What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-09 compared with 2022-08-10 · 109 added, 87 removed, 311 unchanged (39% of the section changed)

1 unchanged sentence

BALANCE SHEET

June 30, 2022

September 30, 2022

December 31, 2021

13 unchanged sentences

COMMITMENTS AND CONTINGENCIES (See Note 9)

Series C Convertible Preferred Stock, 34,853 and 34,853 shares outstanding, respectively, redeemable

value of $ 3,485,313 and $ 3,485,313 , respectively

Series C Convertible Preferred Stock, 34,853 and 34,853 shares outstanding,

respectively, redeemable value of $ 3,485,313 and $ 3,485,313 , respectively

SHAREHOLDERS’ EQUITY

13 unchanged sentences

STATEMENTS OF OPERATIONS

THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

September 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021

Three Months Ended

Six Months Ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Nine Months Ended

September 30, 2022

September 30, 2021

September 30, 2022

September 30, 2021

OPERATING EXPENSES

24 unchanged sentences

STATEMENT OF SHAREHOLDERS’ DEFICIT

THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

SIX MONTHS ENDED JUNE 30, 2021

THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

NINE MONTHS ENDED SEPTEMBER 30, 2021

Preferred Stock

Additional Paid-in

Balance at December 31, 2020

10 unchanged sentences

( 5,983,504 )

Balance at June 30 201 (unaudited)

Balance at September 30 2021 (unaudited)

$ 133,894,558

$ ( 130,136,528 )

SIX MONTHS ENDED JUNE 30, 2022

NINE MONTHS ENDED SEPTEMBER 30, 2022

Preferred Stock

Additional Paid-in

Balance at December 31, 2021

3 unchanged sentences

Stock and warrant compensation cost

Common stock returned to the Company by Unregistered dealer

( 10,369,205 )

( 9,086,347 )

Balance at June 30, 2022 (unaudited)

( 9,086,347 )

Balance at September 30, 2022 (unaudited)

$ 171,848,773

$ ( 169,955,872 )

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

STATEMENTS OF CASH FLOWS

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

Six Months Ended

June 30, 2022

June 30, 2021

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

September 30, 2022

September 30, 2021

Nine Months Ended

September 30, 2022

September 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES:

1 unchanged sentence

$ ( 9,086,347 )

Adjustment to reconcile net income(loss) to net cash (used in) provided by operating activities

Adjustment to reconcile net income(loss) to net cash (used in) provided by operating

Depreciation and amortization expense

12 unchanged sentences

( 1,250,049 )

( 1,720,030 )

CASH FLOWS FROM INVESTING ACTIVITIES:

6 unchanged sentences

NET INCREASE IN CASH

( 1,249,049 )

CASH, BEGINNING OF YEAR

6 unchanged sentences

Fair value of convertible notes exchanged for preferred stock

Return and cancellation of common shares

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

TO CONDENSED FINANCIAL STATEMENTS – UNAUDITED

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

Basis of Presentation

5 unchanged sentences

been included.

Operating results for the six months ended June 30, 2022, are not necessarily indicative of the results that may be expected

for the year ending December 31, 2022.

For further information refer to the financial statements and footnotes thereto included in the

Company’s Form 10-K for the December 31, 2021.

Operating results for the nine months ended September 30, 2022, are not necessarily indicative of the results that may

be expected for the year ending December 31, 2022.

For further information refer to the financial statements and footnotes thereto included

in the Company’s Form 10-K for the December 31, 2021.

Concern Substantial Doubt Alleviated

of the six months ended June 30, 2022, the Company had a net loss of $ 6,261,722 .

As of June 30, 2022, its shareholders equity was $ 2,364,780 .

of the nine months ended September 30, 2022, the Company had a net loss of $ 9,086,347 .

As of September 30, 2022, its shareholders equity

was $ 1,963,414 .

believes the Company’s present cash flows will enable it to meet its obligations for twenty-four months from the date of these

20 unchanged sentences

throughout the year, the Company may maintain cash balances in certain bank accounts in excess of FDIC limits.

As of June 30, 2022, the

cash balance in excess of the FDIC limits was $ 5,477,784 .

The Company has not experienced any losses in such accounts and believes it

is not exposed to any significant credit risk in these accounts.

As of September 30, 2022,

the cash balance in excess of the FDIC limits was $ 5,048,352 .

The Company has not experienced any losses in such accounts and believes

it is not exposed to any significant credit risk in these accounts.

preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates

7 unchanged sentences

SCHEDULE OF PROPERTY AND EQUIPMENT

and equipment

expense for the six months ended June 30, 2022 and 2021 was $ 2,161 and $ 2,182 , respectively.

Computer equipment

Machinery and equipment

expense for the nine months ended September 30, 2022 and 2021 was $ 3,188 and $ 3,274 , respectively.

TO CONDENSED FINANCIAL STATEMENTS – UNAUDITED

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Company has patent applications to protect the inventions and processes behind its proprietary bio-based back-sheet, a protective covering

5 unchanged sentences

Intangible assets

expense for the six months ended June 30, 2022 and the year ended December 31, 2021 was $ 1,511 and $ 3,022 , respectively.

expense for the nine months ended September 30, 2022 and the year ended December 31, 2021 was $ 2,266 and $ 3,022 , respectively.

Company measures the cost of employee services received in exchange for an equity award based on the grant-date fair value of the award.

7 unchanged sentences

and directors for services.

On March 24, 2022, the 2,450,000 options expired leaving the September 2, 2015 options of 13,500,000 outstanding.

On March 24, 2022, the 2,450,000 options expired and the September 2, 2015 options of 13,500,000 expired

on September 2, 2022 leaving an outstanding balance of zero for these options.

February 18, 2021, the Company granted 450,000,000 stock options to its employees for services at an exercise price of $ 0.091 .

14 unchanged sentences

options per month for a thirty-six ( 36 ) month period during the term of the optionee’s consultancy with the Company.

As of September

30, 2022, the 5,000,000 stock options were outstanding.

April 12, 2022, the Company granted 450,000,000 stock options to its employees for services at an exercise price of $ 0.021 .

6 unchanged sentences

Options is 100 % vested.

As of September 30, 2022, the 450,000,000 stock options were outstanding.

the appropriate fair value of the stock-based compensation requires the input of subjective assumptions, including the expected life

5 unchanged sentences

(7) years from the date of grant or upon termination of employment.

As of June 30, 2022, the aggregate total of 468,500,000 stock options

were outstanding.

As of September 30, 2022, the aggregate total of 455,000,000 stock

options were outstanding.

and Development

and development costs are expensed as incurred.

Total research and development costs were $ 451,092 and $ 508,440 for the six months ended

June 30, 2022 and 2021, respectively.

Total research and development costs were $ 681,637 and $ 757,014 for the nine months ended

September 30, 2022 and 2021, respectively.

TO CONDENSED FINANCIAL STATEMENTS – UNAUDITED

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings (Loss) per Share Calculations

5 unchanged sentences

of stock options and stock-based awards (Note 4), plus the assumed conversion of convertible debt (Note 5).

the six months ended June 30, 2022, the Company has not included shares issuable from 468,500,000 stock options and 228,958,334 warrants,

because their impact on the income per share is antidilutive.

Company has included shares issuable from convertible debt of $ 107,000 and 440,950,000 stock options for the six months ended June 30,

2021, because their impact on the income per share is dilutive.

the nine months ended September 30, 2022, the Company has not included shares issuable from 455,000,000 stock options and 228,958,334

warrants, because their impact on the income per share is antidilutive.

the nine months ended September 30, 2021, the Company has included shares issuable from convertible debt of $ 107,000 and 465,950,000

stock options, because their impact on the income per share is dilutive.

SCHEDULE OF NET EARNINGS PER SHARE

For the Six Months Ended

For the Nine Months Ended

September 30,

Income (Loss) to common shareholders (Numerator)

5 unchanged sentences

practicable to estimate that value.

As of June 30, 2022, the amounts reported for cash, inventory, prepaid expenses, accounts payable,

As of September 30, 2022, the amounts reported for cash, inventory, prepaid expenses, accounts payable,

and accrued expenses, approximate the fair value because of their short maturities.

12 unchanged sentences

measure certain financial instruments at fair value on a recurring basis.

As of June 30, 2022, there were no financial instruments to

As of September 30, 2022, there were no financial instruments

Issued Accounting Pronouncements

5 unchanged sentences

TO CONDENSED FINANCIAL STATEMENTS – UNAUDITED

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

CAPITAL STOCK

Stock June 30, 2022

of June 30, 2022, the Company had a total of 34,853 shares of Series C Preferred Stock outstanding with a fair value of $ 3,485,313 , and

a stated face value of one hundred dollars ($ 100 ) per share which are convertible into shares of fully paid and non-assessable shares

Stock September 30, 2022

of September 30, 2022, the Company had a total of 34,853 shares of Series C Preferred Stock outstanding with a fair value of $ 3,485,313 ,

and a stated face value of one hundred dollars ($ 100 ) per share which are convertible into shares of fully paid and non-assessable shares

of common stock of the Company.

1 unchanged sentence

of common stock, except upon liquidation, dissolution and winding up of the Corporation.

The stock was presented as mezzanine equity because it is redeemable at a fixed or determinable amount upon an event

that is outside of the issuer’s control.

The holder has the right, at any time, at its

19 unchanged sentences

$ ( 178,736,187 )

$ ( 93,180,986 )

Company recognized a gain on settlement of $ 93,180,986 for the extinguishment of convertible debt, plus derivative liability for the

six months ended June 30, 2021.

Stock June 30, 2022

the six months ended June 30, 2022, the Company issued 5,000,000 common stock purchase warrants for cash in the amount of $ 1,000 .

Stock June 30, 2021

the six months ended June 30, 2021, the Company issued an aggregate of 52,000,000 shares of common stock and separate pre-funded warrants

to purchase up to 31,333,334 shares of common stock, plus warrants to purchase up to 83,333,334 at an exercise price of $ 0.06 per share.

the six months ended June 30, 2021, the Company issued 65,000,000 shares of common stock and separate pre-funded warrants to purchase

nine months ended September 30, 2021.

Stock September 30, 2022

the nine months ended September 30, 2022, the Company issued 5,000,000 common stock purchase warrants for cash in the amount of $ 1,000 .

the nine months ended September 30, 2022, the Company had 10,369,205

shares of common stock returned and cancelled due to the investor being an unregistered dealer.

Stock September 30, 2021

the nine months ended September 30, 2021, the Company issued an aggregate of 52,000,000 shares of common stock and separate pre-funded

warrants to purchase up to 31,333,334 shares of common stock, plus warrants to purchase up to 83,333,334 at an exercise price of $ 0.06

the nine months ended September 30, 2021, the Company issued 65,000,000 shares of common stock and separate pre-funded warrants to purchase

up to 60,000,000 shares of common stock, plus warrants to purchase up to 125,000,000 at an exercise price of $ 0.04 per shares.

the six months ended June 30, 2021, the Company issued 21,964,188 shares of common stock upon conversion of convertible promissory notes

in the amount of $ 184,124 , plus accrued interest of $ 20,851 , and other fees of $1,000 at prices ranging from $ 0.0014 - $ 0.0641 .

the six months ended June 30, 2021, the Company issued 73,273,212 shares of common stock upon conversion of convertible promissory notes

in the amount of $ 587,628 , plus accrued interest of $ 74,006 , and other fees of $ 500 at prices ranging from $ 0.00495 - $ 0.0172 .

the six months ended June 30, 2021, the Company issued 1,000,000 shares of common stock for services at fair value.

the nine months ended September 30, 2021, the Company issued 21,964,188 shares of common stock upon conversion of convertible promissory

notes in the amount of $ 184,124 , plus accrued interest of $ 20,851 , and other fees of $ 1,000 at prices ranging from $ 0.0014 - $ 0.0641 .

the nine months ended September 30, 2021, the Company issued 73,273,212 shares of common stock upon conversion of convertible promissory

notes in the amount of $ 587,628 , plus accrued interest of $ 74,006 , and other fees of $ 500 at prices ranging from $ 0.00495 - $ 0.0172 .

the nine months ended September 30, 2021, the Company issued 1,000,000 shares of common stock for services at fair value.

TO CONDENSED FINANCIAL STATEMENTS – UNAUDITED

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

STOCK (Continued)

Stock June 30, 2021 (Continued)

the six months ended June 30, 2021, the Company issued 28,000,000 shares of common stock upon conversion of 392 shares of preferred stock.

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

CAPITAL STOCK (Continued)

Stock September 30, 2021 (Continued)

the nine months ended September 30, 2021, the Company issued 28,000,000 shares of common stock upon conversion of 392 shares of preferred

STOCK OPTIONS AND WARRANTS

the six months ended June 30, 2022, the Company granted stock options in the amount of 5,000,000 .

the nine months ended September 30, 2022, the Company granted stock options in the amount of 5,000,000 .

(See Note 2).

7 unchanged sentences

Exercisable as of the end of the periods

weighted average remaining contractual life of options outstanding as of June 30, 2022 was as follows:

weighted average remaining contractual life of options outstanding as of September 30, 2022 was as follows:

SCHEDULE OF WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF OPTIONS OUTSTANDING

3 unchanged sentences

Weighted Average Remaining Contractual Life (years)

stock-based compensation expense recognized in the statement of operations during the six months ended June 30, 2022 related to these

options was $ 5,423,031 .

of June 30, 2022, there was no intrinsic value with regards to the outstanding options.

the period ended June 30, 2022, the Company issued 5,000,000 common stock purchase warrants through a securities purchase agreement for

a purchase price of $ 1,000 .

stock-based compensation expense recognized in the statement of operations during the nine months ended September 30, 2022 related to

these options was $ 7,731,188 .

of September 30, 2022, there was no intrinsic value with regards to the outstanding options.

the period ended September 30, 2022, the Company issued 5,000,000 common stock purchase warrants through a securities purchase agreement

for a purchase price of $ 1,000 .

SCHEDULE OF WARRANTS ACTIVITY

4 unchanged sentences

TO CONDENSED FINANCIAL STATEMENTS – UNAUDITED

THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021

OPTIONS AND WARRANTS (Continued)

weighted average remaining contractual life of the warrants outstanding as of June 30, 2022 was as follows:

THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

STOCK OPTIONS AND WARRANTS (Continued)

weighted average remaining contractual life of the warrants outstanding as of September 30, 2022 was as follows:

SCHEDULE OF WARRANTS OUTSTANDING

Warrants Outstanding

Warrants Exercisable

Average Remaining Contractual Life (years)

Exercisable Price

Stock Warrants Outstanding

Stock Warrants Exercisable

Weighted Average Remaining Contractual Life (years)

the period, the Company recognized warrant compensation at fair value in the amount $ 115,102 .

11 unchanged sentences

of $ 5,000 per month for the services provided.

of June 30, 2022, there were no legal proceedings against the Company.

of September 30, 2022, there were no legal proceedings against the Company.

SUBSEQUENT EVENT

has evaluated subsequent events according to the requirements of ASC TOPIC 855 and has reported no subsequent events.

has evaluated subsequent events according to the requirements of ASC TOPIC 855 and has reported the following subsequent event.

October 30, 2022, the Company executed an amendment to the Sponsored Research Agreement with UCLA with an expanded scope of research

work, a new expiration date of December 31, 2025 and increased research funding of $ 2,797,368 .

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