10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended March 31, 2023

OR

☐ 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

333-191083

RASNA THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

Nevada	39-2080103
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

420 Lexington Ave, Suite 2525, New York, NY 10170

(Address of principal executive offices) (Zip Code)

Telephone: (646) 396-4087

(Registrant’s telephone number)

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 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 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	☐

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 Act). Yes ☐  No ☒

Securities registered pursuant to Section 12(b) of the Act: None

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 771,811,360 shares of common stock were issued and outstanding as of May 15, 2023.

TABLE OF CONTENTS

		PAGE
PART 1	FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (Unaudited)	1
	Condensed Consolidated Balance Sheets – March 31, 2023 and September 30, 2022	1
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended March 31, 2023 and 2022	2
	Condensed Consolidated Statements of Changes in Shareholders’ Deficit for the Three and Six Months Ended March 31, 2023 and 2022	3
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2023 and 2022	4
	Notes to the Unaudited Condensed Consolidated Financial Statements	5
ITEM 2.	Management’s discussion and analysis of financial condition and results of operations	10
ITEM 3.	Controls and Procedures	15
PART II	OTHER INFORMATION
ITEM 1A	Risk factors	16
ITEM 6.	Exhibits	16
SIGNATURES		17

i

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RASNA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED) 

	March 31, 2023			September 30, 2022
ASSETS
Current assets:
Cash	$	2,221		$	39,363
Prepaid expenses		50,077			45,913
Total assets	$	52,298		$	85,276
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Liabilities:
Current liabilities:
Accounts payable and accrued expenses	$	1,465,252		$	1,351,320
Related party payables		236,918			195,322
Loan payable and accrued interest, related party		188,018			86,400
Note payable		32,385			20,420
Convertible notes payable, net - related party		—			20,900
Derivative liabilities		—			7,544
Total Current Liabilities		1,922,573			1,681,906
Loan payable - related party – Long term liabilities		—			91,967
Total Liabilities		1,922,573			1,773,873
Commitments and contingencies
Shareholders’ deficit
Preferred stock, $0.001 par value 20,000,000 shares authorized, none issued and outstanding		—			—
Common stock, $0.001 par value; 1,500,000,000 shares authorized and 711,811,360 issued and outstanding at March 31, 2023; 600,000,000 shares authorized and 179,979,361 issued and outstanding at September 30, 2022		771,811			179,979
Additional paid-in capital		25,858,025			22,352,491
Accumulated deficit		(28,500,111	)		(24,221,067	)
Total shareholders’ deficit		(1,870,275	)		(1,688,597	)
Total liabilities and shareholders’ deficit	$	52,298		$	85,276

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

RASNA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the  Three Months Ended March 31,						For the  Six Months Ended March 31,
	2023			2022			2023			2022
Operating (income)/ expenses:
General and administrative	$	93,955		$	126,041		$	198,811		$	198,697
Research and development		13,704			17,224			31,660			26,359
Common stock issued for services (see Note 6)		3,858,793			—			3,858,793			—
Gain on settlement of accounts payable		—			(150,000	)		—			(150,000	)
Gain on settlement of related party payable		—			(375,000	)		—			(375,000	)
Total operating expenses		3,966,452			(381,735	)		4,089,264			(299,944	)
Loss from operations		(3,966,452	)		381,735			(4,089,264	)		299,944
Other income/(expense):
Accretion of debt discount		(164,147	)		(77,153	)		(180,333	)		(280,553	)
Interest expense		(6,489	)		(20,706	)		(18,191	)		(39,001	)
Gain on derivative liability		7,888			10,114			8,744			38,969
Total other expenses		(162,748	)		(87,745	)		(189,780	)		(280,585	)
Income tax provision		—			—			—			—
Net (loss)/ income	$	(4,129,200	)	$	293,990		$	(4,279,044	)	$	19,359
Basic and net(loss)/ income per share attributable to common shareholders	$	0.00		$	0.00		$	0.00		$	0.00
Diluted net (loss)/ income per share attributable to common shareholders	$	0.00		$	0.00		$	0.00		$	0.00
Basic weighted average common shares outstanding		588,518,916			68,908,003			384,249,138			68,908,003
Diluted weighted average common shares outstanding		588,518,916			170,038,369			384,249,138			163,241,111

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

RASNA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

(UNAUDITED)

	Three Months Ended March 31, 2023
	Common Stock				Additional Paid-In		Accumulated			Total Shareholders’
	Shares		Amount		Capital		Deficit			Deficit
Balance at December 31, 2022		179,979,361	$	179,979	$	22,381,291	$	(24,370,911	)	$	(1,809,641	)
Issuance of stock for the conversion of promissory notes		209,773,333		209,773		—		—			209,773
Common stock issued for services		382,058,666		382,059		3,476,734		—			3,858,793
Net loss		—		—		—		(4,129,200	)		(4,129,200	)
Balance at March 31, 2023		771,811,360	$	771,811	$	25,858,025	$	(28,500,111	)	$	(1,870,275	)

	Three Months Ended March 31, 2022
	Common Stock				Additional Paid-In		Accumulated			Total Shareholders’
	Shares		Amount		Capital		Deficit			Deficit
Balance at December 31, 2021		68,908,003	$	68,909	$	21,236,238	$	(23,809,110	)	$	(2,503,963	)
Beneficial conversion feature related to convertible notes		—		—		72,000		—			72,000
Net income		—		—		—		293,990			293,990
Balance at March 31, 2022		68,908,003	$	68,909	$	21,308,238	$	(23,515,120	)	$	(2,137,973	)

	Six Months Ended March 31, 2023
	Common Stock				Additional Paid-In		Accumulated			Total Shareholders’
	Shares		Amount		Capital		Deficit			Deficit
Balance at October 1, 2022		179,979,361	$	179,979	$	22,352,491	$	(24,221,067	)	$	(1,688,597	)
Issuance of stock for the conversion of promissory notes		209,773,333		209,773		—		—			209,773
Common stock issued for services		382,058,666		382,059		3,476,734		—			3,858,793
Beneficial conversion feature related to convertible notes		—		—		28,800		—			28,800
Net loss		—		—		—		(4,279,044	)		(4,279,044	)
Balance at March 31, 2023		771,811,360	$	771,811	$	25,858,025	$	(28,500,111	)	$	(1,870,275	)

	Six Months Ended March 31, 2022
	Common Stock				Additional Paid-In		Accumulated			Total Shareholders’
	Shares		Amount		Capital		Deficit			Deficit
Balance at October 1, 2021		68,908,003	$	68,909	$	20,711,758	$	(23,534,479	)	$	(2,753,812	)
Beneficial conversion feature related to convertible notes		—		—		596,480		—			596,480
Net income		—		—		—		19,359			19,359
Balance at March 31, 2022		68,908,003	$	68,909	$	21,308,238	$	(23,515,120	)	$	(2,137,973	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

RASNA THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended March 31,
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/ income	$	(4,279,044	)	$	19,359
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash interest expense		18,191			39,002
Accretion of debt discount		180,333			280,553
Derivative liability		(8,744	)		(38,969	)
Common stock issued for services		3,858,793			—
Gain on settlement of accounts payable		—			(150,000	)
Gain on settlement of related party payable		—			(375,000	)
Changes in operating assets and liabilities:
Accounts payable and accrued expenses		113,932			41,801
Related party payable		41,596			14,376
Prepaid expenses		49,786			26,108
Net cash used in operating activities		(25,157	)		(142,770	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes payable		30,000			160,000
Payments on note payable		(41,985	)		—
Net cash (used in)/ provided by operating activities		(11,985	)		160,000
Net change in cash		(37,142	)		17,230
Cash, beginning of period		39,363			10,848
Cash, end of period	$	2,221		$	28,078
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Derivative liabilities in connection with issuance and extension of convertible notes.	$	1,200		$	74,520
Beneficial conversion feature related to issuance and extension of convertible notes	$	28,800		$	596,481
Issuance of common stock for conversions of promissory notes	$	209,773		$	—
Issuance of note payable relating to renewal of insurance policy	$	53,950		$	—

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

RASNA THERAPEUTICS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

1. GENERAL INFORMATION

Rasna Therapeutics, Inc. “Rasna Inc.” or the “Company”), is a biotechnology company incorporated in the State of Delaware on March 28, 2016. The Company is engaged in modulating the molecular target LSD1, which is implicated in the disease progression of leukemia and lymphoma.

These unaudited condensed consolidated financial statements are presented in United States dollars (“USD”) which is also the functional currency of the primary economic environment in which the Company operates.

Risks and Uncertainties

Management continues to evaluate the impact of inflation and the economic environment on the Company, and has concluded that while it is reasonably possible that inflation could have a negative effect on the Company’s financial position, results of its operations and/or ability to secure additional cash resources, there is no current impact as cash resources are currently secured by existing shareholders.

2. ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these unaudited condensed consolidated financial statements are set out below. These policies have been applied consistently to all the periods presented unless otherwise stated. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s annual report on Form 10-K for the Fiscal year ended September 30, 2022.

Basis of preparation

These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (the “SEC”) and United States generally accepted accounting principles (“US GAAP”) for interim reporting. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended September 30, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 9, 2023. The accompanying unaudited condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, such financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial information.

The results of the operations for the three and six months ended March 31, 2023 may not be indicative of the results that may be expected for the year ending September 30, 2023.

5

Principles of Consolidation

The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna Research Inc, and Rasna Research Inc’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of share based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial position and results of operations.

Net loss per Share

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted income per share includes potentially dilutive securities such as outstanding options, warrants and convertible loan notes, using various methods such as the treasury stock, modified treasury stock, and if converted methods in the determination of dilutive shares outstanding during each reporting period.

Diluted loss per share does not include any common stock equivalents as their effects are anti-dilutive.

The fully diluted earnings per share includes the shares issuable upon the conversion of the outstanding convertible loan notes for the three and six months to March 31, 2022.

	Three months March 31, 2022		Six months March 31, 2022
Net Income, numerator, basic computation		293,990		19,359
Interest expense		19,266		36,122
Net Income, numerator, diluted computation		313,256		55,481
Weighted average shares, denominator, basic computation		68,908,003		68,908,003
Effect of convertible notes		101,130,366		94,333,108
Weighted average shares, denominator, diluted computation		170,038,369		163,241,111
Earnings per share:
Basic	$	0.00	$	0.00
Diluted	$	0.00	$	0.00

The shares issuable on the exercise of options and warrants have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive.

	March 31, 2023		March 31, 2022
Stock options		938,675		3,648,675
Warrants		1,926,501		1,926,501
Total shares issuable upon exercise or conversion		2,865,176		5,575,176

Recent Accounting Pronouncements

The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

6

3. LIQUIDITY AND GOING CONCERN

The Company has no present revenue and has experienced net losses and significant cash outflows from cash used in operating activities since inception.

The Company is subject to a number of risks similar to those of other pre-commercial stage companies, including its dependence on key individuals, uncertainty of product development and generation of revenues, dependence on outside sources of capital, risks associated with research, development, testing, and obtaining related regulatory approvals of its pipeline products, suppliers and collaborators, successful protection of intellectual property, competition with larger, better-capitalized companies, successful completion of the Company’s development programs and, ultimately, the attainment of profitable operations are dependent on future events, including obtaining adequate financing to fulfill its development activities and generating a level of revenues adequate to support the Company’s cost structure.

The Company has experienced net losses and significant cash outflows from cash used in operating activities and as of March 31, 2023, had an accumulated deficit of $28,500,111, a net loss for the six months ended March 31, 2023 of $4,279,044 and net cash used in operating activities of $25,157.

The Company expects to continue to incur net losses and have significant cash outflows for at least the next 12 months and will require significant additional cash resources to launch new development phases of existing products in its pipeline.

In the event that the Company is unable to secure the additional cash resources needed, the Company may slow current development phases or halt new development phases in order to mitigate the effects of the costs of development. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date of this filing. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern one year from the date of this filing. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support the Company’s cost structure.

4. CONVERTIBLE NOTES

The table below summarizes outstanding convertible notes as of March 31, 2023 and March 31, 2022:

Balance of related party notes payable, net as of September 30, 2022	$	20,900
Issuance of debt		30,000
Accrued interest		8,540
Accretion of debt discount		180,333
Beneficial conversion feature related to issuance of convertible notes		(28,800	)
Derivative liabilities in connection with issuance of convertible notes		(1,200	)
Conversion of convertible notes		(209,773	)
Balance of related notes payable, net as of March 31, 2023	$	-
Balance of non-related notes payable, net as of September 30, 2021	$	371,997
Accrued Interest		14,847
Accretion of debt discount		152,090
Beneficial conversion feature related to issuance of convertible notes		(206,801	)
Derivative liabilities in connection with issuance of convertible notes		(28,200	)
Balance of non-related notes payable, net as of March 31, 2022	$	303,933
Balance of related notes payable, net as of September 30, 2021	$	230,287
Issuance of debt		160,000
Accrued Interest		21,275
Accretion of debt discount		128,463
Beneficial conversion feature related to issuance of convertible notes		(389,680	)
Derivative liabilities in connection with issuance of convertible notes		(46,320	)
Balance of related notes payable, net as of March 31, 2022	$	104,025

7

On December 23, 2022, the Company entered into a 16% Convertible Promissory Note with Panetta Partners Ltd. (the “Holder”) pursuant to which the Company issued a Convertible Promissory Note to the Holder. The Holder provided the Company with $30,000 in cash. The Note provides the Holder with the right to convert, at any time, all or any part of the outstanding principal and accrued but unpaid interest into shares of the Company’s common stock at a conversion price equal to the lower of (i) $0.001 per share or (ii) the price of the next equity financing, which raises at least US $1,000,000, subject to adjustments noted within the Agreement. The number of shares issuable upon a conversion shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of the Note to be converted by (y) the Conversion Price. The Note requires the Company to reserve and keep available out of its authorized and unissued shares of common stock the amount of shares that would be issued upon conversion of the Note, which includes the outstanding principal amount of the Note and interest accrued and to be accrued through the date of maturity.

On January 23, 2023, all outstanding notes with a principal value of $195,000 and accrued interest of $14,773 were converted into 209,773,333 shares with a par value of $0.001.

Embedded Derivative Liability

Under the promissory note agreement, the interest rate will reset upon the event of a default and an additional penalty of 6% will be accrued. The Company analyzed the conversion features of the note agreement for derivative accounting consideration under ASC 815, Derivatives and Hedging, and determined the interest rate resets met the definition of a derivative. It also noted that the Contingent Interest Rate feature required bifurcation from the host note contract and was to be accounted for at fair value. In accordance with ASC 815-15, the Company bifurcated the Contingent Interest Rate feature of the note and recorded a derivative liability.

The embedded derivatives for the notes are carried on the Company’s balance sheet at fair value. During the three and six months ended March 31, 2023, the Company recognized an additional derivative liability of $1,200 due to the issuance of the convertible notes. During the three and six months ended March 31, 2023, the Company recognized a gain on derivative liability of $7,888 and $8,744 due to the conversion of outstanding notes. During the three and six months to March 31, 2022, the Company recognized an additional $3,000 and $71,520 respectively due to the extension and issuance of the convertible notes. During the three and six month period ended March 31, 2022, the Company recognized a gain of $10,114 and $38,969 relating to the issuance and extension of convertible notes.

Beneficial Conversion Feature

The conversion features for all notes issued are in the money as of the issuance date and accordingly a beneficial conversion feature was recorded upon issuance. As the intrinsic value of the beneficial conversion feature exceeds the face value, the recorded beneficial conversion feature was limited to the gross proceeds less any debt discounts. As at March 31, 2023 this amounted to $28,800 for the new notes issued, which was fully amortized upon conversion of the notes. As at March 31, 2022 the beneficial conversion feature amounted to $596,481 for the amended and new notes issued.

5. NOTE PAYABLE

On March 31, 2023, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $53,950. Under the terms of the agreement, the Company made a down payment of $13,500, with the remaining balance financed over the remaining term at an annual percentage rate of 6.99%, resulting in finance charge of $1,187. Beginning in March 2023, the Company is making 9 monthly payments of $4,626, with the last payment made in November 2023. The interest expense for this note payable for the three months ending March 31, 2023 was $236.

On May 15, 2022, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $89,242. Under the terms of the agreement, the Company made a down payment of $10,210, with the remaining balance financed over the remaining term at an annual percentage rate of 7.328%. Beginning in May 2022, the Company is making 8 monthly payments of $10,210, with the last payment made in December 2022. At December 31, 2022, the note was fully paid. The interest expense for this note payable for the three months ending December 31, 2022 was $186.

8

6. EQUITY

In January 2023, the company issued 209,773,333 shares to Panetta Partners Ltd upon conversion of the outstanding promissory notes and accrued interest.

In March 2023, the Company issued 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company. At the date of issuance this was valued at $3,858,793, based on the issuance date stock price of $0.01 per share. 

7. RELATED PARTY TRANSACTIONS

The following is a summary of the related party transactions for the periods presented.

 Tiziana Life Sciences Plc (“Tiziana”)

The Company is party to a Shared Services Agreement with Tiziana, whereby the Company is charged for shared services and rent. Keeren Shah, the Company’s Chief Financial Officer, is also Chief Financial Officer of Tiziana, and the Company’s directors, Willy Simon and John Brancaccio are also non-executive directors of Tiziana.

As of March 31, 2023 and March 30, 2022, $18,041 and $25,822 respectively was due to Tiziana under services charged under the shared services agreement. This is recorded as a related party payable in the accompanying condensed consolidated balance sheets.

 In March 2020, Tiziana extended a loan facility to Rasna of $65,000. The loan is repayable within 18 months and incurs an interest charge of 8% per annum. In April 2020, the loan facility was extended by a further $7,000, so the loan facility totals $72,000. As of March 31, 2023, the amount due to Tiziana under this loan facility were $89,280. The amount due to Tiziana under this agreement as of March 31, 2022 was $83,520.

In July 2022, Tiziana extended another loan facility to Rasna of $85,000. The loan is repayable within 18 months and incurs an interest charge of 16% per annum. As of March 31, 2023, the amounts due to Tiziana under this loan facility were $98,738. The amount due to Tiziana under this agreement as of September 30, 2022 was $91,967.

Panetta Partners/ Gabriele Cerrone

Panetta Partners Limited, a shareholder of Rasna, is a company in which Gabriele Cerrone is a major shareholder and also serves as a director. As of December 31, 2022, and September 30, 2022, the balance due to Gabriele Cerrone was $175,000 for past consultancy services.

In July 2022, the Company entered into a promissory note with Panetta Partners Ltd for $165,000. The note carries an interest rate of 16% with a conversion price of $0.001 and is due for repayment by December 31, 2024. As at March 31, 2023, $184,580 was due with respect to notes issued. As at September 30, 2022 $171,233 was due with respect to notes issued.

In December 2022, the Company entered into an additional promissory note with Panetta Partners Ltd for $30,000 under the same terms. As at March 31, 2023, $31,307 was due with respect to this note issued.

In January 2023, the company issued 209,773,333 shares to Panetta Partners Ltd upon conversion of the outstanding promissory notes and accrued interest.

In March 2023, the Company issued 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company. At the date of issuance this was valued at $3,858,793 based on the issuance date stock price of $0.01.

Apart from the Convertible Promissory Notes, there is no interest charged on the balances with related parties. There are no defined repayment terms, and such amounts can be called for payment at any time.

Roberto Pellicciari and TES Pharma

Roberto Pellicciari is the majority shareholder of TES Pharma Srl, one of the Company’s principal shareholders. During the three and six months ended March 31, 2023 and March 31, 2022, Roberto Pellicciari did not supply the Company with consulting services.

In March 2022, the Company agreed to return back to TES Pharma S.R.L all intellectual property rights and assignments relating to NPM1. In exchange for this, TES Pharma S.R.L agreed to waive any payments due to them and their affiliates (which includes Roberto Pelliciari) by Rasna. this amounted to a $175,000 gain on the settlement of the related party payable to Roberto Pellicciari and a $150,000 gain on the settlement of accounts payable to TES Pharma and its affiliates. Rasna may be entitled to 20% of any future royalties and/or milestone payments upon successful completion of a clinical Proof of Concept study under certain agreed upon circumstances.

As of March 31, 2023, and September 30, 2022, the balance due to Roberto Pellicciari was $0 for past consultancy services. At March 31, 2023 and September 30, 2022, TES Pharma was owed $0.

9

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This section and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in the Company’s Annual Report on Form 10-K filed on February 9, 2023 under the heading “Risk Factors,” which are incorporated herein by reference.

We assume no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Unless expressly indicated or the context requires otherwise, the terms “Rasna,”,” the “Company,” “we,” “us,” and “our” refer to Rasna Therapeutics, Inc., a Nevada corporation, and, where appropriate, its wholly owned subsidiaries.

Company Background

To date, we have devoted substantially all of our resources to research and development efforts relating to our therapeutic candidates, including conducting clinical trials and developing manufacturing capabilities, in-licensing related intellectual property, protecting our intellectual property and providing general and administrative support for these operations. Since our inception, we have funded our operations primarily through the issuance of equity securities and convertible notes.

We anticipate that our expenses will increase substantially if and as we:

● initiate new clinical trials;

● seek to identify, assess, acquire and develop other products, therapeutic candidates and technologies;

● seek regulatory and marketing approvals in multiple jurisdictions for our therapeutic candidates that successfully complete clinical studies;

● establish collaborations with third parties for the development and commercialization of our products and therapeutic candidates;

● make milestone or other payments under our agreements pursuant to which we have licensed or acquired rights to intellectual property and technology;

● seek to maintain, protect, and expand our intellectual property portfolio;

● seek to attract and retain skilled personnel;

● incur the administrative costs associated with being a public company and related costs of compliance;

● create additional infrastructure to support our operations as a commercial stage public company and our planned future commercialization efforts; and

● experience any delays or encounter issues with any of the above.

10

We expect to continue to incur significant expenses and increasing losses for at least the next several years. Accordingly, we anticipate that we will need to raise additional capital in addition to the net proceeds from this offering in order to obtain regulatory approval for, and the commercialization of our therapeutic candidates. Until such time that we can generate meaningful revenue from product sales, if ever, we expect to finance our operating activities through public or private equity or debt financings, government or other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements or a combination of these approaches. If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization of any approved therapies or products or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which could materially adversely affect our business, financial condition and results of operations.

We only have one segment of activity, which is that of a biotechnology company focused on targeted drugs to treat diseases in oncology and immunology, mainly focusing on the treatment of leukemia and lymphoma.

Critical Accounting Policies and Estimates

This discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America, or US GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. In accordance with US GAAP, we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

Basis of preparation

The accompanying financial statements have been prepared in conformity with US GAAP. Any reference in these notes to applicable guidance is meant to refer to US GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“the FASB”).

Liquidity and Going Concern

We are subject to a number of risks similar to those of other pre-commercial stage companies, including our dependence on key individuals, uncertainty of product development and generation of revenues, dependence on outside sources of capital, risks associated with research, development, testing, and obtaining related regulatory approvals of its pipeline products, suppliers and collaborators, successful protection of intellectual property, competition with larger, better-capitalized companies, successful completion of our development programs and, ultimately, the attainment of profitable operations are dependent on future events, including obtaining adequate financing to fulfill our development activities and generating a level of revenues adequate to support our cost structure.

We have no present revenue and have experienced net losses and significant cash outflows from cash used in operating activities since inception, and at March 31, 2023, had a working capital deficit of $1,870,275.

11

We expect to continue to incur net losses and have significant cash outflows for at least the next twelve months and will require significant additional cash resources to launch new development phases of existing products in its pipeline. In the event that the Company is unable to secure the necessary additional cash resources needed, we may slow current development phases or halt new development phases in order to mitigate the effects of the costs of development. These conditions, among others, raise substantial doubt about our ability to continue as a going concern one year from the date of this filing. The accompanying condensed consolidated financial statements have been prepared assuming that we will continue as a going concern one year from the date of this filing. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support our cost structure.

The Company is currently looking into raising funds to progress its R&D pipeline.

Results of Operations

The following paragraphs set forth our results of operations for the periods presented. The period-to-period comparison of financial results is not necessarily indicative of future results.

Results of Operations for the Three months ended March 31, 2023 and 2022

The following table sets forth the summary statements of operations for the periods indicated: 

	For the Three Months Ended March 31,
	2023			2022
	(Unaudited)			(Unaudited)
Operating expenses/ (income):
General and administrative	$	93,955		$	126,041
Research and development		13,704			17,224
Common stock issued for services		3,858,793			—
Gain on settlement of accounts payable		—			(150,000	)
Gain on settlement of related party payable		—			(375,000	)
Total operating expenses/ (income)		3,966,452			(381,735	)
Loss/ (Income) from operations	$	(3,966,452	)	$	381,735
Other (expense)/ income:
Accretion of debt discount		(164,147	)		(77,153	)
Interest expense		(6,489	)		(20,706	)
Gain on derivative liability		7,888			10,114
Other expense	$	(162,748	)	$	(87,745	)
Net (loss)/ income	$	(4,129,200	)	$	293,990

Revenues

There were no revenues for the three months ended March 31, 2023, and 2022 because the Company does not have any commercial biopharmaceutical products.

12

Operating Income/(Expenses)

Operating expenses, consisting of research and development costs, consultancy fees, legal and professional fees and general and administrative expenses, for the three months ended March 31, 2023 increased to $3,966,452 from income of $381,735 for the three months ended March 31, 2022, an increase of $4,348,187. Most of this increase in expenses was due to the issuance of 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company, which at the date of issuance was valued at $3,858,793, offset by a $150,000 and $375,000 gain on the settlement of accounts payable and related party payable, respectively, due to the release of payment obligations to TES Pharma S.R.L and Eurema Consulting S.R.L (and their affiliates) as all intellectual property rights and assignments relating to NPM1 were returned to them by the Company in the three months to March 31, 2022, decreased general and administrative expenditure of $32,086 and decreased research and development patent expenditure of $3,520.

Other expense

During the three months ended March 31, 2023, other expense increased to $162,748 from $87,745 for the three months ended March 31, 2022. This increase is predominantly due to additional expenses of $86,994 due to the acceleration in the accretion of debt discount charges driven by the conversion of the outstanding notes in January 2023, a reduction in the gain on derivative liability of $2,226 offset by savings on interest expense of $14,217.

Net loss

Net loss for the three months ended March 31, 2023 increased to $4,129,200 from a net income of $293,990 for the three months ended March 31, 2022, a change of $4,423,190. This is predominantly due to the issuance of 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company, which at the date of issuance was valued at $3,858,793, additional expenses of $86,994 due to the acceleration in the accretion of debt discount charges driven by the conversion of the outstanding notes in January 2023, a reduction in the gain on derivative liability of $2,226 offset by a one off $150,000 and $375,000 gain on the settlement of accounts payable and related party payable, respectively, due to the release of payment obligations to TES Pharma S.R.L and Eurema Consulting S.R.L (and their affiliates) as all intellectual property rights and assignments relating to NPM1 were returned to them by the Company in the three months to March 31, 2022, decreased general and administrative expenditure of $32,086, decreased research and development patent expenditure of $3,520 and savings on interest expense of $14,217.

Results of Operations for the Six months ended March 31, 2023 and 2022

The following table sets forth the summary statements of operations for the periods indicated:

	For the  Six Months Ended March 31,
	2023			2022
	(Unaudited)			(Unaudited)
Operating expense/ (income):
General and administrative	$	198,811		$	198,697
Research and development		31,660			26,359
Common stock issued for services		3,858,793			—
Gain on settlement of accounts payable		—			(150,000	)
Gain on settlement of related party payable		—			(375,000	)
Total operating expense/ (income)		4,089,264			(299,944	)
(Loss)/ income from operations	$	(4,089,264	)	$	299,944
Other expense:
Accretion of debt discount		(180,333	)		(280,552	)
Interest expense		(18,191	)		(39,002	)
Gain on derivative liability		8,744			38,969
Other expense	$	(189,780	)	$	(280,585	)
Net (loss)/ income	$	(4,279,044	)	$	19,359

13

Revenues

There were no revenues for the six months ended March 31, 2023, and 2022 because the Company does not have any commercial biopharmaceutical products.

Operating Income/(Expenses)

Operating expenses, consisting of research and development costs, consultancy fees, legal and professional fees and general and administrative expenses, for the three months ended March 31, 2023 increased to $4,089,264 from income of $299,944 for the three months ended March 31, 2022, an increase of $4,389,208. Most of this increase in expenses was due to the issuance of 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company, which at the date of issuance was valued at $3,858,793, increased general and administrative expenditure of $114, increased research and development patent expenditure of $5,301 offset by a $150,000 and $375,000 gain on the settlement of accounts payable and related party payable, respectively, due to the release of payment obligations to TES Pharma S.R.L and Eurema Consulting S.R.L (and their affiliates) as all intellectual property rights and assignments relating to NPM1 were returned to them by the Company in the three months to March 31, 2022.

Other expense

During the six months ended March 31, 2023, other expense decreased to $189,780 from $280,585 for the six months ended March 31, 2022. This decrease is predominantly due to a decrease of $100,220 in the accretion of debt discount charges, savings in interest expenses of $20,810 offset by a reduction in the gain on derivative liability of $30,225.

Net loss

Net loss for the six months ended March 31, 2023 increased to $4,129,200 from a net income of $293,990 for the three months ended March 31, 2022, a change of $4,423,190. This is predominantly due to the issuance of 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company, which at the date of issuance was valued at $3,858,793, increased general and administrative expenditure of $114, increased research and development patent expenditure of $5,301, a reduction in the gain on derivative liability of $30,225 offset by a one off $150,000 and $375,000 gain on the settlement of accounts payable and related party payable, respectively, due to the release of payment obligations to TES Pharma S.R.L and Eurema Consulting S.R.L (and their affiliates) as all intellectual property rights and assignments relating to NPM1 were returned to them by the Company in the three months to March 31, 2022, a decrease of $100,219 in the accretion of debt discount charges, and savings in interest expenses of $20,811.

Liquidity and Capital Resources

We believe we will require significant additional cash resources to continue to launch new development phases of existing products in the Company’s pipeline. In the event that we are unable to secure the necessary additional cash resources needed, we may slow current development phases or halt new development phases in order to mitigate the effects of the costs of development. These conditions, among others, raise substantial doubt about our ability to continue as a going concern. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support our cost structure. We cannot be certain that additional funding will be available on acceptable terms, or at all. To the extent that we raise additional funds by issuing equity securities, our shareholders may experience significant dilution. Any debt financing, if available, may (i) involve restrictive covenants that impact our ability to conduct, delay, scale back or discontinue the development and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidates at an earlier stage than otherwise would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of rights to technologies, product candidates or products that we would otherwise seek to develop or commercialize its self on unfavorable terms.

 On December 23, 2022, the Company entered into a 16% Convertible Promissory Note again with Panetta Partners Ltd. (the “Holder”) pursuant to which the Company issued a Convertible Promissory Note to the Holder. The Holder provided the Company with $30,000 in cash under the same terms as the fifteenth note. Both notes were converted on January 23, 2023.

Capital Resources

The following table summarizes total current assets, liabilities and working capital deficiency as of the periods indicated:

	March 31, 2023 (Unaudited)			September 30, 2022 (unaudited)			Change
Current assets	$	52,298		$	85,276		$	(32,978	)
Current liabilities		1,922,573			1,681,906			240,667
Working capital deficit	$	(1,870,275	)	$	(1,596,630	)	$	(273,645	)

14

We had a cash balance of $2,221 and $39,363 on March 31, 2023, and September 30, 2022, respectively.

Liquidity

The following table sets forth a summary of our cash flows for the periods indicated:

	For the six months ended March 31,
	2023			2022			Increase/ (Decrease)
Net cash used in operating activities	$	(25,157	)	$	(142,770	)	$	(117,613	)
Net cash used in investing activities	$	-		$	-		$	-
Net cash provided by financing activities	$	(11,985	)	$	160,000		$	(171,985	)

Net Cash Used in Operating Activities

Net cash used in operating activities consists of net loss adjusted for the effect of changes in operating assets and liabilities.

Net cash used in operating activities was $25,157 for the six months ended March 31, 2023 compared to $142,770 for the six months ended March 31, 2022. The net loss of $4,279,044 for the six months ended March 31, 2023 was partially offset primarily by the non-cash issuance of support consideration settled in stock of $3,858,793, a gain on derivative liability of $8,744 adjusted for accretion of debt discount of $180,333, interest expense of $18,191 and changes in operating assets and liabilities of $206,314.

Net Cash Provided by Financing Activities

Net cash provided by financing activities consists of proceeds from the issuance of convertible notes of $30,000 offset by payments for on a note payable of $41,985 for the six months ended March 31, 2023 compared to proceeds from the issuance of convertible notes of $160,000 for the six months ended March 31, 2022.

ITEM 3. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within the required time periods. In designing and evaluating our disclosure controls and procedures, our management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of disclosure controls and procedures are met. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

As of the end of the period covered by this Report, the Company’s Chief Executive Officer, evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. Based on that evaluation, the Chief Executive officer concluded that, as of the date of the evaluation, the Company’s disclosure controls and procedures were not effective to provide reasonable assurance that the information required to be disclosed in the Company’s periodic filings under the Securities Exchange Act of 1934 is accumulated and communicated to management to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

15

PART II – OTHER INFORMATION

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K/A as of and for the year ended September 30, 2022, filed with the SEC on February 9, 2023.

ITEM 6. EXHIBITS

31.1	Certification of Principal Executive Officer and Principal Financial and Accounting Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
32.1	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

16

Signatures

Pursuant to the requirements of Section 13 or 15(d) 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.

	Rasna Therapeutics, Inc.
May 15, 2023	By:	/s/ Keeren Shah
		Name:	Keeren Shah
		Title:	Chief Financial Officer, (Principal Executive Officer and Principal Financial and Accounting Officer)

17

EX-31.1

Exhibit 31.1

CERTIFICATION BY PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Keeren Shah, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rasna Therapeutics, Inc.;

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

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

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

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

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

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

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

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

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

Dated: May 15, 2023

/s/ Keeren Shah
Name:	Keeren Shah
Title:	Principal Executive Officer and Principal Financial and Accounting Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER 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 Rasna Therapeutics, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Keeren Shah, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Dated: May 15, 2023

/s/ Keeren Shah
Name:	Keeren Shah
Title:	Principal Executive Officer and Principal Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2023	May 15, 2023
Document Information Line Items
Entity Registrant Name	Rasna Therapeutics Inc.
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		771,811,360
Amendment Flag	false
Entity Central Index Key	0001582249
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-191083
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	39-2080103
Entity Address, Address Line One	420 Lexington Ave
Entity Address, Address Line Two	Suite 2525
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10170
City Area Code	(646)
Local Phone Number	396-4087
Entity Interactive Data Current	Yes

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2023	Sep. 30, 2022
Current assets:
Cash	$ 2,221	$ 39,363
Prepaid expenses	50,077	45,913
Total assets	52,298	85,276
Current liabilities:
Accounts payable and accrued expenses	1,465,252	1,351,320
Related party payables	236,918	195,322
Loan payable and accrued interest, related party	188,018	86,400
Note payable	32,385	20,420
Convertible notes payable, net - related party		20,900
Derivative liabilities		7,544
Total Current Liabilities	1,922,573	1,681,906
Loan payable - related party – Long term liabilities		91,967
Total Liabilities	1,922,573	1,773,873
Commitments and contingencies
Shareholders’ deficit
Preferred stock, $0.001 par value 20,000,000 shares authorized, none issued and outstanding
Common stock, $0.001 par value; 1,500,000,000 shares authorized and 711,811,360 issued and outstanding at March 31, 2023; 600,000,000 shares authorized and 179,979,361 issued and outstanding at September 30, 2022	771,811	179,979
Additional paid-in capital	25,858,025	22,352,491
Accumulated deficit	(28,500,111)	(24,221,067)
Total shareholders’ deficit	(1,870,275)	(1,688,597)
Total liabilities and shareholders’ deficit	$ 52,298	$ 85,276

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	1,500,000,000	600,000,000
Common stock shares issued	711,811,360	179,979,361
Common stock shares outstanding	711,811,360	179,979,361

XML

Condensed Consolidated Statements Of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Operating (income)/ expenses:
General and administrative	$ 93,955	$ 126,041	$ 198,811	$ 198,697
Research and development	13,704	17,224	31,660	26,359
Common stock issued for services (see Note 6)	3,858,793		3,858,793
Gain on settlement of accounts payable		(150,000)		(150,000)
Gain on settlement of related party payable		(375,000)		(375,000)
Total operating expenses	3,966,452	(381,735)	4,089,264	(299,944)
Loss from operations	(3,966,452)	381,735	(4,089,264)	299,944
Other income/(expense):
Accretion of debt discount	(164,147)	(77,153)	(180,333)	(280,553)
Interest expense	(6,489)	(20,706)	(18,191)	(39,001)
Gain on derivative liability	7,888	10,114	8,744	38,969
Total other expenses	(162,748)	(87,745)	(189,780)	(280,585)
Income tax provision
Net (loss)/ income	$ (4,129,200)	$ 293,990	$ (4,279,044)	$ 19,359
Basic and net(loss)/ income per share attributable to common shareholders (in Dollars per share)	$ 0	$ 0	$ 0	$ 0
Diluted net (loss)/ income per share attributable to common shareholders (in Dollars per share)	$ 0	$ 0	$ 0	$ 0
Basic weighted average common shares outstanding (in Shares)	588,518,916	68,908,003	384,249,138	68,908,003
Diluted weighted average common shares outstanding (in Shares)	588,518,916	170,038,369	384,249,138	163,241,111

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Condensed Consolidated Statements of Changes in Shareholders’ Deficit (Unaudited) - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Sep. 30, 2021	$ 68,909	$ 20,711,758	$ (23,534,479)	$ (2,753,812)
Balance (in Shares) at Sep. 30, 2021	68,908,003
Beneficial conversion feature related to convertible notes		596,480		596,480
Net income (loss)			19,359	19,359
Balance at Mar. 31, 2022	$ 68,909	21,308,238	(23,515,120)	(2,137,973)
Balance (in Shares) at Mar. 31, 2022	68,908,003
Balance at Dec. 31, 2021	$ 68,909	21,236,238	(23,809,110)	(2,503,963)
Balance (in Shares) at Dec. 31, 2021	68,908,003
Beneficial conversion feature related to convertible notes		72,000		72,000
Net income (loss)			293,990	293,990
Balance at Mar. 31, 2022	$ 68,909	21,308,238	(23,515,120)	(2,137,973)
Balance (in Shares) at Mar. 31, 2022	68,908,003
Balance at Sep. 30, 2022	$ 179,979	22,352,491	(24,221,067)	(1,688,597)
Balance (in Shares) at Sep. 30, 2022	179,979,361
Beneficial conversion feature related to convertible notes		28,800		28,800
Issuance of stock for the conversion of promissory notes	$ 209,773			209,773
Issuance of stock for the conversion of promissory notes (in Shares)	209,773,333
Common stock issued for services	$ 382,059	3,476,734		3,858,793
Common stock issued for services (in Shares)	382,058,666
Net income (loss)			(4,279,044)	(4,279,044)
Balance at Mar. 31, 2023	$ 771,811	25,858,025	(28,500,111)	(1,870,275)
Balance (in Shares) at Mar. 31, 2023	771,811,360
Balance at Dec. 31, 2022	$ 179,979	22,381,291	(24,370,911)	(1,809,641)
Balance (in Shares) at Dec. 31, 2022	179,979,361
Issuance of stock for the conversion of promissory notes	$ 209,773			209,773
Issuance of stock for the conversion of promissory notes (in Shares)	209,773,333
Common stock issued for services	$ 382,059	3,476,734		3,858,793
Common stock issued for services (in Shares)	382,058,666
Net income (loss)			(4,129,200)	(4,129,200)
Balance at Mar. 31, 2023	$ 771,811	$ 25,858,025	$ (28,500,111)	$ (1,870,275)
Balance (in Shares) at Mar. 31, 2023	771,811,360

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/ income	$ (4,279,044)	$ 19,359
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash interest expense	18,191	39,002
Accretion of debt discount	180,333	280,553
Derivative liability	(8,744)	(38,969)
Common stock issued for services	3,858,793
Gain on settlement of accounts payable		(150,000)
Gain on settlement of related party payable		(375,000)
Changes in operating assets and liabilities:
Accounts payable and accrued expenses	113,932	41,801
Related party payable	41,596	14,376
Prepaid expenses	49,786	26,108
Net cash used in operating activities	(25,157)	(142,770)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes payable	30,000	160,000
Payments on note payable	(41,985)
Net cash (used in)/ provided by operating activities	(11,985)	160,000
Net change in cash	(37,142)	17,230
Cash, beginning of period	39,363	10,848
Cash, end of period	2,221	28,078
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Derivative liabilities in connection with issuance and extension of convertible notes.	1,200	74,520
Beneficial conversion feature related to issuance and extension of convertible notes	28,800	596,481
Issuance of common stock for conversions of promissory notes	209,773
Issuance of note payable relating to renewal of insurance policy	$ 53,950

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General Information

6 Months Ended

Mar. 31, 2023

General Information [Abstract]

GENERAL INFORMATION

1. GENERAL INFORMATION

Rasna Therapeutics, Inc. “Rasna Inc.” or the “Company”), is a biotechnology company incorporated in the State of Delaware on March 28, 2016. The Company is engaged in modulating the molecular target LSD1, which is implicated in the disease progression of leukemia and lymphoma.

These unaudited condensed consolidated financial statements are presented in United States dollars (“USD”) which is also the functional currency of the primary economic environment in which the Company operates.

Risks and Uncertainties

Management continues to evaluate the impact of inflation and the economic environment on the Company, and has concluded that while it is reasonably possible that inflation could have a negative effect on the Company’s financial position, results of its operations and/or ability to secure additional cash resources, there is no current impact as cash resources are currently secured by existing shareholders.

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Accounting Policies

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

ACCOUNTING POLICIES

2. ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these unaudited condensed consolidated financial statements are set out below. These policies have been applied consistently to all the periods presented unless otherwise stated. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s annual report on Form 10-K for the Fiscal year ended September 30, 2022.

Basis of preparation

These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (the “SEC”) and United States generally accepted accounting principles (“US GAAP”) for interim reporting. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended September 30, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 9, 2023. The accompanying unaudited condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, such financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial information.

The results of the operations for the three and six months ended March 31, 2023 may not be indicative of the results that may be expected for the year ending September 30, 2023.

Principles of Consolidation

The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna Research Inc, and Rasna Research Inc’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of share based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial position and results of operations.

Net loss per Share

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted income per share includes potentially dilutive securities such as outstanding options, warrants and convertible loan notes, using various methods such as the treasury stock, modified treasury stock, and if converted methods in the determination of dilutive shares outstanding during each reporting period.

Diluted loss per share does not include any common stock equivalents as their effects are anti-dilutive.

The fully diluted earnings per share includes the shares issuable upon the conversion of the outstanding convertible loan notes for the three and six months to March 31, 2022.

	Three months March 31, 2022		Six months March 31, 2022
Net Income, numerator, basic computation		293,990		19,359
Interest expense		19,266		36,122
Net Income, numerator, diluted computation		313,256		55,481
Weighted average shares, denominator, basic computation		68,908,003		68,908,003
Effect of convertible notes		101,130,366		94,333,108
Weighted average shares, denominator, diluted computation		170,038,369		163,241,111
Earnings per share:
Basic	$	0.00	$	0.00
Diluted	$	0.00	$	0.00

The shares issuable on the exercise of options and warrants have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive.

	March 31, 2023		March 31, 2022
Stock options		938,675		3,648,675
Warrants		1,926,501		1,926,501
Total shares issuable upon exercise or conversion		2,865,176		5,575,176

Recent Accounting Pronouncements

The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

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Liquidity and Going Concern

6 Months Ended

Mar. 31, 2023

Liquidity and Going Concern [Abstract]

LIQUIDITY AND GOING CONCERN

3. LIQUIDITY AND GOING CONCERN

The Company has no present revenue and has experienced net losses and significant cash outflows from cash used in operating activities since inception.

The Company is subject to a number of risks similar to those of other pre-commercial stage companies, including its dependence on key individuals, uncertainty of product development and generation of revenues, dependence on outside sources of capital, risks associated with research, development, testing, and obtaining related regulatory approvals of its pipeline products, suppliers and collaborators, successful protection of intellectual property, competition with larger, better-capitalized companies, successful completion of the Company’s development programs and, ultimately, the attainment of profitable operations are dependent on future events, including obtaining adequate financing to fulfill its development activities and generating a level of revenues adequate to support the Company’s cost structure.

The Company has experienced net losses and significant cash outflows from cash used in operating activities and as of March 31, 2023, had an accumulated deficit of $28,500,111, a net loss for the six months ended March 31, 2023 of $4,279,044 and net cash used in operating activities of $25,157.

The Company expects to continue to incur net losses and have significant cash outflows for at least the next 12 months and will require significant additional cash resources to launch new development phases of existing products in its pipeline.

In the event that the Company is unable to secure the additional cash resources needed, the Company may slow current development phases or halt new development phases in order to mitigate the effects of the costs of development. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a period of one year from the date of this filing. The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern one year from the date of this filing. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive cash flows adequate to support the Company’s cost structure.

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Convertible Notes

6 Months Ended

Mar. 31, 2023

Convertible Notes [Abstract]

CONVERTIBLE NOTES

4. CONVERTIBLE NOTES

The table below summarizes outstanding convertible notes as of March 31, 2023 and March 31, 2022:

Balance of related party notes payable, net as of September 30, 2022	$	20,900
Issuance of debt		30,000
Accrued interest		8,540
Accretion of debt discount		180,333
Beneficial conversion feature related to issuance of convertible notes		(28,800	)
Derivative liabilities in connection with issuance of convertible notes		(1,200	)
Conversion of convertible notes		(209,773	)
Balance of related notes payable, net as of March 31, 2023	$	-
Balance of non-related notes payable, net as of September 30, 2021	$	371,997
Accrued Interest		14,847
Accretion of debt discount		152,090
Beneficial conversion feature related to issuance of convertible notes		(206,801	)
Derivative liabilities in connection with issuance of convertible notes		(28,200	)
Balance of non-related notes payable, net as of March 31, 2022	$	303,933
Balance of related notes payable, net as of September 30, 2021	$	230,287
Issuance of debt		160,000
Accrued Interest		21,275
Accretion of debt discount		128,463
Beneficial conversion feature related to issuance of convertible notes		(389,680	)
Derivative liabilities in connection with issuance of convertible notes		(46,320	)
Balance of related notes payable, net as of March 31, 2022	$	104,025

On December 23, 2022, the Company entered into a 16% Convertible Promissory Note with Panetta Partners Ltd. (the “Holder”) pursuant to which the Company issued a Convertible Promissory Note to the Holder. The Holder provided the Company with $30,000 in cash. The Note provides the Holder with the right to convert, at any time, all or any part of the outstanding principal and accrued but unpaid interest into shares of the Company’s common stock at a conversion price equal to the lower of (i) $0.001 per share or (ii) the price of the next equity financing, which raises at least US $1,000,000, subject to adjustments noted within the Agreement. The number of shares issuable upon a conversion shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of the Note to be converted by (y) the Conversion Price. The Note requires the Company to reserve and keep available out of its authorized and unissued shares of common stock the amount of shares that would be issued upon conversion of the Note, which includes the outstanding principal amount of the Note and interest accrued and to be accrued through the date of maturity.

On January 23, 2023, all outstanding notes with a principal value of $195,000 and accrued interest of $14,773 were converted into 209,773,333 shares with a par value of $0.001.

Embedded Derivative Liability

Under the promissory note agreement, the interest rate will reset upon the event of a default and an additional penalty of 6% will be accrued. The Company analyzed the conversion features of the note agreement for derivative accounting consideration under ASC 815, Derivatives and Hedging, and determined the interest rate resets met the definition of a derivative. It also noted that the Contingent Interest Rate feature required bifurcation from the host note contract and was to be accounted for at fair value. In accordance with ASC 815-15, the Company bifurcated the Contingent Interest Rate feature of the note and recorded a derivative liability.

The embedded derivatives for the notes are carried on the Company’s balance sheet at fair value. During the three and six months ended March 31, 2023, the Company recognized an additional derivative liability of $1,200 due to the issuance of the convertible notes. During the three and six months ended March 31, 2023, the Company recognized a gain on derivative liability of $7,888 and $8,744 due to the conversion of outstanding notes. During the three and six months to March 31, 2022, the Company recognized an additional $3,000 and $71,520 respectively due to the extension and issuance of the convertible notes. During the three and six month period ended March 31, 2022, the Company recognized a gain of $10,114 and $38,969 relating to the issuance and extension of convertible notes.

Beneficial Conversion Feature

The conversion features for all notes issued are in the money as of the issuance date and accordingly a beneficial conversion feature was recorded upon issuance. As the intrinsic value of the beneficial conversion feature exceeds the face value, the recorded beneficial conversion feature was limited to the gross proceeds less any debt discounts. As at March 31, 2023 this amounted to $28,800 for the new notes issued, which was fully amortized upon conversion of the notes. As at March 31, 2022 the beneficial conversion feature amounted to $596,481 for the amended and new notes issued.

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Note Payable

6 Months Ended

Mar. 31, 2023

Notes Payable [Abstract]

NOTE PAYABLE

5. NOTE PAYABLE

On March 31, 2023, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $53,950. Under the terms of the agreement, the Company made a down payment of $13,500, with the remaining balance financed over the remaining term at an annual percentage rate of 6.99%, resulting in finance charge of $1,187. Beginning in March 2023, the Company is making 9 monthly payments of $4,626, with the last payment made in November 2023. The interest expense for this note payable for the three months ending March 31, 2023 was $236.

On May 15, 2022, the Company entered into a one-year Directors and Officers Liability Insurance agreement for $89,242. Under the terms of the agreement, the Company made a down payment of $10,210, with the remaining balance financed over the remaining term at an annual percentage rate of 7.328%. Beginning in May 2022, the Company is making 8 monthly payments of $10,210, with the last payment made in December 2022. At December 31, 2022, the note was fully paid. The interest expense for this note payable for the three months ending December 31, 2022 was $186.

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Equity

6 Months Ended

Mar. 31, 2023

Stockholders' Equity Note [Abstract]

Equity

6. EQUITY

In January 2023, the company issued 209,773,333 shares to Panetta Partners Ltd upon conversion of the outstanding promissory notes and accrued interest.

In March 2023, the Company issued 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company. At the date of issuance this was valued at $3,858,793, based on the issuance date stock price of $0.01 per share. 

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Related Party Transactions

6 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

7. RELATED PARTY TRANSACTIONS

The following is a summary of the related party transactions for the periods presented.

 Tiziana Life Sciences Plc (“Tiziana”)

The Company is party to a Shared Services Agreement with Tiziana, whereby the Company is charged for shared services and rent. Keeren Shah, the Company’s Chief Financial Officer, is also Chief Financial Officer of Tiziana, and the Company’s directors, Willy Simon and John Brancaccio are also non-executive directors of Tiziana.

As of March 31, 2023 and March 30, 2022, $18,041 and $25,822 respectively was due to Tiziana under services charged under the shared services agreement. This is recorded as a related party payable in the accompanying condensed consolidated balance sheets.

 In March 2020, Tiziana extended a loan facility to Rasna of $65,000. The loan is repayable within 18 months and incurs an interest charge of 8% per annum. In April 2020, the loan facility was extended by a further $7,000, so the loan facility totals $72,000. As of March 31, 2023, the amount due to Tiziana under this loan facility were $89,280. The amount due to Tiziana under this agreement as of March 31, 2022 was $83,520.

In July 2022, Tiziana extended another loan facility to Rasna of $85,000. The loan is repayable within 18 months and incurs an interest charge of 16% per annum. As of March 31, 2023, the amounts due to Tiziana under this loan facility were $98,738. The amount due to Tiziana under this agreement as of September 30, 2022 was $91,967.

Panetta Partners/ Gabriele Cerrone

Panetta Partners Limited, a shareholder of Rasna, is a company in which Gabriele Cerrone is a major shareholder and also serves as a director. As of December 31, 2022, and September 30, 2022, the balance due to Gabriele Cerrone was $175,000 for past consultancy services.

In July 2022, the Company entered into a promissory note with Panetta Partners Ltd for $165,000. The note carries an interest rate of 16% with a conversion price of $0.001 and is due for repayment by December 31, 2024. As at March 31, 2023, $184,580 was due with respect to notes issued. As at September 30, 2022 $171,233 was due with respect to notes issued.

In December 2022, the Company entered into an additional promissory note with Panetta Partners Ltd for $30,000 under the same terms. As at March 31, 2023, $31,307 was due with respect to this note issued.

In January 2023, the company issued 209,773,333 shares to Panetta Partners Ltd upon conversion of the outstanding promissory notes and accrued interest.

In March 2023, the Company issued 382,058,666 shares to Panetta Partners Ltd as consideration for their continued financial support of the company. At the date of issuance this was valued at $3,858,793 based on the issuance date stock price of $0.01.

Apart from the Convertible Promissory Notes, there is no interest charged on the balances with related parties. There are no defined repayment terms, and such amounts can be called for payment at any time.

Roberto Pellicciari and TES Pharma

Roberto Pellicciari is the majority shareholder of TES Pharma Srl, one of the Company’s principal shareholders. During the three and six months ended March 31, 2023 and March 31, 2022, Roberto Pellicciari did not supply the Company with consulting services.

In March 2022, the Company agreed to return back to TES Pharma S.R.L all intellectual property rights and assignments relating to NPM1. In exchange for this, TES Pharma S.R.L agreed to waive any payments due to them and their affiliates (which includes Roberto Pelliciari) by Rasna. this amounted to a $175,000 gain on the settlement of the related party payable to Roberto Pellicciari and a $150,000 gain on the settlement of accounts payable to TES Pharma and its affiliates. Rasna may be entitled to 20% of any future royalties and/or milestone payments upon successful completion of a clinical Proof of Concept study under certain agreed upon circumstances.

As of March 31, 2023, and September 30, 2022, the balance due to Roberto Pellicciari was $0 for past consultancy services. At March 31, 2023 and September 30, 2022, TES Pharma was owed $0.

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Accounting Policies, by Policy (Policies)

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of preparation

Basis of preparation

These unaudited condensed consolidated financial statements have been prepared following the requirements of the Securities and Exchange Commission (the “SEC”) and United States generally accepted accounting principles (“US GAAP”) for interim reporting. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended September 30, 2022 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 9, 2023. The accompanying unaudited condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management, such financial statements include all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim financial information.

The results of the operations for the three and six months ended March 31, 2023 may not be indicative of the results that may be expected for the year ending September 30, 2023.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiary, Rasna Research Inc, and Rasna Research Inc’s subsidiary, Arna Therapeutics Limited. All significant intercompany accounts and transactions have been eliminated in the preparation of the accompanying consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates its estimates on an ongoing basis, including those related to the fair values of share based awards, income taxes and contingent liabilities, among others. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial position and results of operations.

Net loss per Share

Net loss per Share

Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted income per share includes potentially dilutive securities such as outstanding options, warrants and convertible loan notes, using various methods such as the treasury stock, modified treasury stock, and if converted methods in the determination of dilutive shares outstanding during each reporting period.

Diluted loss per share does not include any common stock equivalents as their effects are anti-dilutive.

The fully diluted earnings per share includes the shares issuable upon the conversion of the outstanding convertible loan notes for the three and six months to March 31, 2022.

	Three months March 31, 2022		Six months March 31, 2022
Net Income, numerator, basic computation		293,990		19,359
Interest expense		19,266		36,122
Net Income, numerator, diluted computation		313,256		55,481
Weighted average shares, denominator, basic computation		68,908,003		68,908,003
Effect of convertible notes		101,130,366		94,333,108
Weighted average shares, denominator, diluted computation		170,038,369		163,241,111
Earnings per share:
Basic	$	0.00	$	0.00
Diluted	$	0.00	$	0.00

The shares issuable on the exercise of options and warrants have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive.

	March 31, 2023		March 31, 2022
Stock options		938,675		3,648,675
Warrants		1,926,501		1,926,501
Total shares issuable upon exercise or conversion		2,865,176		5,575,176

Recent Accounting Pronouncements

Recent Accounting Pronouncements

The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

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Accounting Policies (Tables)

6 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of diluted earnings per share issuable upon the conversion of the outstanding convertible loan notes

	Three months March 31, 2022		Six months March 31, 2022
Net Income, numerator, basic computation		293,990		19,359
Interest expense		19,266		36,122
Net Income, numerator, diluted computation		313,256		55,481
Weighted average shares, denominator, basic computation		68,908,003		68,908,003
Effect of convertible notes		101,130,366		94,333,108
Weighted average shares, denominator, diluted computation		170,038,369		163,241,111
Earnings per share:
Basic	$	0.00	$	0.00
Diluted	$	0.00	$	0.00

Schedule of diluted earnings per share issuable upon the conversion of the outstanding convertible loan notes

	March 31, 2023		March 31, 2022
Stock options		938,675		3,648,675
Warrants		1,926,501		1,926,501
Total shares issuable upon exercise or conversion		2,865,176		5,575,176

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Convertible Notes (Tables)

6 Months Ended

Mar. 31, 2023

Convertible Notes [Abstract]

Schedule of convertible notes

Balance of related party notes payable, net as of September 30, 2022	$	20,900
Issuance of debt		30,000
Accrued interest		8,540
Accretion of debt discount		180,333
Beneficial conversion feature related to issuance of convertible notes		(28,800	)
Derivative liabilities in connection with issuance of convertible notes		(1,200	)
Conversion of convertible notes		(209,773	)
Balance of related notes payable, net as of March 31, 2023	$	-
Balance of non-related notes payable, net as of September 30, 2021	$	371,997
Accrued Interest		14,847
Accretion of debt discount		152,090
Beneficial conversion feature related to issuance of convertible notes		(206,801	)
Derivative liabilities in connection with issuance of convertible notes		(28,200	)
Balance of non-related notes payable, net as of March 31, 2022	$	303,933
Balance of related notes payable, net as of September 30, 2021	$	230,287
Issuance of debt		160,000
Accrued Interest		21,275
Accretion of debt discount		128,463
Beneficial conversion feature related to issuance of convertible notes		(389,680	)
Derivative liabilities in connection with issuance of convertible notes		(46,320	)
Balance of related notes payable, net as of March 31, 2022	$	104,025

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Accounting Policies (Details) - Schedule of diluted earnings per share issuable upon the conversion of the outstanding convertible loan notes - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Schedule Of Diluted Earnings Per Share Issuable Upon The Conversion Of The Outstanding Convertible Loan Notes Abstract
Net Income, numerator, basic computation	$ 293,990		$ 19,359
Interest expense	19,266		36,122
Net Income, numerator, diluted computation	$ 313,256		$ 55,481
Weighted average shares, denominator, basic computation (in Shares)	68,908,003		68,908,003
Effect of convertible notes	$ 101,130,366		$ 94,333,108
Weighted average shares, denominator, diluted computation (in Shares)	170,038,369		163,241,111
Basic (in Dollars per share)	$ 0	$ 0	$ 0	$ 0
Diluted (in Dollars per share)	$ 0	$ 0	$ 0	$ 0

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Accounting Policies (Details) - Schedule of common shares issuable upon the exercise of outstanding options, the exercise of warrants - shares	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares issuable upon exercise or conversion	2,865,176	5,575,176
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares issuable upon exercise or conversion	938,675	3,648,675
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares issuable upon exercise or conversion	1,926,501	1,926,501

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Liquidity and Going Concern (Details)	6 Months Ended
	Mar. 31, 2023 USD ($)
Liquidity and Going Concern [Abstract]
Accumulated deficit	$ 28,500,111
Net loss	4,279,044
Net cash used in operating activities	$ 25,157

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Convertible Notes (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 23, 2023	Dec. 23, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Convertible Notes (Details) [Line Items]
Percentage of convertible promissory note		16.00%
Cash		$ 30,000
Debt discount (in Dollars per share)		$ 0.001
Price of equity financing		$ 1,000,000
Principal value	$ 195,000
Accrued interest	$ 14,773
Converted amount (in Shares)	209,773,333
Converted par value (in Dollars per share)	$ 0.001
Interest rate			6.00%		6.00%
Additional derivative liability			$ 1,200		$ 1,200
Gain on derivative liability			$ 7,888		8,744
Recognized a gain derivative liability				$ 10,114		$ 38,969
Notes issued					31,307
Beneficial Conversion Feature [Member]
Convertible Notes (Details) [Line Items]
Notes issued					$ 28,800
Notes issued						596,481
Embedded Derivative Liability [Member]
Convertible Notes (Details) [Line Items]
Recognized a gain derivative liability				$ 3,000		$ 71,520

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Convertible Notes (Details) - Schedule of convertible notes - USD ($)	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related party notes payable [Member]
Convertible Notes (Details) - Schedule of convertible notes [Line Items]
Beginning balance	$ 20,900	$ 230,287
Issuance of debt	30,000	160,000
Accrued interest	8,540	21,275
Accretion of debt discount	180,333	128,463
Beneficial conversion feature related to issuance of convertible notes	(28,800)	(389,680)
Derivative liabilities in connection with issuance of convertible notes	(1,200)	(46,320)
Conversion of convertible notes	(209,773)
Ending balance		104,025
Non-related notes payable [Member]
Convertible Notes (Details) - Schedule of convertible notes [Line Items]
Beginning balance		371,997
Accrued interest		14,847
Accretion of debt discount		152,090
Beneficial conversion feature related to issuance of convertible notes		(206,801)
Derivative liabilities in connection with issuance of convertible notes		(28,200)
Ending balance		$ 303,933

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Note Payable (Details) - USD ($)		1 Months Ended	3 Months Ended
	May 15, 2022	Mar. 31, 2023	Dec. 31, 2022
Notes Payable [Abstract]
Insurance agreement	$ 89,242	$ 53,950
Term agreement	$ 10,210	$ 13,500
Annual percentage	7.328%	6.99%
Annual rate finance charge		$ 1,187
Payments	$ 10,210	4,626
Interest expense		$ 236	$ 186

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Equity (Details) - USD ($)	Mar. 31, 2023	Jan. 31, 2023
Stockholders' Equity Note [Abstract]
Shares issued	382,058,666	209,773,333
Issuance value (in Dollars)	$ 3,858,793
Stock price (in Dollars per share)	$ 0.01

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Related Party Transactions (Details) - USD ($)	1 Months Ended					6 Months Ended		12 Months Ended
	Jan. 31, 2023	Sep. 30, 2022	Jul. 31, 2022	Mar. 31, 2022	Mar. 31, 2020	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022	Dec. 31, 2022
Related Party Transactions (Details) [Line Items]
Loan facility						$ 89,280
Agreement amount						83,520
Loan facility amount			$ 85,000
Interest charge, percentage			16.00%
Consulting services amount		$ 0				0		$ 0
Promissory note			$ 165,000
Interest rate			16.00%
Conversion price per share (in Dollars per share)			$ 0.001
Notes issued						$ 31,307
Common stock shares (in Shares)	209,773,333					382,058,666
Common stock issuance value						$ 3,858,793
Stock price (in Dollars per share)						$ 0.01
Company owed						$ 0		0
Tiziana Life Sciences Plc [Member]
Related Party Transactions (Details) [Line Items]
Service charges						18,041	$ 25,822
Loan facility, description					In March 2020, Tiziana extended a loan facility to Rasna of $65,000. The loan is repayable within 18 months and incurs an interest charge of 8% per annum. In April 2020, the loan facility was extended by a further $7,000, so the loan facility totals $72,000.
Loan facility amount						$ 98,738
Roberto Pellicciari and TES Pharma [Member]
Related Party Transactions (Details) [Line Items]
Consulting services amount		91,967						91,967
Related party payable				$ 175,000
Accounts payable				$ 150,000			$ 150,000
Royalties future percentage				20.00%
Gabriele Cerrone [Member]
Related Party Transactions (Details) [Line Items]
Consulting services amount		175,000						$ 175,000	$ 175,000
Additional promissory note amount									$ 30,000
Convertible promissory notes, description						Apart from the Convertible Promissory Notes, there is no interest charged on the balances with related parties.
Panetta Partners [Member]
Related Party Transactions (Details) [Line Items]
Notes issued		$ 171,233				$ 184,580