THERALINK TECHNOLOGIES, INC. - FORM 8-K/A - EX-99.2

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EX-99.3 - THERALINK TECHNOLOGIES, INC.	ex99-3.htm
EX-99.1 - THERALINK TECHNOLOGIES, INC.	ex99-1.htm
8-K/A - THERALINK TECHNOLOGIES, INC.	form8-ka.htm

Exhibit 99.2

AVANT DIAGNOSTICS, INC

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2020			September 30, 2019
	(Unaudited)
ASSETS
Current Assets:
Cash	$	1,207,898		$	569,960
Accounts receivable		17,454			-
Prepaid expenses		98,907			-
Total current assets		1,324,258			569,960

Other Assets:
Intellectual Property		3,075,868			3,209,602
Website development cost, net		1,596			2,125
Patent costs, net		160,500			124,668
Furniture and Equipment		441,150			366,359
Leasehold improvements		126,000
Other Assets		19,505			25,805
					3,728,559
Total Assets	$	5,148,878		$	4,298,519

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		209,587			1,449,683
Accrued expenses		234,495			446,039
Accrued payroll and benefits		19,402			478,333
Deferred compensation		46,443
Other current liabilities		(4,717	)
Notes Payable					24,759
Derivative liability		-			277,569
Total current liabilities		505,210			2,676,383

Long Term Liabilities
Notes payable - capital leases		173,718			-
Notes payable - other		89,996			-
Total current liabilities		263,714			-

Total Liabilities		768,923			2,676,383

Commitments and Contingencies

Stockholders’ Equity:
Preferred stock, $0.001 par value; 50,000,000 shares authorized
Capital Stock
Series A preferred stock $0.001 par value; 2,211,00 and 2,051,000 shares outstanding as of March 31, 2020 and September 30, 2019, respectively		2,211			2,051
Series B preferred stock $0.001 par value; 25,615,870 and 25,615,870 shares outstanding as of March 31, 2020 and September 30, 2019, respectively		25,615			25,615
Series C preferred stock $0.001 par value; 150,000 and 150,000 shares outstanding as of March 31, 2020 and September 30, 2019, respectively		150			150
Series D preferred stock $0.001 par value; 1,915,000 and 1,358,000 shares outstanding as of March 31, 2020 and September 30, 2019, respectively		1,915			1,358
Series E preferred stock $0.001 par value; 2,490,000 and 0 shares outstanding as of March 31, 2020 and September 30, 2019, respectively		2,490			-
Common Stock $0.00001 par value, 450,000,000 shares authorized; 347,009,000 and 347,009,000 shares outstanding as of March 31, 2020 and September 30, 2019, respectively		3,470			3,470
Additional paid-in capital		40,633,389			37,345,682
Cashless warrants		76			67
Accumulated deficit		(36,289,361	)		(35,756,257	)

Total Stockholders’ Equity (Deficit)		4,379,955			1,622,136

Total Liabilities and Stockholders’ Equity	$	5,148,878		$	4,298,519

F-1

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THREE AND SIX MONTHS ENDED MARCH 31, 2020

(UNAUDITED)

	For the Three Months Ended						For the Six Months Ended
	March 31,						March 31,
	2020			2019			2020			2019
Revenue		17,454			-			68,464			-

Cost of revenue		158,600			-			185,201			-
								-
Gross profit		(141,146	)		-			(116,737	)		-

Operating expenses:
Selling, general and administrative		83,798			255,106			553,600			531,838
Research and development		1,773			-			8,364			-
Professional fees		(61,531	)		182,110			44,830			418,139
Bad debt expense		(203,989	)		-			(203,989	)		-
Total operating expenses		(179,949	)		437,216			402,805			949,977

Loss from operations		38,803			(437,216	)		(519,542	)		(949,977	)

Other income (expense):
Interest income (expense)		54,285			(31,744	)		46,802			(38,489	)
Director fees		(20,000	)					(20,000	)
Legal judgement/settlement		(34,064	)					(34,064	)
Unrealized gain (loss) on Investment		(1,400	)		8,500			(6,300	)		(5,300	)
(Loss) gain on change in fair value of derivative		-			107,143			-			193,546
Total other income (expense)		(1,179	)		83,899			(13,562	)		149,757

Net Loss		37,624			(353,317	)		(533,104	)		(800,220	)

Comprehensive loss:
Net loss		37,624			(353,317	)		(533,104	)		(800,220	)
Unrealized loss on available for sale securities		-			-			-			-

Comprehensive loss	$	37,624		$	(353,317	)	$	(533,104	)	$	(800,220	)

Net Loss Per Common Share:
Basic		0.000108424			-0.001018178			-0.001536283			-0.00230605

Weighted Average Common Shares Outstanding:
Basic		347,009,000			347,009,000			347,009,000			347,009,000

F-2

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2020

(UNAUDITED)

	Warrants				Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balances at September 30, 2019		67	$	67		29,174,000	$	29,174		346,957,722	$	3,470	$	37,345,682	$	(35,756,257	)	$	1,622,136

Sale of Preferred Stock		-		-		2,632,000		2,632		-		-		2,713,736		-			2,716,368

Net loss		-		-		-		-		-		-		-		(570,728	)		(570,728	)

Balances at December 31, 2019		67	$	67		31,806,000	$	31,806		346,957,722	$	3,470	$	40,059,418	$	(36,326,985	)	$	3,767,776

Sale of Preferred Stock		9		9		575,000		575		-		-		573,968		-			574,552

Net loss		-		-		-		-		-		-		-		37,624			37,624

Balances at March 31, 2020		76	$	76		32,381,000	$	32,381		346,957,722	$	3,470	$	40,633,386	$	(36,289,361	)	$	4,379,951

F-3

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2019

(UNAUDITED)

	Warrants				Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Equity
Balances at September 30, 2018		67	$	67		27,397	$	27,397		336,957,722	$	3,370	$	35,569,540	$	(33,530,848	)	$	2,069,526

Sale of Preferred Stock		-		-		259		259		-		-		259,211		-			259,470

Net loss		-		-		-		-		-		-		-		(452,103	)		(452,103	)

Balances at December 31, 2018		67	$	67		27,656	$	27,656		336,957,722	$	3,370	$	35,828,751	$	(33,982,951	)	$	1,876,893

Sale of Preferred Stock		-		-		319		319		-		-		319,151		-			319,470

Net loss		-		-		-		-		-		-		-		(800,220	)		(800,220	)

Balances at March 31, 2019		67	$	67		27,975	$	27,975		336,957,722	$	3,370	$	36,147,902	$	(34,783,171	)	$	1,396,143

F-4

AVANT DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended
	March 31,
	2020			2019
Cash Flows from Operating Activities:
Net loss	$	(533,104	)	$	(800,220	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		229,579			114,104
Stock-based compensation expenses		290,770			-
Adjustments to accounts payable		(1,136,167	)		-
Loss on change in fair value of derivatives		-			(68,546	)
Accounts receivable		(17,454	)		-
Furniture and equipment & other fixed assets		(331,939	)		(120,199	)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(98,907	)		-
Accounts payable and other liabilities		(211,077	)		396,797
Due to related party		(27,217	)		20,610
Reduction in notes payable		(200,332	)		-
Accrued liabilities		(623,434	)		92,539

Net cash used in operating activities		(2,659,282	)		(364,915	)

Cash Flows from Investing Activities:
Licensing costs		-			56,000
Other Assets		6,300			5,300

Net cash provided by (used in) investing activities		6,300			61,300

Cash Flows from Financing Activities:
Proceeds from sale of preferred stock		3,290,920			319,470

Net cash provided by financing activities		3,290,920			319,470

Net change in cash		637,938			15,855

Cash at beginning of period		569,960			30,896

Cash at end of period	$	1,207,898		$	46,751

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	14,930		$	-
Income taxes	$	-		$	-

Non-cash investing and financing activities:
Preferred stock issued for debt settlement	$	290,770		$	-

F-5

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