common stock for inventory					$ 491,979				491,979
Issuance of common stock for inventory, shares					478,715
Treasury stock acquired						$ (560,000)			(560,000)
Treasury stock acquired, shares					(543,715)	543,715
Net loss								(1,233,176)	(1,233,176)
Ending balance, value at Sep. 30, 2020	$ 5,539,174				$ 24,711,409	$ (560,000)	1,075,176	(26,959,431)	3,806,328
Ending balance, shares at Sep. 30, 2020	20				3,786,338	543,715
Beginning balance, value at Dec. 31, 2020	$ 5,539,174				$ 26,111,978	$ (572,678)	2,563,399	(30,386,024)	3,255,849
Beginning balance, shares at Dec. 31, 2020	20				5,544,590	543,715
Issuance of common stock for services rendered					$ 985,824				985,824
Issuance of common stock for services rendered, shares					1,441,125
Issuance of common stock for asset acquisitions					$ 3,350,513				3,350,513
Issuance of common stock for asset acquisition, shares					5,537,056
Sale of common stock					$ 4,826,001				4,826,001
Sale of common stock, shares					9,323,540
Issuance of common stock in lieu of interest payment					$ 140,263				140,263
Issuance of common stock in lieu of interest payment, shares					381,247
Issuance of preferred stock, shares				$ 2					2
Issuance of preferred stock, shares			50	1,950
Conversion of Series C Preferred stock to Common stock
Conversion of Series C Preferred stock to Common stock, shares					3,750,000
Issuance of common stock in lieu of note repayments					$ 537,748				537,748
Issuance of common stock in lieu of note repayments, shares					1,155,250
Issuance of common stock warrants and commitment shares in connection with convertible promissory note							662,062		662,062
Net loss								(8,152,487)	(8,152,487)
Ending balance, value at Sep. 30, 2021	$ 5,539,174			$ 2	$ 35,952,327	$ (572,678)	3,225,461	(38,538,511)	5,605,775
Ending balance, shares at Sep. 30, 2021	20	0	50	1,950	27,132,808	543,715
Beginning balance, value at Jun. 30, 2021	$ 5,539,174			$ 2	$ 30,070,447	$ (572,678)	3,225,461	(35,305,895)	2,956,511
Beginning balance, shares at Jun. 30, 2021	20		50	1,950	16,943,011	543,715
Issuance of common stock for services rendered					$ 568,776				568,776
Issuance of common stock for services rendered, shares					1,035,011
Issuance of common stock for asset acquisitions					$ 3,212,840				3,212,840
Issuance of common stock for asset acquisition, shares					5,181,999
Sale of common stock					$ 1,960,001				1,960,001
Sale of common stock, shares					3,591,540
Issuance of common stock in lieu of interest payment					$ 140,263				140,263
Issuance of common stock in lieu of interest payment, shares					381,247
Net loss								(3,232,616)	(3,232,616)
Ending balance, value at Sep. 30, 2021	$ 5,539,174			$ 2	$ 35,952,327	$ (572,678)	$ 3,225,461	$ (38,538,511)	$ 5,605,775
Ending balance, shares at Sep. 30, 2021	20	0	50	1,950	27,132,808	543,715

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Consolidated Statement of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities:
Net loss	$ (8,152,487)	$ (3,598,208)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		1,373,763
Depreciation	141,961	92,999
Amortization of intangible assets	135,339	446,556
Amortization of original-issue-discounts	1,168,918	141,404
Bad debt expense	47,452	202,137
Forgiveness of PPP loan	(194,940)
Stock-based interest expense	140,263	390,430
Changes in operating assets and liabilities:
Accounts receivable	(1,173,653)	(690,675)
Inventory	(516,340)	362,348
Prepaid expenses	885,029	(15,990)
Deposits	(2,000)
Other noncurrent assets	7,233	33,714
Operating lease right-of-use asset	1,811	565
Accounts payable	1,490,268	221,161
Accrued expenses	(42,769)	164,512
Net cash used in operating activities	(6,063,915)	(875,284)
Investing activities:
Note receivable		1,481
Purchase of property and equipment	(472,827)	(43,616)
Purchase of intangible assets	(177,530)
Net cash used in investing activities	(650,357)	(42,135)
Financing activities:
Proceeds received from notes and loans payable	1,525,000	1,667,840
Proceeds from issuance of Series D Preferred Stock	2
Proceeds from sale of common stock	4,826,001
Repayments of notes and loans payable	(224,000)	(90,000)
Deferred financing costs		(101,455)
Proceeds received from related parties	320,000
Acquisition of treasury stock		(560,000)
Net cash provided by financing activities	6,447,003	916,385
Decrease in cash and cash equivalents	(267,269)	(1,034)
Cash and cash equivalents, beginning of period	457,798	46,540
Cash and cash equivalents, end of period	190,529	45,506
Supplemental Cash Flow Information:
Income taxes paid	1,084	3,170
Interest paid	4,000	19,746
Non-cash Investing and Financing Activities:
Issuance of common stock in lieu of repayments of notes payable	537,748	462,482
Amortization of prepaid issuance of common stock for services rendered		931,079
Issuance of common stock in asset acquisitions	3,350,513	201,187
Issuance of common stock for services rendered	985,824
Issuance of common stock warrants and commitment shares in connection with convertible promissory note	662,062
Issuance of common stock for inventory		$ 491,980

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Organization and Description of Business

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Organization and Description of Business

Note 1 – Organization and Description of Business

Can B̅ Corp. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B̅ Corp. (the “Company”, “we”, “us”, “our”, “CANB”, “Can B̅” or “Registrant”).

The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company (“PHP” or “Pure Health Products”) effective December 28, 2018. The Company runs it manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company’s durable equipment products, such as sam® units with and without CBD infused pads, are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, “Duramed”). Duramed began operating on or about February 1, 2019. Most of the Company’s consumer products include hemp derived cannabidiol (“CBD”); however, the Company has just recently begun extracting cannabinol (“CBN”) and cannabigerol (“CBG”) for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021), TN Botanicals, LLC and CO Botanicals LLC (both incorporated in August 2021). These three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 and Delta-10 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived Delta-8 and Delta-10 are in a gray area and considered a potential loophole at this point due to the 2018 hemp bill. The Company’s other subsidiaries did not have operations during the nine months ended September 30, 2021.

The Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B̅’s products include oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B̅ develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B̅ aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people’s lives in a variety of areas.

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Liquidity

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity

Note 2 – Liquidity

The consolidated financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in a normal course of business. As of September 30, 2021, the Company had cash and cash equivalents of $190,529 and negative working capital of $2,665,586. For the periods ended September 30, 2021 and 2020, the Company had incurred losses of $8,152,487 and $3,598,208, respectively. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company plans to improve its financial condition by raising capital through the sale of shares of its common stock. Also, the Company plans to expand its operation of CBD products to increase its profitability. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 3 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. Results for interim periods are not necessarily indicative of results to be expected for a full year.

The consolidated balance sheet information as of December 31, 2020 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). The interim consolidated financial statements contained herein should be read in conjunction with the 2020 Form 10-K.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Principles of Consolidation

The unaudited consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Covid-19

Commencing in December 2019, the novel strain of coronavirus (“COVID-19”) began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition and/or results of operations is uncertain.

In response to COVID-19, the Company put into place certain restrictions, requirements and guidelines to protect the health of its employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of its employees, the Company’s daily execution has evolved into a largely virtual model. The Company plans to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that it determines to be in the interests of its employees, customers, and partners.

Management Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2020 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.

Significant Accounting Policies

The Company’s significant accounting policies are described in “Note 3: Summary of Significant Accounting Policies” of our 2020 Form 10-K.

Recently Adopted Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) issued the following accounting pronouncement which became effective for the Company in 2021, and which did not have a material impact on its condensed consolidated financial statements:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which modifies ASC 740 to simplify the accounting for income taxes. ASU 2019-12 addresses the accounting for hybrid tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of legal entities not subject to tax, intraperiod tax allocation exception to incremental approach, ownership changes in investments - changes from a subsidiary to an equity method investment, ownership changes in investments - changes from an equity method investment to a subsidiary, interim period accounting for enacted changes in tax law and year-to-date loss limitation in interim period tax accounting.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Segment reporting

As of September 30, 2021, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company’s business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company’s previously reported net loss.

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Asset Acquisitions

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Asset Acquisitions

Note 4 – Asset Acquisitions

Botanical Biotech Asset Acquisition

On March 11, 2021, Company entered into an Asset Acquisition Agreement, which was fully executed on March 17, 2021, with multiple sellers (each, a “Seller” and, collectively, the “Sellers”), pursuant to which the Sellers agreed to sell certain assets to Company, and to transfer such assets to Botanical Biotech, LLC, a newly-formed, wholly-owned subsidiary of the Company (“Transferee” or “BB”). The assets purchased (“BB Assets”) include certain materials and manufacturing equipment, marketing or promotional designs, brochures, advertisements, concepts, literature, books, media rights, rights against any other person or entity in respect of any of the foregoing and all other promotional properties, in each case primarily used, developed or acquired by the Sellers for use in connection with the ownership and operation of the BB Assets. In exchange for the BB Assets the Company will pay the Seller a maximum of $355,057, payable half in the form of cash or cash equivalent and half in the form of restricted shares of common stock of the Company (the “Shares”) at a price per Share equal to the average closing price of the common stock of the Company during the ten (10) consecutive trading days immediately preceding the closing. The Company has agreed to indemnify the Sellers for certain breaches of covenants, representations and warranties and for claims relating to the BB Assets following closing.

In conjunction with the BB asset acquisition, the Company entered into employment agreements with two sellers.

The Company and BB entered into an employment agreement with Lebsock dated March 11, 2021 (the “Lebsock Agreement”) pursuant to which Lebsock will serve as the President of BB for a term of three (3) years. The term of the Lebsock Agreement will automatically renew for an additional 3-year term unless other terminated by either party. Lebsock will receive a base salary equal to $120,000 per year, subject to an annual increase of not less than 3% on each anniversary of the Lebsock Agreement during the term. The Company also agreed to issue a stock bonus to Lebsock in accordance with the Company’s Incentive Stock Option Plan (“ISOP”) in an amount of $100,000, and to pay Lebsock a defined percentage of the EBITDA for BB each calendar quarter (“Profit Split”) according to a mutually agreed performance target (“Target”). EBITDA is defined as the earnings before interest, depreciation, taxes, depreciation, and amortization and will be paid as reported by the Company’s accountant and as reviewed by the Company’s auditor. It will be accumulative on a quarter-to-quarter basis, meaning if one quarter has a negative EBITDA, it would be offset against the following quarter’s positive EBITDA distribution. Lebsock has the option to accept the Profit Split in either direct cash payment or Shares, or any combination, at Lebsock’s option. Shares would be valued at the prior 10-day closing price and issued under SEC Rule 144 restriction.

Effective March 16, 2021, BB entered into a Consulting Agreement (the “Schlosser Agreement”) with Schlosser pursuant to which Schlosser has agreed to provide consulting services to BB for a period of 3 months in exchange for compensation equal to $10,000 per month. Schlosser will also be entitled to reimbursement for certain work-related expenses. Pursuant to the Schlosser Agreement, Schlosser also agreed to assign to BB all inventions developed by Schlosser in connection with his services to BB. The Schlosser Agreement also contains certain non-compete and confidentiality provisions. Per the Acquisition Agreement, Schlosser was to receive an employment agreement similar to the Lebsock Agreement; however, BB and Schlosser elected to enter into the Schlosser Agreement instead.

CO Botanicals Asset Acquisition

On August 12, 2021, The Company and CO Botanicals LLC (“COB”), a newly-formed, wholly-owned subsidiary of the Company entered into an Equipment Acquisition Agreement (the “TWS Agreement”) with TWS Pharma, LLC, (“TWS Pharma”) and L7 TWS Pharma, LLC (“L7 TWS” and, collectively with TWS Pharma, “TWS”). Pursuant to the TWS Agreement, COB agreed to purchase certain equipment and other assets from TWS (the “TWS Assets”) for a total purchase price equal to $5,316,774, with $1,250,000 payable via a 12-month promissory note issued by the Company to TWS Pharma with 6% simple interest and monthly payments of $100,000 due per month (the “TWS Note”), and $4,066,774 payable in shares of the Company’s common stock valued at $0.62 per share (the “TWS Shares”); provided, however, that $1,750,000 of the TWS Shares will be withheld in escrow for a period of ninety (90) days from the closing date, which will be deducted from the purchase price should the Company discover any defects or misrepresentations. The first $500,000 of payments of the TWS Note will be secured by 1,000,000 shares of the Company’s common stock to be held in escrow.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

TN Botanicals Asset Acquisition

On August 13, 2021 the Company and TN Botanicals LLC (“TNB”), a newly-formed, wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “MCB Agreement”) with Music City Botanicals, LLC, pursuant to which TNB agreed to purchase certain equipment, other assets, and intellectual property from MCB (the “MCB Assets”) for a total purchase price equal to $1,394,324, with $498,259 payable in cash and $896,065 payable in shares of the Company’s common stock valued at $0.62 per share (the “MCB Shares”).

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Inventories

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Note 5 – Inventories

Inventories consist of:

	September 30,		December 31,
	2021		2020
Raw materials	$	775,116	$	294,522
Finished goods		86,178		50,432
Total	$	861,294	$	344,954

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Property and Equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 6 – Property and Equipment

Property and equipment consist of:

	September 30,			December 31,
	2021			2020
Furniture and fixtures	$	21,724		$	21,727
Office equipment		12,378			12,378
Manufacturing equipment		6,849,314			397,230
Medical equipment		776,396			776,392
Leasehold improvements		26,902			26,902
Total		7,686,714			1,234,629
Accumulated depreciation		(348,029	)		(239,650	)
Net	$	7,338,685		$	994,979

Depreciation expense related to property and equipment was $140,961 and $92,999 for the nine month periods ending September 30, 2021 and 2020, respectively.

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 7 – Goodwill and Intangible Assets

Intangible assets consist of:

	September 30,			December 31,
	2021			2020
Technology, IP and patents	$	989,743		$	674,240
Hemp processing registration		85,200			85,200
Total		1,074,943			759,440
Accumulated amortization		(372,070	)		(236,431	)
	$	702,873		$	523,009

Amortization expense was $135,339 and $446,556 for the nine months ended September 30, 2021 and 2020, respectively.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Amortization expense for the balance of 2021, and for each of the next five years and thereafter is estimated to be as follows:

Three months ended December 31, 2021	$	24,278
Fiscal year 2022		97,112
Fiscal year 2023		97,112
Fiscal year 2024		97,112
Fiscal year 2025		86,966
Thereafter		300,293
	$	702,873

There was no goodwill activity during the nine months ended September 30, 2021 and 2020.

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Notes and Loans Payable

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Notes and Loans Payable

Note 8 – Notes and Loans Payable

Convertible Promissory Notes

In December 2020, the Company entered into a convertible promissory note (“ASOP Note I”) with Arena Special Opportunities Partners I, LP (“ASOP”). The principal balance of the note is $2,675,239 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 3,426,280 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 3,426,280 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note I. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $760,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $2,286,792.

In December 2020, the Company entered into a convertible promissory note (“ASOF Note I”) with Arena Special Opportunities Fund, LP (“ASOF”). The principal balance of the note is $102,539 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOF convertible promissory note was issued with 131,325 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 131,325 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note I. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $31,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $87,773.

In May 2021, the Company entered into a convertible promissory note (“ASOP Note II”) with Arena Special Opportunities Partners I, LP. The principal balance of the note is $1,193,135 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 1,529,670 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 1,529,670 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note II. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $277,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $1,073,250.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

In May 2021, the Company entered into a convertible promissory note (“ASOF Note II”) with Arena Special Opportunities Fund, LP. The principal balance of the note is $306,865 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 393,417 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 393,417 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note II. Aggregate amortization of the original issue discount for the nine months ended September 30, 2021 and 2020 was approximately $71,000 and $0, respectively. The principal balance outstanding at September 30, 2021 was $276,750.

PPP Loan

In 2020, the Company received a loan under the U.S. Small Business Administration’s Paycheck Protection Program established under the Coronavirus Aid Relief and Economic Security Act (“CARES act”) and related rules and regulations (the “PPP loan”) of $194,940.

Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of such loans after eight weeks, if the loan is used for eligible purposes, including to fund payroll costs, mortgage interest, rent and/or utility costs, and meet certain other requirements, including, the maintenance of employment and compensation levels. The Company plans to use the entire PPP Loan for qualifying expenses and expects to qualify for full or partial forgiveness under the program.

In May 2021, the Company received notice of forgiveness of the PPP loan in whole, including all accrued unpaid interest. In fiscal year 2021, the Company recorded the forgiveness of $194,940 of principal and $1,949 of accrued interest for a total of $196,889, which was included in gain on extinguishment of debt on the Consolidated Statements of Operations.

TWS Note

On August 12, 2021, pursuant to an Equipment Acquisition Agreement, the Company entered into a twelve-month promissory note of $1,250,000 with payments of $100,000 per month and interest at 6% (See Note 4). As of September 30, 2021, the total amount outstanding was $1,050,000.

Related Party Loan

In 2020, the Company entered into a loan payable to a director of the Company with a principal balance of $224,000. The loan bore interest at 12% per annum and was due in December 2020. The Company subsequently paid the loan in full in February 2021.

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Stockholders’ Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders’ Equity

Note 9 – Stockholders’ Equity

Preferred Stock

Each share of Series A Preferred Stock is convertible into 33,334 shares of CANB common stock and is entitled to 66,666 votes. All Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. In the event of a Liquidation Event, whether voluntary or involuntary, each holder may elect (i) to receive, in preference to the holders of Common Stock, a one-time liquidation preference on a per-share amount equal to the per-share value of preferred shares on the issuance date, as recorded in the Company’s financial records, or (ii) to participate pari passu with the Common Stock on an as-converted basis. Subject to any adjustments, the Series A holders shall be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock on an as converted basis.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Each share of Series B Preferred Stock has the first preference to dividends, distributions and payments upon liquidation, dissolution and winding-up of the Company, and is entitled to an accrued cumulative but not compounding dividend at the rate of 5% per annum whether or not declared. After six months of the issuance date, such share and any accrued but unpaid dividends can be converted into common stock at the conversion price which is the lower of (i) $0.0101; or (ii) the lower of the dollar volume weighted average price of CANB common stock on the trading day prior to the conversion day or the dollar volume weighted average price of CANB common stock on the conversion day. The shares of Series B Preferred Stock have no voting rights.

Each share of Series C Preferred Stock has preference to payment of dividends, if and when declared by the Company, compared to shares of our common stock. Each Preferred Series C share is convertible into 25,000 shares of common stock. The shares of Series C Preferred Stock have voting rights as if fully converted.

Each share of Series D Preferred Stock has 10,000 shares of voting rights only pari passu to common shares voting with no conversion rights and no equity participation. The Company can redeem Series D Preferred Stock at any time for par value.

On February 8, 2021, the Company’s Board of Directors approved the designation of the Series D Preferred Shares and the number of shares constituting such series, and the rights, powers, preferences, privileges and restrictions relating to such series. On March 27, 2021, the Company filed an amendment to its articles of incorporation to authorize 4,000 shares of a new Series D Preferred Stock with a par value of $0.001 each. All Series D Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. Each Series D Preferred Share shall have voting rights equal to 10,000 shares of Common Stock, adjustable at any recapitalization of the Company’s stock. In the event of a liquidation event, whether voluntary or involuntary, each holder shall have a liquidation preference on a per-share amount equal to the par value of such holder’s Series D Preferred Shares. The holders shall not be entitled to receive distributions made or dividends paid to the Company’s other stockholders. Except as otherwise required by law, for as long as any Series D Preferred Shares remain outstanding, the Company shall have the option to redeem any outstanding share of Series D Preferred Shares at any time for a purchase price of par value per share of Series D Preferred Shares (“Price per Share”). Should the Company desire to purchase Series D Preferred Shares, the Company shall provide the Holder with written notice and a check or cash in an amount equal to the number of shares of Series D Preferred Shares being purchased multiplied by the Price per Share. The shares of Series D Preferred Shares so purchased shall be deemed automatically cancelled and the Holder shall return the certificates for such share to the Corporation. On or around March 27, 2021, the Company issued Mr. Alfonsi, Mr. Ferro, and Mr. Teeple Series D Preferred Stock in the amount of 600 shares each and to COO Philip Scala in the amount of 150 shares, collectively representing 19,500,000 voting shares.

Common Stock

For the nine months ended September 30, 2021, the Company issued an aggregate of 9,323,540 shares of Common Stock under its Offering Statement on Form 1-A (File No. 024-11233) (the “Regulation A Offering”).

In addition, for the nine months ended September 30, 2021, the Company issued an aggregate of 5,537,056, 1,441,125, and 1,536,497 of Common Stock for asset acquisitions, services rendered, and in lieu of note and interest repayments, respectively.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

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Stock Options

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Options

Note 10 – Stock Options

A summary of stock options activity for the nine months ended September 30, 2021 is as follows:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, January 1, 2021		1,197,199	$	0.36		4.17
Granted		561,920	$	0.46		4.57
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, September 30, 2021		1,759,119	$	0.39		4.27

	Option Shares		Weighted Average Grant-Date Fair Value
Non-vested options, January 1, 2021		1,197,199	$	0.35
Granted		561,920	$	0.46
Vested		-		-
Forfeited		-		-
Non-vested options, September 30, 2021	$	1,759,119	$	0.36

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 11 – Income Taxes

The Company’s income tax provisions for the nine and three months ended September 30, 2021 and 2020 reflect the Company’s estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company’s estimated tax expense for the full year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions.

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Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Note 12 – Related Party Transactions

For the nine months ended September 30, 2021 and 2020, the Company paid fees to a service provider that is a relative of a director for professional services in the amount of $9,900 and $54,500, respectively.

As of September 30, 2021, the Company has amounts due to a related party of $320,000 which are expected to be repaid in the next twelve months.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13 – Commitments and Contingencies

Employment Agreements

On December 28, 2020, the Company entered into new three-year Employment Agreements with CEO Marco Alfonsi, CFO Stanley Teeple, and Pure Health Products LLC Pasquale Ferro. Under these agreements, they are to receive a i) base salary of fifteen thousand dollars ($15,000.00) per month, ii) is eligible to receive cash and or stock bonuses, iii) shall receive a stock bonus in accordance with the Company’s Incentive Stock Option Plan (“ISOP”) in an amount of one-hundred thousand dollars ($100,000) per year of the Agreement, iv) 200 shares of the Company’s Series C Preferred stock, v) usual and customary benefits including expense reimbursement, health and life insurance plan reimbursements and allowances. Phil Scala. Interim COO also received a similar agreement with a base compensation of fifty-two thousand annually, $100,000 in ISO, and 20 Preferred C shares.

Consulting Agreements

On July 15, 2020, we engaged an advisor to provide consulting services under an Investor Relations and Advisory Agreement (the “Advisory Agreement”). Pursuant to the Advisory Agreement, we agreed to pay the Consulting Firm a restricted common stock monthly fee of $5,000 per month for the initial 3 months., $6,250 per month for months 4-6., $7,500 per month for month 7 and after. At CANB’s option, the monthly fee may be payable in part or in whole in cash. Monthly Fee, such amount shall be paid via issuance of restricted common shares of CANB. The shares are to be issued in the name of Tysadco Partners. The number of common shares earned each month shall be calculated and issued on a quarterly basis prior to each 90-day period and based on the value at the closing price on the last day of the preceding period. All common shares earned by the Consultant pursuant to this Agreement shall be issued by CANB on a quarterly basis.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Lease Agreements

We determine if a contract contains a lease at inception. Our material operating leases are utilized for office space, processing and storage. Our leases generally have remaining terms of 1-3 years. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods.

Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term.

The Company leases office space in numerous medical facilities offices under month-to-month agreements.

Rent expense for the nine months ended September 30, 2021 and 2020 was $492,919 and $193,069, respectively.

At September 30, 2021, the future minimum lease payments under non-cancellable operating leases were:

Three months ended December 31, 2021	$	181,725
Fiscal year 2022		655,885
Fiscal year 2023		701,839
Fiscal year 2024		433,640
	$	1,973,089

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Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 14 – Subsequent Events

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements are issued and as of that date, except as reported below, there were no subsequent events that required adjustment or disclosure in the consolidated financial statements.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. Results for interim periods are not necessarily indicative of results to be expected for a full year.

The consolidated balance sheet information as of December 31, 2020 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). The interim consolidated financial statements contained herein should be read in conjunction with the 2020 Form 10-K.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Principles of Consolidation

Principles of Consolidation

The unaudited consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Covid-19

Covid-19

Commencing in December 2019, the novel strain of coronavirus (“COVID-19”) began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition and/or results of operations is uncertain.

In response to COVID-19, the Company put into place certain restrictions, requirements and guidelines to protect the health of its employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of its employees, the Company’s daily execution has evolved into a largely virtual model. The Company plans to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that it determines to be in the interests of its employees, customers, and partners.

Management Estimates

Management Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2020 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.

Significant Accounting Policies

Significant Accounting Policies

The Company’s significant accounting policies are described in “Note 3: Summary of Significant Accounting Policies” of our 2020 Form 10-K.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

The Financial Accounting Standards Board (“FASB”) issued the following accounting pronouncement which became effective for the Company in 2021, and which did not have a material impact on its condensed consolidated financial statements:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which modifies ASC 740 to simplify the accounting for income taxes. ASU 2019-12 addresses the accounting for hybrid tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of legal entities not subject to tax, intraperiod tax allocation exception to incremental approach, ownership changes in investments - changes from a subsidiary to an equity method investment, ownership changes in investments - changes from an equity method investment to a subsidiary, interim period accounting for enacted changes in tax law and year-to-date loss limitation in interim period tax accounting.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2021

Segment reporting

Segment reporting

As of September 30, 2021, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company’s business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.

Reclassifications

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company’s previously reported net loss.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of:

	September 30,		December 31,
	2021		2020
Raw materials	$	775,116	$	294,522
Finished goods		86,178		50,432
Total	$	861,294	$	344,954

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property and equipment consist of:

	September 30,			December 31,
	2021			2020
Furniture and fixtures	$	21,724		$	21,727
Office equipment		12,378			12,378
Manufacturing equipment		6,849,314			397,230
Medical equipment		776,396			776,392
Leasehold improvements		26,902			26,902
Total		7,686,714			1,234,629
Accumulated depreciation		(348,029	)		(239,650	)
Net	$	7,338,685		$	994,979

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consist of:

	September 30,			December 31,
	2021			2020
Technology, IP and patents	$	989,743		$	674,240
Hemp processing registration		85,200			85,200
Total		1,074,943			759,440
Accumulated amortization		(372,070	)		(236,431	)
	$	702,873		$	523,009

Schedule of Estimated Future Amortization Expense

Amortization expense for the balance of 2021, and for each of the next five years and thereafter is estimated to be as follows:

Three months ended December 31, 2021	$	24,278
Fiscal year 2022		97,112
Fiscal year 2023		97,112
Fiscal year 2024		97,112
Fiscal year 2025		86,966
Thereafter		300,293
	$	702,873

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Stock Options (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Summary of Stock Options Activity

A summary of stock options activity for the nine months ended September 30, 2021 is as follows:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, January 1, 2021		1,197,199	$	0.36		4.17
Granted		561,920	$	0.46		4.57
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, September 30, 2021		1,759,119	$	0.39		4.27

Schedule of Non-Vested Option

	Option Shares		Weighted Average Grant-Date Fair Value
Non-vested options, January 1, 2021		1,197,199	$	0.35
Granted		561,920	$	0.46
Vested		-		-
Forfeited		-		-
Non-vested options, September 30, 2021	$	1,759,119	$	0.36

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases

At September 30, 2021, the future minimum lease payments under non-cancellable operating leases were:

Three months ended December 31, 2021	$	181,725
Fiscal year 2022		655,885
Fiscal year 2023		701,839
Fiscal year 2024		433,640
	$	1,973,089

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Organization and Description of Business (Details Narrative)	Dec. 28, 2018
Pure Health Products, LLC [Member]
Restructuring Cost and Reserve [Line Items]
Business acquisition, percentage	100.00%

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Liquidity (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 190,529		$ 190,529		$ 457,798
Working capital	2,665,586		2,665,586
Net Income (Loss) Attributable to Parent	$ 3,232,616	$ 1,233,176	$ 8,152,487	$ 3,598,208

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Asset Acquisitions (Details Narrative)	Aug. 13, 2021 USD ($) $ / shares	Aug. 12, 2021 USD ($) $ / shares	Mar. 17, 2021 USD ($) Integer	Mar. 16, 2021 USD ($)	Mar. 11, 2021 USD ($)
President [Member] | Company's Incentive Stock Option Plan [Member]
Stock bonus					$ 100,000
Lebsock Agreement [Member] | President [Member]
Base salary per year					$ 120,000
Schlosser Agreement [Member]
Consulting fees				$ 10,000
Equipment Acquisition Agreement [Member]
Purchase price		$ 5,316,774
Long-term Debt, Gross		$ 1,250,000
Debt Instrument, Interest Rate, Stated Percentage		6.00%
Debt monthly payments due		$ 100,000
Shares Issued, Price Per Share | $ / shares		$ 0.62
Equipment Acquisition Agreement [Member] | Common Stock [Member]
Long-term Debt, Gross		$ 4,066,774
Debt Instrument, Description		that $1,750,000 of the TWS Shares will be withheld in escrow for a period of ninety (90) days from the closing date, which will be deducted from the purchase price should the Company discover any defects or misrepresentations. The first $500,000 of payments of the TWS Note will be secured by 1,000,000 shares of the Company’s common stock to be held in escrow
Asset Purchase Agreement [Member]
Purchase price	$ 1,394,324
Long-term Debt, Gross	498,259
Asset Purchase Agreement [Member] | Common Stock [Member]
Long-term Debt, Gross	$ 896,065
Shares Issued, Price Per Share | $ / shares	$ 0.62
Maximum [Member] | Asset Acquisition Agreement [Member] | Botanical Biotech, LLC, [Member]
Maximum amount paid			$ 355,057
Number of trading days | Integer			10
Maximum [Member] | Lebsock Agreement [Member] | President [Member]
Percentage of annual increase					3.00%

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Schedule of Inventories (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 775,116	$ 294,522
Finished goods	86,178	50,432
Total	$ 861,294	$ 344,954

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Summary of Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Furniture and fixtures	$ 21,724	$ 21,727
Office equipment	12,378	12,378
Manufacturing equipment	6,849,314	397,230
Medical equipment	776,396	776,392
Leasehold improvements	26,902	26,902
Total	7,686,714	1,234,629
Accumulated depreciation	(348,029)	(239,650)
Net	$ 7,338,685	$ 994,979

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Property and Equipment (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation	$ 140,961	$ 92,999

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Schedule of Intangible Assets (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Technology, IP and patents	$ 989,743	$ 674,240
Hemp processing registration	85,200	85,200
Total	1,074,943	759,440
Accumulated amortization	(372,070)	(236,431)
Intangible assets, net	$ 702,873	$ 523,009

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Schedule of Estimated Future Amortization Expense (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Three months ended December 31, 2021	$ 24,278
Fiscal year 2022	97,112
Fiscal year 2023	97,112
Fiscal year 2024	97,112
Fiscal year 2025	86,966
Thereafter	300,293
Intangible assets, net	$ 702,873	$ 523,009

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Goodwill and Intangible Assets (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 135,339	$ 446,556

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Notes and Loans Payable (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 12, 2021	May 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Short-term Debt [Line Items]
Aggregate amortization of the original issue discount					$ 1,168,918	$ 141,404
Gain on extinguishment of debt					196,889
Director [Member]
Short-term Debt [Line Items]
Debt instrument, interest rate							12.00%
Loan payable related party							$ 224,000
Equipment Acquisition Agreement [Member]
Short-term Debt [Line Items]
Total notes and loans payable	$ 1,250,000
Debt instrument, interest rate	6.00%
Debt outstanding			$ 1,050,000		$ 1,050,000
Debt monthly payments due	$ 100,000
Common Stock [Member]
Short-term Debt [Line Items]
Number of shaes issued			3,591,540		9,323,540
Common Stock [Member] | Equipment Acquisition Agreement [Member]
Short-term Debt [Line Items]
Total notes and loans payable	$ 4,066,774
Arena Special Opportunities Partners I, LP [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt instrument, maturity date		Jan. 31, 2022
Debt instrument, interest rate		12.00%
Aggregate amortization of the original issue discount					$ 760,000	0
Debt outstanding		$ 1,193,135	$ 2,286,792		2,286,792
Exercise price		$ 0.45
Arena Special Opportunities Partners I, LP [Member] | Convertible Notes Payable [Member] | Warrant [Member]
Short-term Debt [Line Items]
Number of shaes issued		1,529,670					3,426,280
Arena Special Opportunities Partners I, LP [Member] | Convertible Notes Payable [Member] | Common Stock [Member]
Short-term Debt [Line Items]
Number of shaes issued		1,529,670					3,426,280
Arena Special Opportunities Partners I, LP [Member] | Convertible Notes Payable One [Member]
Short-term Debt [Line Items]
Aggregate amortization of the original issue discount					277,000	0
Debt outstanding			1,073,250		1,073,250
Arena Special Opportunities Fund, LP [Member] | Convertible Notes Payable [Member]
Short-term Debt [Line Items]
Debt instrument, maturity date		Jan. 31, 2022					Jan. 31, 2022
Aggregate amortization of the original issue discount					31,000	0
Debt outstanding		$ 306,865	87,773		87,773		$ 102,539
Arena Special Opportunities Fund, LP [Member] | Convertible Notes Payable [Member] | Warrant [Member]
Short-term Debt [Line Items]
Number of shaes issued		393,417					131,325
Arena Special Opportunities Fund, LP [Member] | Convertible Notes Payable [Member] | Common Stock [Member]
Short-term Debt [Line Items]
Number of shaes issued							131,325
Arena Special Opportunities Fund, LP [Member] | Convertible Notes Payable Two [Member]
Short-term Debt [Line Items]
Aggregate amortization of the original issue discount					71,000	$ 0
Debt outstanding			$ 276,750		$ 276,750
Notes Payable [Member]
Short-term Debt [Line Items]
Total notes and loans payable							$ 2,675,239
Debt instrument, maturity date							Jan. 31, 2022
Debt instrument, interest rate							12.00%
Paycheck Protection Program Cares Act [Member]
Short-term Debt [Line Items]
Loans received							$ 194,940
Debt forgiveness		$ 194,940
Accrued interest		1,949
Gain on extinguishment of debt		$ 196,889
Promissory Note [Member] | Equipment Acquisition Agreement [Member]
Short-term Debt [Line Items]
Debt instrument, interest rate	600.00%

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Stockholders’ Equity (Details Narrative) - $ / shares			3 Months Ended		9 Months Ended
	Mar. 27, 2021	Feb. 08, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Class of Stock [Line Items]
Preferred stock shares authorized			5,000,000		5,000,000		5,000,000
Common Stock One [Member]
Class of Stock [Line Items]
Stock issued during the period					9,323,540
Commomn stock issued for asset acquisitions					5,537,056
Common stock issued for services rendered					1,441,125
Common shares isseud for interest repayments					1,536,497
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, voting rights					Each share of Series A Preferred Stock is convertible into 33,334 shares of CANB common stock and is entitled to 66,666 votes
Number of convertible shares			33,334		33,334
Preferred stock shares authorized			20		20		20
Preferred Stock, Par or Stated Value Per Share			$ 0		$ 0		$ 0
Stock issued during the period
Commomn stock issued for asset acquisitions
Common stock issued for services rendered
Common shares isseud for interest repayments
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, voting rights					The shares of Series B Preferred Stock have no voting rights.
Dividend, description					Each share of Series B Preferred Stock has the first preference to dividends, distributions and payments upon liquidation, dissolution and winding-up of the Company, and is entitled to an accrued cumulative but not compounding dividend at the rate of 5% per annum whether or not declared. After six months of the issuance date, such share and any accrued but unpaid dividends can be converted into common stock at the conversion price which is the lower of (i) $0.0101; or (ii) the lower of the dollar volume weighted average price of CANB common stock on the trading day prior to the conversion day or the dollar volume weighted average price of CANB common stock on the conversion day
Preferred Stock, Dividend Rate, Percentage					5.00%
Preferred stock shares authorized			500,000		500,000		500,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001		$ 0.001
Stock issued during the period
Commomn stock issued for asset acquisitions
Common stock issued for services rendered
Common shares isseud for interest repayments
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Number of convertible shares			25,000		25,000
Preferred stock shares authorized			2,000		2,000		2,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001		$ 0.001
Stock issued during the period
Commomn stock issued for asset acquisitions
Common stock issued for services rendered
Common shares isseud for interest repayments
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, voting rights	collectively representing 19,500,000 voting shares	Each Series D Preferred Share shall have voting rights equal to 10,000 shares of Common Stock, adjustable at any recapitalization of the Company’s stock. In the event of a liquidation event, whether voluntary or involuntary, each holder shall have a liquidation preference on a per-share amount equal to the par value of such holder’s Series D Preferred Shares.			Each share of Series D Preferred Stock has 10,000 shares of voting rights only pari passu to common shares voting with no conversion rights and no equity participation.
Preferred stock shares authorized	4,000		4,000		4,000		4,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001		$ 0.001		$ 0.001
Stock issued during the period
Commomn stock issued for asset acquisitions
Common stock issued for services rendered
Common shares isseud for interest repayments
Series D Preferred Stock [Member] | Stanley L. Teeple [Member]
Class of Stock [Line Items]
Stock issued during the period	600
Series D Preferred Stock [Member] | Marco Alfonsi [Member]
Class of Stock [Line Items]
Stock issued during the period	600
Series D Preferred Stock [Member] | Pasquale Ferro [Member]
Class of Stock [Line Items]
Stock issued during the period	600
Series D Preferred Stock [Member] | Philip Scala [Member]
Class of Stock [Line Items]
Stock issued during the period	150

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Summary of Stock Options Activity (Details)	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Share-based Payment Arrangement [Abstract]
Option Shares, Outstanding Beginning | shares	1,197,199
Weighted Average Exercise Price, Outstanding Beginning | $ / shares	$ 0.36
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 2 months 1 day
Option Shares, Granted | shares	561,920
Weighted Average Exercise Price, Granted | $ / shares	$ 0.46
Weighted Average Remaining Contractual Life (Years), Granted	4 years 6 months 25 days
Option Shares, Exercised | shares
Weighted Average Exercise Price, Exercised | $ / shares
Option Shares, Forfeited | shares
Weighted Average Exercise Price, Forfeited | $ / shares
Option Shares, Expired | shares
Weighted Average Exercise Price, Expired | $ / shares
Option Shares, Outstanding Ending | shares	1,759,119
Weighted Average Exercise Price, Outstanding Ending | $ / shares	$ 0.39
Weighted Average Remaining Contractual Life (Years), Outstanding Ending	4 years 3 months 7 days

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Schedule of Non-Vested Option (Details)	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Share-based Payment Arrangement [Abstract]
Option Shares, Outstanding Beginning | shares	1,197,199
Weighted Average Grant-Date Fair Value, Non-vested options, Beginning | $ / shares	$ 0.35
Option Shares, Granted | shares	561,920
Weighted Average Grant-Date Fair Value, Granted | $ / shares	$ 0.46
Option Shares, Vested | shares
Weighted Average Grant-Date Fair Value, Vested | $ / shares
Option Shares, Forfeited | shares
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares
Option Shares, Outstanding Ending | shares	1,759,119
Weighted Average Grant-Date Fair Value, Non-vested options, Ending | $ / shares	$ 0.36

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Related Party Transactions (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Due to related party	$ 320,000
Director [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Professional fees	$ 9,900	$ 54,500

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Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases (Details)	Sep. 30, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Three months ended December 31, 2021	$ 181,725
Fiscal year 2022	655,885
Fiscal year 2023	701,839
Fiscal year 2024	433,640
Total	$ 1,973,089

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Commitments and Contingencies (Details Narrative) - USD ($)			9 Months Ended
	Dec. 28, 2020	Jul. 15, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Rent expense			$ 492,919	$ 193,069
Minimum [Member]
Loss Contingencies [Line Items]
Lease remaining terms					1 year
Maximum [Member]
Loss Contingencies [Line Items]
Lease remaining terms					3 years
Series C Preferred Stock [Member]
Loss Contingencies [Line Items]
Preferred stock, shares issued			50			50
Executive Employment Agreement [Member] | Series C Preferred Stock [Member]
Loss Contingencies [Line Items]
Preferred stock, shares issued	200
Executive Employment Agreement [Member] | Pasquale Ferro [Member]
Loss Contingencies [Line Items]
Base salary per month	$ 15,000.00
Incentive stock option plan	100,000
Executive Employment Agreement [Member] | Philip Scala [Member]
Loss Contingencies [Line Items]
Employee cash compensation per month	$ 100,000
Executive Employment Agreement [Member] | Philip Scala [Member] | Series C Preferred Stock [Member]
Loss Contingencies [Line Items]
Preferred stock, shares issued	20
Investor Relations and Advisory Agreement [Member] | Restricted Stock [Member] | Initial 3 Months [Member]
Loss Contingencies [Line Items]
Professional fees		$ 5,000
Investor Relations and Advisory Agreement [Member] | Restricted Stock [Member] | 4-6 Months [Member]
Loss Contingencies [Line Items]
Professional fees		6,250
Investor Relations and Advisory Agreement [Member] | Restricted Stock [Member] | 7 Months and After [Member]
Loss Contingencies [Line Items]
Professional fees		$ 7,500