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Company Overview
9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Company Overview

1. Company Overview

 

Immune Therapeutics Inc. (the “Company” or “IMUN”) is a Florida corporation trading on the OTC-Pink. The Company is a drug development and commercialization company. We identify, evaluate, and seek to acquire technologies in the medical device and drug development sectors with the intent to further develop them and move them to commercialization.

 

Going Concern

 

As of September 30, 2022, the Company had $185,447 in cash and a stockholders’ deficit of $2,602,278. For the nine months ended September 30, 2022, the Company reported a net loss of $3,257,151 which included non-recurring charges and gains including: non-cash loss from the settlement of certain obligations upon the issuance of common shares, non-cash charge for the write-off the Company’s investment in common shares of Statera BioPharma, Inc., the revaluation of the fair market value of certain warrants, and a non-cash gain upon the assignment of obligations in connection with the issuance of a license with Forte Animal Health Inc.

 

For the nine months ended September 30, 2021, the Company reported net income of $3,790,645 which included several non-recurring gains and losses including: a gain recognized upon the receipt of common stock and a related charge recognizing a decline in the market value of these shares at quarter end and a gain on the assignment of debt upon the reversal of a derivative liability.

 

Since our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. During the nine months ended September 30, 2022, we issued a total of 81,615,483 shares of common stock in exchange for the cancellation, conversion or exercise of outstanding promissory notes and warrants. This issuance has resulted in substantial dilution to our shareholders. The sale of additional equity securities could result in additional dilution to our shareholders. Alternatively, the incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand or even continue our business operations and could harm our overall business prospects.

 

Historically, the Company has relied on the funding of operations through private equity financings and management expects operating losses and negative cash flows to continue at more significant levels in the future. As the Company continues to incur losses, transition to profitability is dependent upon the successful development, approval, and commercialization of product candidates as they become available and the achievement of a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional cash. Management intends to fund future operations through additional private or public debt or equity offerings and may seek additional capital through arrangements with strategic partners or from other sources.

 

Working capital on September 30, 2022 is not sufficient to meet the cash requirements to fund planned operations through the next twelve months without additional sources of cash. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.

 

Management is continuing to develop strategies to re-capitalize the Company and position it for future growth. Key steps to this process include:

 

  Improve the condition of the balance sheet via license arrangements and capital infusions.
  Identify and acquire late-stage assets for commercialization.
  Build out operational infrastructure to generate revenue opportunities to grow shareholder value.

 

There can be no guarantees that the Company will be successful in securing adequate capital to continue operations and in identifying and acquiring assets for future development. If the Company is unable to secure new working capital, other alternative strategies will be required.

 

Historically, the Company has been able to acquire and develop assets, spin them out and retain both an equity stake and royalties and milestone payments. In so doing, the Company has acted as an incubator for late-stage drug development. Management believes that this strategy can continue to be successful. At this time, the Company is reviewing several opportunities which it may pursue as soon as funding is available. At present no definitive actions have been taken.

 

 

There can be no guarantees that the Company will be successful in:

 

  Executing its restructuring plan;
  Securing adequate capital to continue operations; or
  Identifying and acquiring assets for future development.

 

Company History

 

Immune Therapeutics, Inc. (the “Company” or “IMUN”) was initially incorporated in Florida on December 2, 1993, as Resort Clubs International, Inc. (“Resort Clubs”). It was formed to manage and market golf course properties in resort markets throughout the United States. Galliano International Ltd. (“Galliano”) was incorporated in Delaware on May 27, 1998 and began trading in November 1999 through the filing of a 15C-211. On November 10, 2004, Galliano merged with Resort Clubs. Resort Clubs was the surviving corporation. On August 23, 2010, Resort Clubs changed its name to pH Environmental Inc. (“pH Environmental”). On April 23, 2012, pH Environmental completed a name change to TNI BioTech, Inc., and on April 24, 2012, we executed a share exchange agreement for the acquisition of all the outstanding shares of TNI BioTech IP, Inc. On September 4, 2014, a majority of our shareholders approved an amendment to our Amended and Restated Articles of Incorporation, as amended, to change our name to Immune Therapeutics, Inc. We filed our name change amendment with the Secretary of State of Florida on October 27, 2014, changing our name to Immune Therapeutics, Inc.