What changed in this filing

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Item 1. Financial Statements

2021-02-12 compared with 2020-11-09 · 212 added, 152 removed, 555 unchanged (40% of the section changed)

3 unchanged sentences

Condensed Consolidated Balance Sheets

September 30,

CURRENT ASSETS

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LIABILITIES AND STOCKHOLDERS’

EQUITY (DEFICIT)

CURRENT LIABILITIES

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STOCKHOLDERS’

EQUITY (DEFICIT)

Preferred Stock, $0.001 par value, 5,000,000 shares authorized, none issued and outstanding

Common Stock, $0.001 par value, 50,000,000 shares authorized;

18,600,158 and 17,870,261 shares issued and outstanding as of September 30, 2020 and March 31, 2020, respectively

Common Stock, $0.001 par value, 50,000,000 shares authorized, 18,832,648 shares issued and outstanding as of December 31, 2020 and 17,870,261 as of March 31, 2020

Additional paid-in capital

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TOTAL STOCKHOLDERS’

(DEFICIT) EQUITY

TOTAL LIABILITIES AND STOCKHOLDERS’

(DEFICIT) EQUITY

The accompanying

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Three Months Ended

September 30,

Six Months Ended

September 30,

Nine Months Ended

Operating expenses

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Condensed Consolidated Statements of Stockholders’

Equity (Deficit)

Stockholders’

as of March 31, 2020

Equity (Deficit)

Balance as of March 31, 2020

$ (8,569,034 )

placement of common stock

as of June 30, 2020

Private placement of common stock

Stock-based compensation

Balance as of June 30, 2020

$ (10,443,191 )

as of September 30, 2020

Stock-based compensation

Balance as of September 30, 2020

$ (12,303,920 )

Private placement of common stock

Stock-based compensation

Balance as of December 31, 2020

(14,174,465 )

Stockholders’

as of March 31, 2019

Balance as of March 31, 2019

$ (3,248,161 )

issued for services

as of June 30, 2019

Shares issued for services

Stock-based compensation

Balance as of June 30, 2019

$ (4,370,359 )

as of September 30, 2019

Stock-based compensation

Balance as of September 30, 2019

$ (5,517,925 )

Stock-based compensation

Balance as of December 31, 2019

The accompanying

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Condensed Consolidated Statements of Cash Flows

Six Months Ended

September 30,

Nine Months Ended

$ (5,605,431 )

6 unchanged sentences

Changes in assets and liabilities:

Other assets and prepaid expenses

Security deposit

Accounts payable and accrued expenses

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business operations from 2002 until approximately 2017, when it acquired all of the issued and outstanding shares of Quasuras,

Inc., a Delaware corporation (Quasuras).

(Quasuras), a Delaware corporation.

As the major shareholder of Quasuras retained control of both the Company and Quasuras,

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capital will be offered on terms and conditions acceptable to the Company.

As discussed in note 4, the Company is currently

pursuing additional equity financing through a private placement of its common stock.

In addition, the Company obtained a loan

from Silicon Valley Bank in April 2020 (see note 3).

As discussed in note 9, in February 2021, the

Company issued convertible promissory notes to investors to fund its operations.

In addition, during 2020, the Company obtained

additional equity financing through a private placement of its common stock (see note 4), and the Company obtained a loan from

Silicon Valley Bank in April 2020 (see note 3).

The Company’s

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and cash flows for the interim periods presented.

The operating results for the three months and six months ended September 30,

The operating results for the three months and nine months ended December 31,

2020 are not necessarily indicative of the results that may be expected for the year ending March 31, 2021 or for any other future

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Depreciation is computed using the straight-line method over the estimated useful lives

of the assets, generally three to five years.

of the assets, generally three to seven years.

Depreciation is recorded in operating expenses in the condensed consolidated statements

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Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period.

For the six months

ended September 30, 2020 and 2019, outstanding options to purchase 3,480,088 and 1,630,394 shares of common stock, respectively,

months ended December 31, 2020 and 2019, outstanding options to purchase 3,512,588 and 2,526,443 shares of common stock, respectively,

were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive.

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comprehensive loss may include certain changes in equity that are excluded from net loss.

For the three and six months ended September

30, 2020 and 2019, the Company’s comprehensive loss was the same as its net loss.

For the three and nine months ended

December 31, 2020 and 2019, the Company’s comprehensive loss was the same as its net loss.

NOTE 2 –

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Future minimum

payments under the facility operating lease, as of September 30, 2020, are listed in the table below.

payments under the facility operating lease, as of December 31, 2020, are listed in the table below.

Annual Fiscal Years

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Present value of lease liabilities

paid for amounts included in the measurement of lease liabilities was $49,652 for the six months ended September 30, 2020.

expense was $26,884 and $9,000 for the three months ended September 30, 2020 and 2019, respectively, and $53,768 and $18,000 for

the six months ended September 30, 2020 and 2019, respectively.

paid for amounts included in the measurement of lease liabilities was $86,891 for the nine months ended December 31, 2020.

expense was $26,884 and $7,500 for the three months ended December 31, 2020 and 2019, respectively, and $80,654 and $25,500 for

the nine months ended December 31, 2020 and 2019, respectively.

NOTE 3 –

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was made through Silicon Valley Bank (the Lender), and the Company entered into a U.S.

Small Business Administration Paycheck

Small Business Administration (SBA) Paycheck

Protection Program Note (the Agreement) with the Lender evidencing the PPP Note.

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of the PPP Note is due in April 2022.

Interest will accrue on the outstanding principal balance of the PPP Note at a fixed rate

of 1.0% per annum, which shall be deferred for the first six months of the term of the PPP Note.

Monthly payments will be due

and payable beginning in February 2021 and continue each month thereafter until maturity of the PPP Note.

The Company may prepay

principal of the PPP Note at any time in any amount without penalty.

The Agreement contains customary events of default relating

to, among other things, payment defaults, breach of representations and warranties or provisions of the PPP Note.

The occurrence

of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company,

and/or filing suit and obtaining judgment against the Company.

Interest accrues on the outstanding principal balance of the PPP Note at a fixed rate of

1.0% per annum.

Monthly payments will be due and payable beginning in September 2021 and continue each month thereafter until

maturity of the PPP Note.

The Company may prepay principal of the PPP Note at any time in any amount without penalty.

The Agreement

contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties

or provisions of the PPP Note.

The occurrence of an event of default may result in the repayment of all amounts outstanding, collection

of all amounts owing from the Company, and/or filing suit and obtaining judgment against the Company.

In October 2020,

the Company applied to the Lender for forgiveness of the PPP Note.

No assurance is provided that the Company will obtain forgiveness

of the PPP Note in whole or in part.

the Company applied to the Lender for forgiveness of the PPP Note, and the Lender submitted the Company’s forgiveness application

to the SBA to be processed.

No assurance is provided that the Company will obtain forgiveness of the PPP Note in whole or in part.

NOTE 4 –

STOCKHOLDERS’

EQUITY (DEFICIT)

2020, the Company initiated a private placement of shares of its common stock (the 2020 Placement).

As of September 30, 2020,

the Company had sold 729,897 shares of common stock, at a purchase price of $2.87 per share, for aggregate proceeds of $2,094,806.

The Company had recorded $924,000 of the proceeds as common stock issuable in the stockholders’

equity section of the consolidated

balance sheet at March 31, 2020 for 321,950 shares that were issued by the Company during the quarter ended June 30, 2020.

As of December 31, 2020, the

Company had sold 962,387 shares of common stock, at a purchase price of $2.87 per share, for gross proceeds of $2,762,054.

the terms of the common stock purchase agreements between the Company and the investors, the Company must use commercially reasonable

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the shares of common stock sold.

2020, the Company sold an additional 125,000 shares of common stock for proceeds of $358,750.

NOTE 5 –

2017 Equity Incentive Plan

In October 2017,

the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the Plan) with 3,000,000 shares of

common stock reserved for issuance.

2017, the Company’s board of directors (the Board) approved the 2017 Equity Incentive Plan (the Plan) with 3,000,000 shares

of common stock reserved for issuance.

In January 2020, the Board approved an increase in the number of shares reserved for issuance

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based on the grant date fair value.

The unamortized compensation cost, as of September 30, 2020, was $2,568,504 related to stock

options and is expected to be recognized as expense over a weighted-average period of approximately 2.28 years.

the six months ended September 30, 2020, the Company granted options to purchase 302,976 shares of its common stock to employees,

The unamortized compensation cost at December 31, 2020, was $2,354,079 related to stock options

and is expected to be recognized as expense over a weighted-average period of approximately 2.06 years.

the nine months ended December 31, 2020, the Company granted options to purchase 355,476 shares of its common stock to employees,

directors and consultants.

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the options was determined to be $825,838 of which $223,878 was recorded as stock-based compensation expense and included in the

condensed consolidated statement of operations for the six months ended September 30, 2020.

condensed consolidated statement of operations for the nine months ended December 31, 2020.

The following assumptions were used

in the fair value method calculations:

Six Months Ended

Three Months Ended

Nine Months Ended

Risk-free interest rates

1.51% - 1.69 %

1.34% - 2.41 %

Expected life (years)

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Balance at September 30, 2020

Options granted

Options cancelled and returned to the Plan

Balance at December 31, 2020

There were no

stock options exercised during the six months ended September 30, 2020 and 2019.

stock options exercised during the nine months ended December 31, 2020 and 2019.

The following

table summarizes the range of outstanding and exercisable options as of September 30, 2020:

of Exercise Price

The intrinsic value per share is

calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise

price of the option at September 30, 2020.

table summarizes the range of outstanding and exercisable options at December 31, 2020:

Options Outstanding

Options Exercisable

Range of Exercise Price

$0.66 - $3.16

The intrinsic

value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading

market over the exercise price of the option at December 31, 2020.

The Company’s common stock has minimal trading volume,

and the closing price is not necessarily representative of the fair value.

is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise

of stock options as financing cash flows in the consolidated statements of cash flows.

For the six months ended September 30,

For the nine months ended December 30,

2020 and 2019, there were no such tax benefits associated with the exercise of stock options.

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federal and state tax authorities.

As of September 30, 2020,

As of December 31, 2020,

the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.

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agreement was terminated in March 2020.

At September 30, 2020, the Company had an outstanding payable to the director of $5,585,

At December 31, 2020, the Company had an outstanding payable to the director of $5,585,

which was included in accounts payable in the condensed consolidated balance sheet.

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No amounts were reflected in the

Company’s consolidated financial statements for the six months ended September 30, 2020 and 2019 related to these indemnifications.

Company’s consolidated financial statements for the nine months ended December 31, 2020 and 2019 related to these indemnifications.

The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited

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not made any payments related to these indemnification agreements, and no claims for payment have been made under such agreements.

Management’s Discussion

and Analysis of Financial Condition and Results of Operations

NOTE 9 –

SUBSEQUENT EVENT

February 8, 2021, the Company sold $1,100,000 of convertible promissory notes (the Notes) in a private placement transaction effected

pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended.

The Notes bear interest

at an annual rate of 12%, and interest is accrued or payable monthly in cash.

The Notes mature on September 30, 2021 (the Maturity

Date) and may not be prepaid prior to the Maturity Date.

aggregate principal amount of the Notes plus accrued but unpaid interest thereon shall automatically convert upon the closing

of an offering of the Company’s equity securities to investors or a strategic corporate investor resulting in aggregate

gross proceeds to the Company of at least $5,000,000 (excluding conversion of the Notes or other convertible securities issued

for capital raising purposes) (a Qualified Financing).

In the event of a Qualified Financing, all such outstanding principal and

accrued interest shall convert into the same equity securities purchased by and on the same terms and conditions as the other

investors in such Qualified Financing at a conversion price equal to 80% (a 20% discount) of the lowest price paid per unit or

share by investors in the Qualified Financing.

In the event that additional bridge financing is obtained by the Company, the Notes

shall convert into the same securities and on the same terms and conditions as the other investors therein and all such purchases

will be treated as one, single round of financing going forward.

any time on or following the Maturity Date, the holders of the Notes may demand repayment of the Notes, and the Company shall

repay the outstanding aggregate principal amount plus accrued but unpaid interest thereon.

The holders of the Notes, however,

retain the right for 30 days after the Maturity Date to convert all or part of the aggregate principal amount plus accrued but

unpaid interest on the Notes into the Company’s common stock at the conversion price of $2.87 per share or at a 20% discount

to any financing consummated during the 30-day period following the Maturity Date.

If a Qualified

Financing has not occurred immediately prior to the consummation of a Change of Control (as defined below), the Note holders shall

have the option of either (i) converting all or any portion of the aggregate principal amount of the Notes plus accrued but unpaid

interest thereon into common stock of the Company at a conversion price equal to $2.87 per share or (ii) having the Company repay

the aggregate principal amount of the Notes and accrued but unpaid interest.

The term “Change of Control”

a consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate

reorganization, other than any such consolidation, merger or reorganization in which the shares of capital stock of the Company

immediately prior to such consolidation, merger or reorganization continue to represent a majority of the voting power of the

surviving entity immediately after such consolidation, merger or reorganization;

(ii) any transaction or series of related transactions

to which the Company is a party in which in excess of 50% of the Company’s voting power is transferred;

(iii) the sale or

transfer of all or substantially all of the Company’s assets, or the exclusive license of all or substantially all of the

Company’s material intellectual property;

or (iv) the dissolution and winding up of the Company.

The Company’s

chairman and chief executive officer and an existing investor, which is represented by a member of the Company’s board of

directors, purchased the $1,100,000 aggregate principal amount of the Notes.

The private placement of the Notes was approved by

the Company’s disinterested directors.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with

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we can address the less technically savvy, less motivated part of the market, which we believe is underserved.

We have completed

development of, but have not yet obtained U.S.

Food and Drug Administration, or FDA, clearance for, our insulin pump, and we have

therefore not generated any revenues from product sales.

Our net losses were approximately $3.7 million and $5.3 million for the

six months ended September 30, 2020 and year ended March 31, 2020, respectively.

As of September 30, 2020, we had working capital

of approximately $0.8 million and an accumulated deficit of approximately $12.3 million.

We have substantially

completed development of, but have not yet obtained U.S.

Food and Drug Administration, or FDA, clearance for, our insulin pump,

and we have therefore not generated any revenues from product sales.

Our net losses were approximately $5.6 million and $5.3 million

for the nine months ended December 31, 2020 and year ended March 31, 2020, respectively.

As of December 31, 2020, we had a negative

working capital of approximately $0.2 million and an accumulated deficit of approximately $14.2 million.

Historically,

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to reduce costs.

We have provided additional disclosure in Note 1 to the condensed consolidated financial statements and under Liquidity

and Capital Resources below.

We have provided additional disclosure in Note 1 of the notes to the condensed consolidated financial statements

and under Liquidity and Capital Resources below.

Impacts of COVID-19

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In March 2020,

Santa Diego County in California, where we are based, and the state of California issued “shelter-in-place”

San Diego County in California, where we are based, and the state of California issued “shelter-in-place”

(the Orders).

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spread of COVID-19 has also led to disruption and volatility in the global capital markets.

We were recently able to raise additional

capital in a private placement and received a $368,780 unsecured loan (the PPP Note) under the Paycheck Protection Program (the

PPP), which was established under the U.S.

government’s Coronavirus Aid, Relief, and Economic Security Act (see discussion

below under Liquidity and Capital Resources ).

However, we need to raise additional capital to support our operations

in the future.

We may be unable to access the capital markets or additional capital may only be available to us on terms that

could be significantly detrimental to our existing stockholders and to our business.

We have been able to raise additional

capital in a private placement that commenced in March 2020 and received a $368,780 unsecured loan (the PPP Note) under the Paycheck

Protection Program (the PPP), which was established under the U.S.

government’s Coronavirus Aid, Relief, and Economic Security

Act (see discussion below under Liquidity and Capital Resources ).

However, we need to raise additional capital to

support our operations.

We may be unable to access the capital markets or additional capital may only be available to us on terms

that could be significantly detrimental to our existing stockholders and to our business.

For additional

information on risks that could impact our future results, please refer to “Risk Factors”

in Part II, Item 1A of this

in Part II, Item 1A, of

Accounting Policies and Estimates

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Annual Report on Form 10-K for the year ended March 31, 2020.

As of September 30, 2020, there have been no material changes to

As of December 31, 2020, there have been no material changes to

our significant accounting policies and estimates.

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and Development

September 30,

Research and development –

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Research and development –

Six months ended

Nine months ended

and development expenses include personnel, consulting, tooling and other costs associated with the development of our insulin

1 unchanged sentence

We expense research and development costs as they are incurred.

development, or R&D, expenses increased for the three months ended September 30, 2020 primarily due to increased engineering

development, or R&D, expenses increased for the three months ended December 31, 2020 primarily due to increased engineering

and manufacturing personnel and consulting costs, as we have increased our development and manufacturing activities.

increased for the six months ended September 30, 2020 primarily due to increased engineering and manufacturing personnel and consulting

costs, partially offset by a decrease in stock-based compensation expenses.

Our R&D employee headcount increased to 15 at

September 30, 2020 from four at September 30, 2019.

R&D expenses included non-cash, stock-based compensation expenses

of $101,915 and $70,882 for the three months ended September 30, 2020 and 2019, respectively, and $205,640 and $251,469 for the

six months ended September 30, 2020 and 2019, respectively.

We expect R&D expenses to continue to increase for the remainder

of fiscal 2021, as we continue to advance the development of our pump product and develop an initial low-volume manufacturing

increased for the nine months ended December 31, 2020 primarily due to increased engineering and manufacturing personnel and consulting

Our R&D employee headcount increased to 15 at December 31, 2020 from eight at December 31, 2019.

R&D expenses included

non-cash, stock-based compensation expenses of $96,127 and $66,314 for the three months ended December 31, 2020 and 2019, respectively,

and $301,767 and $317,783 for the nine months ended December 31, 2020 and 2019, respectively.

We expect R&D expenses to decrease

for the remainder of fiscal 2021, as we intend to closely manage our expenses and reduce certain expenditures.

Administrative

September 30,

General and administrative –

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General and administrative –

Six months ended

Nine months ended

administrative expenses consist primarily of personnel and related overhead costs for facilities, marketing, finance, human resources

and general management.

and administrative, or G&A, expenses, increased for the three and six months ended September 30, 2020 primarily as a result

of increased personnel costs, stock-based compensation expenses and facilities costs.

Our G&A headcount increased to four

at September 30, 2020 from two at September 30, 2019.

G&A expenses included stock-based compensation expenses of $198,689

and $85,473 for the three months ended September 30, 2020 and 2019, respectively, and $439,680 and $99,314 for the six months

ended September 30, 2020 and 2019, respectively.

We expect G&A expenses to decrease for the remainder of fiscal 2021.

General and administrative,

or G&A, expenses, increased for the three and nine months ended December 31, 2020 primarily as a result of increased personnel

costs, stock-based compensation expenses and facilities costs, partially offset by reduced consulting and professional services

Our G&A employee headcount increased to four at December 31, 2020 from two at December 31, 2019.

included stock-based compensation expenses of $198,926 and $120,431 for the three months ended December 31, 2020 and 2019, respectively,

and $638,607 and $219,745 for the nine months ended December 31, 2020 and 2019, respectively.

We expect G&A expenses to decrease

for the remainder of fiscal 2021, as we intend to closely manage our expenses and reduce certain expenditures.

Interest Income

September 30,

Interest income –

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Interest income –

Six months ended

Interest income

consists of interest earned on our cash deposits.

The decrease in interest income for fiscal 2021 compared with the same

periods for fiscal 2020 was primarily attributable to a reduction in interest rates in fiscal 2021 combined with lower average

cash balances during fiscal 2021.

Nine months ended

Interest income consists of

interest earned on our cash deposits.

The decrease in interest income for fiscal 2021 compared with the same periods for fiscal

2020 was primarily attributable to a reduction in interest rates in fiscal 2021 combined with lower average cash balances during

and Capital Resources

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G&A expenses associated with our operations.

For the six months ended September 30, 2020, we incurred a net loss of approximately

For the nine months ended December 31, 2020, we incurred a net loss of approximately

$5.6 million.

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$2.5 million, respectively.

At September 30, 2020, we had a cash balance of approximately $1.5 million and an accumulated deficit

At December 31, 2020, we had a cash balance of approximately $0.6 million and an accumulated deficit

of approximately $14.2 million.

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Our ability to continue as a going concern

depends on our ability to raise additional capital through the sale of equity or debt securities to support our future operations,

and we are currently seeking such additional financing.

As discussed in Note 4 to our condensed consolidated financial statements

in Item 1 of this Report, we are currently pursuing additional equity financing through a private placement of our common stock.

depends on our ability to raise additional capital through the sale of equity or debt securities to support our current and future

operations, and we are currently seeking such additional financing.

As discussed in the notes to our condensed consolidated financial

statements in Item 1 of this Report, during 2020, we obtained additional equity financing through a private placement of our common

In addition, we obtained a $368,780 loan (the PPP Note) from Silicon Valley Bank in April 2020 under the U.S.

Small Business Administration

Paycheck Protection Program (the PPP).

The full amount of the PPP Note is due in April 2022, and interest will accrue on the outstanding

principal balance of the PPP Note at a fixed rate of 1.0% per annum, which shall be deferred for the first six months of the term.

Monthly payments will be due and payable beginning in November 2020 and continue each month thereafter until maturity.

applied to have the PPP Note forgiven, as permitted under the terms of the PPP.

No assurance is provided that we will obtain forgiveness

of the PPP Note in whole or in part, but we believe we have used the proceeds in accordance with the PPP to qualify for forgiveness

of the PPP Note.

Small Business

Administration Paycheck Protection Program (the PPP).

The full amount of the PPP Note is due in April 2022, and interest accrues

on the outstanding principal balance of the PPP Note at a fixed rate of 1.0% per annum.

Monthly payments will be due and payable

beginning in September 2021 and continue each month thereafter until maturity.

In October 2020, we applied to have the PPP Note

forgiven, as permitted under the terms of the PPP.

No assurance is provided that we will obtain forgiveness of the PPP Note in

whole or in part, but we believe we have used the proceeds in accordance with the PPP to qualify for forgiveness of the PPP Note.

As disclosed in the notes to the condensed consolidated financial statements in Item 1 of this Report, in February 2021, we issued

$1.1 million aggregate principal amount of convertible promissory notes.

Our operating

needs include the planned costs to operate our business, including amounts required to fund research and development activities,

including clinical studies, working capital and capital expenditures.

Our future capital requirements and the adequacy of our

available funds will depend on many factors, including our ability to successfully commercialize our product, competing technological

and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies

to enhance or complement our product offering.

If we are unable to secure additional capital, we will be required to curtail our

research and development initiatives and take additional measures to reduce costs in order to conserve our cash.

months ended September 30, 2020, we used $3,029,671 in operating activities, which primarily resulted from our net loss of $3,734,886

including those related to our FDA submission and working capital and capital expenditures.

Our future capital requirements and

the adequacy of our available funds will depend on many factors, including our ability to successfully commercialize our product,

competing technological and market developments, and the need to enter into collaborations with other companies or acquire other

companies or technologies to enhance or complement our product offering.

If we are unable to secure additional capital, we will

be required to curtail our research and development initiatives and take additional measures to reduce costs in order to conserve

months ended December 31, 2020, we used $4,570,713 in operating activities, which primarily resulted from our net loss of $5,605,431

and changes to operating assets and liabilities of $107,758, as adjusted for stock-based compensation expenses of $940,374, depreciation

and amortization expenses of $82,016, net changes in lease assets and liabilities of $120,085.

For the six months ended September

For the nine months ended December

31, 2019, we used $2,776,998 in operating activities, which primarily resulted from our net loss of $3,403,281, which was partially

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compensation expenses of $537,528 and depreciation and amortization expenses of $23,840.

For the six months ended September

For the nine months ended December

31, 2020, cash used in investing activities of $109,541 was due to the purchase of property and equipment.

We used $30,600 of cash

to purchase equipment during the six months ended September 30, 2019.

We used $58,278 of

cash to purchase equipment during the nine months ended December 31, 2019.

Cash provided by financing activities

of $1,487,414 for the six months ended September 30, 2020 was attributable to net proceeds of $1,118,634 from the sale of shares

of $2,154,662 for the nine months ended December 31, 2020 was attributable to net proceeds of $1,785,882 from the sale of shares

of our common stock in a private placement that was initiated in March 2020 and $368,780 in proceeds from the PPP Note.

no financing activities during the six months ended September 30, 2019.

no cash flows related to financing activities during the nine months ended December 31, 2019.

Quantitative and Qualitative Disclosures about Market Risk

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements