Attached files
file | filename |
---|---|
EX-99.1 - THERALINK TECHNOLOGIES, INC. | ex99-1.htm |
EX-99.3 - THERALINK TECHNOLOGIES, INC. | ex99-3.htm |
8-K/A - THERALINK TECHNOLOGIES, INC. | form8-ka.htm |
Exhibit 99.2
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 |
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 |
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 |
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 |