What changed in this filing

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Item 1. Business

2022-03-31 compared with 2021-04-15 · 213 added, 224 removed, 57 unchanged (88% of the section changed)

Recent Developments

On October 17, 2019, we entered an Exclusive License Agreement with

Quoin Pharmaceuticals, Inc., a Delaware corporation (“Quoin”)pursuant to which we granted to Quoin a license to certain

patents for the development of products for commercial sale.

In exchange for the license, Quoin agreed to pay to us a license fee

of $1,000,000 (the “License Fee”) and a single digit royalty interest of all net sales on the licensed products subject

to adjustment in certain situations.

The agreement also requires that Quoin make certain milestone payments to us upon achieving

regulatory approval milestones for certain drug products.

agreement is subject to termination, if among other things, 50% of the license fee is not paid by December 31, 2019 and if the

full License Fee is not paid by March 31, 2020.

No payments were made by Quoin and the agreement was terminated.

Both Parties subsequently

determined that they continue to see the value in a partnership and therefore on May 8, 2020 and again on July 31, 2020 the companies

agreed to extend the Exclusive License Agreement under the same terms to expire on September 30, 2020 ,

and on January 27, 2021 the companies agreed to revise the milestone payments due under the agreement and to extend the agreement

indefinitely.

As of December 31, 2020, we have received $125,000 in licensing fee income per this agreement.

On February 3, 2020, we entered into a License Agreement with Ovation

pursuant to which Skinvisible granted to Ovation Science Inc.

a license for the manufacture and distribution rights

to its hand sanitizer product, DermSafe.

In exchange for the license, Ovation Science Inc.

agreed to pay to Skinvisible a royalty

percentage on all net sales on the licensed products subject to adjustment in certain situations plus a license fee payable in

year 3 of the agreement if it chooses to continue the license.

On June 10, 2020, the agreement was further amended to provide additional

assignment rights for its hand sanitizer products in exchange for $100,000 which was recognized as revenue during the year ended

December 31, 2020.

Company Overview

We, through our wholly owned subsidiary Skinvisible

Pharmaceuticals Inc., are a pharmaceutical research and development (“R&D”) company that has developed and patented

an innovative polymer delivery system, Invisicare®

and formulated over forty topical skin products, which we out-license globally.

We were incorporated in 1998, and target an estimated $80 billion global skincare and dermatology market and a $30 billion global

over-the-counter market as well as other healthcare / medical and consumer goods markets.

With the research and development complete on forty products

and numerous patents issued (technology and product patents), we are ready to monetize our investment.

Our business model will

continue to be to out-license our patented prescription and over-the-counter (“OTC”) products featuring Invisicare

to established manufacturers and marketers of brands internationally and to maximize profits from the products we have already

out-licensed.

The opportunity for us to license our products continues to be a

viable model as the need for pharmaceutical companies to access external R&D companies for new products due to their own down-sizing

or elimination of internal R&D departments.

The demand for our products is enhanced due to the granting of key US and international

patents and the completed development of a number of unique products.

On October 17, 2019, we entered an Exclusive License Agreement with Quoin

Pharmaceuticals, Inc., a Delaware corporation (“Quoin”) pursuant to which we granted to Quoin a license to certain patents

for the development of products for commercial sale.

In exchange for the license, Quoin agreed to pay to us a license fee of $1,000,000

(the “License Fee”) and a single digit royalty interest of all net sales on the licensed products subject to adjustment in

certain situations.

The agreement also requires that Quoin make certain milestone payments to us upon achieving regulatory approval milestones

for certain drug products.

The agreement was subject to termination, if among other things, 50% of

the license fee is not paid by December 31, 2019 and if the full License Fee is not paid by March 31, 2020.

No payments were made by Quoin

and the agreement was terminated.

Both Parties subsequently determined that they continue to see the value in a partnership and therefore

on May 8, 2020 and again on July 31, 2020 the companies agreed to extend the Exclusive License Agreement under the same terms to expire

on December 31, 2020, and on January 27, 2021 the companies agreed to revise the milestone payments due under the agreement and to extend

the agreement indefinitely.

On June 14, 2021, the Company entered into an amendment to change the terms

of the license Fee as shown below.

partial consideration for the rights conveyed by Skinvisible under this Agreement, Licensee agrees to pay to Skinvisible a one-time,

non-refundable, non-creditable license issue fee of one million USD dollars (USO $1,000,000) (''License Fee'').

To date, Licensee has

paid three hundred ninety-two thousand five hundred US dollars (USD $392,500) of this fee as part of the First Half Payment of the License

The balance due of the First Half Payment is one hundred seven thousand five hundred US dollars (USD $107,500) which was received

A further payment of two hundred and fifty thousand dollars ($250,000) is due no later than ten (10) business days after receipt

by Licensee of additional funding from Altium Capital which coincides with the approval from the SEC on Quoin’s merger with a NASDAQ

listed company, which closed in October.

The remaining balance of two hundred and fifty thousand dollars ($250,000) was still outstanding

as of December 31, 2021 .

Additionally,

the milestones in the initial agreement were changed as shown below:

Successful completion of Phase 2 testing:

Successful completion of Phase 3 testing:

Regulatory approval in either 1· the US or EU, whichever happens first:

through our wholly owned subsidiary Skinvisible Pharmaceuticals Inc., are a pharmaceutical research and development (“R&D”)

company that has developed and patented an innovative polymer delivery system, Invisicare® and formulated over forty topical skin

products, which we out-license globally.

We were incorporated in 1998, and target an estimated $80 billion global skincare and dermatology

market and a $30 billion global over-the-counter market as well as other healthcare / medical and consumer goods markets.

the research and development complete on forty products and numerous patents issued (technology and product patents), we are ready to

monetize our investment.

Our business model will continue to be to out-license our patented prescription and over-the-counter (“OTC”)

products featuring Invisicare to established manufacturers and marketers of brands internationally and to maximize profits from the products

we have already out-licensed.

opportunity for us to license our products continues to be a viable model as the need for pharmaceutical companies to access external

R&D companies for new products due to their own down-sizing or elimination of internal R&D departments.

The demand for our products

is enhanced due to the granting of key US and international patents and the completed development of a number of unique products.

Our Flagship Product

Pivotal to our success is our patented polymer delivery system technology

Invisicare is a patented polymer delivery system that enhances the delivery of active ingredients for topically applied

skin care products.

Its patented technology has a unique formula and process for combining active ingredients with a delivery system

that extends the duration of time the product remains on the skin and active.

Invisicare is specifically formulated to carry water insoluble

active and certain cationic active ingredients in water-based products without the use of alcohol, silicones, waxes, or other organic

Products utilizing Invisicare have the proven ability to bond active ingredients to the skin for up to four hours and

They are non-occlusive and allow normal skin respiration and perspiration while moisturizing and protecting against exposure

from a wide variety of environmental irritants.

When topically applied, these formulated products adhere to the

skin's outer layers, forming a protective bond, resisting wash-off, and delivering targeted levels of therapeutic or cosmetic skincare

agents to the skin.

They allow enhanced delivery performance for a variety of skincare agents resulting in improved efficacy, longer

duration of action, reduced irritation and lower dosage of active agent required.

The "invisible"

polymer compositions

wear off as part of the natural exfoliation process of the skin's outer layer cells.

The advantage of products formulated with Invisicare is (1) Invisicare’s

Invisicare is a patented polymer delivery system that enhances the delivery of active ingredients for topically applied skin

care products.

Its patented technology has a unique formula and process for combining active ingredients with a delivery system that extends

the duration of time the product remains on the skin and active.

Invisicare is specifically formulated to carry water insoluble active

and certain cationic active ingredients in water-based products without the use of alcohol, silicones, waxes, or other organic solvents.

Products utilizing Invisicare have the proven ability to bond active ingredients to the skin for up to four hours and longer.

non-occlusive and allow normal skin respiration and perspiration while moisturizing and protecting against exposure from a wide variety

of environmental irritants.

When topically applied, these formulated products adhere to the skin's

outer layers, forming a protective bond, resisting wash-off, and delivering targeted levels of therapeutic or cosmetic skincare agents

They allow enhanced delivery performance for a variety of skincare agents resulting in improved efficacy, longer duration

of action, reduced irritation and lower dosage of active agent required.

The "invisible" polymer compositions wear off as part

of the natural exfoliation process of the skin's outer layer cells.

The advantage of products formulated with Invisicare is (1) Invisicare’s

ability to bind active ingredients (the drug) to the skin, forming a protective bond on the skin, for extended periods of time;

(2) Invisicare can deliver targeted levels (high or low) of therapeutic or cosmetic ingredients to the skin in a controlled release;

(3) Invisicare can help to reduce the irritation of some active ingredients due to how it controls the slower release of that active

and (4) Invisicare science proves that it provides a protective skin barrier which helps retain the natural moisture

content of the skin, while still allowing it to breathe.

These benefits present an excellent opportunity for clear scientific advantages

and marketing messages which resonate with physicians and consumers.

The dermatology market is large, with over 80% of Americans affected

by some kind of skin condition in their lifetime.

The worldwide market for dermatology products including prescription, OTC and

cosmeceuticals is estimated at $80 billion.

(2) Invisicare

can deliver targeted levels (high or low) of therapeutic or cosmetic ingredients to the skin in a controlled release;

(3) Invisicare can

help to reduce the irritation of some active ingredients due to how it controls the slower release of that active ingredient;

Invisicare science proves that it provides a protective skin barrier which helps retain the natural moisture content of the skin, while

still allowing it to breathe.

These benefits present an excellent opportunity for clear scientific advantages and marketing messages which

resonate with physicians and consumers.

The dermatology market is large, with over 80% of Americans affected by

some kind of skin condition in their lifetime.

The worldwide market for dermatology products including prescription, OTC and cosmeceuticals

is estimated at $80 billion.

We formed Skinvisible Pharmaceuticals, Inc.

(“Skinvisible”),

in March 1998 and purchased the exclusive worldwide manufacturing and marketing rights for a polymer delivery system invention

now called Invisicare®

from the inventor for $2 million.

We have continued to develop the Invisicare technology and subsequent

product development resulting in over seven series of Invisicare and over forty unique, patented formulations offering distinctive

benefits that differentiate them significantly from other leading products in the marketplace.

(“Skinvisible”),

in March 1998 and purchased the exclusive worldwide manufacturing and marketing rights for a polymer delivery system invention now called

Invisicare® from the inventor for $2 million.

We have continued to develop the Invisicare technology and subsequent product development

resulting in over seven series of Invisicare and over forty unique, patented formulations offering distinctive benefits that differentiate

them significantly from other leading products in the marketplace.

We have positioned ourselves in the $80 billion worldwide prescription

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We develop topical prescription and over-the-counter

products enhanced with Invisicare to license to pharmaceutical and consumer goods companies around the world for an upfront fee

and ongoing royalties;

products enhanced with Invisicare to license to pharmaceutical and consumer goods companies around the world for an upfront fee and ongoing

CO-DEVELOPMENT :

We assist pharmaceutical clients in the

early development of the most optimal formulation, which they then take forward into clinical testing;

We assist pharmaceutical clients in the early development

of the most optimal formulation, which they then take forward into clinical testing;

LIFE CYCLE MANAGEMENT :

We provide cost-effective solutions

to global pharmaceutical companies by reformulating their products coming off patent with a new Invisicare patent and new product

benefits and line extensions.

Pharmaceutical companies are under a lot of pressure to develop innovative strategies to counteract

the revenue loss from their drugs coming off patent.

We provide cost-effective solutions to global

pharmaceutical companies by reformulating their products coming off patent with a new Invisicare patent and new product benefits and line

Pharmaceutical companies are under a lot of pressure to develop innovative strategies to counteract the revenue loss from

their drugs coming off patent.

Corporate Ownership

We are a publicly traded company under the symbol SKVI, quoted on

the OTC markets since February 1999 and currently trading on the OTCQB in the United States.

We are a publicly traded company under the symbol SKVI, quoted on the OTC

markets since February 1999 and currently trading on the OTCQB in the United States.

We carry on business primarily through our wholly owned subsidiaries:

Skinvisible Pharmaceuticals, Inc.

Pharmaceuticals, Inc.

a Nevada corporation.

We have patents granted in 11 countries, including comprehensive

patents on Invisicare, the foundation of all of our products;

the United States, and internationally in Canada, Europe (4), China,

India, Australia, Hong Kong, and Korea.

We have patents granted in 11 countries, including comprehensive patents

on Invisicare, the foundation of all of our products;

the United States, and internationally in Canada, Europe (4), China, India, Australia,

Hong Kong, and Korea.

The Invisicare patents cover manufacturing, composition and use.

Additionally, we have

been granted product specific patents in the United States for dermal barrier products, sunscreens (photostability of avobenzone),

retinoids (stabilization), cationic products and acne products.

Our value lies in our ability to continually generate new IP on

dermatology and medical products formulated with Invisicare.

Additionally, we have been granted product specific

patents in the United States for dermal barrier products, sunscreens (photostability of avobenzone), retinoids (stabilization), cationic

products and acne products.

Our value lies in our ability to continually generate new IP on dermatology

and medical products formulated with Invisicare.

Patent approvals are sought (initially in the United States.

internationally) for all products developed.

and later internationally)

for all products developed.

All patents with Invisicare are owned by us.

When developing new products using Invisicare, we file for both

patent and trademark protection.

When developing new products using Invisicare, we file for both patent

and trademark protection.

We have been granted trademarks in the U.S.

and Canada for the following names:

- Skinvisible®

w Invisicare®

w JUSTCARE®

w Kintari®

w Skinbrella®

- Skinvisible® w Invisicare® w JUSTCARE® w Kintari® w Skinbrella®

Revenue generation :

5 unchanged sentences

Licensees purchase Invisicare polymers from us.

The polymers make

up 6-8% of each final product formulation for OTC and cosmetic formulas and less for prescription formulas.

The polymers make up 6-8%

of each final product formulation for OTC and cosmetic formulas and less for prescription formulas.

Strategic Growth Opportunities

5 unchanged sentences

Private Label Products

Our sunscreen is a broad spectrum SPF 30 known as Skinbrella®.

We completed independent testing to validate our broad spectrum sunscreen claims according to the labeling guidelines of the FDA,

which are designed to help reduce the incidents of skin cancer in the U.S.

Our sunscreen is a broad spectrum SPF 30 known as Skinbrella®.

independent testing to validate our broad spectrum sunscreen claims according to the labeling guidelines of the FDA, which are designed

to help reduce the incidents of skin cancer in the U.S.

Our claims are as follows:

Claim # 1 –

Broad-Spectrum:

According to the FDA, in order

for a sunscreen to be labeled “broad spectrum”

it must prove it protects against both UVA and UVB rays by having an

SPF (Sun Protection Factor) of at least 15 and a critical wave length of at least 370 nm.

Our sunscreen has surpassed both of these

criteria, allowing our broad spectrum sunscreen label to also state “prevents sunburn, skin cancer and aging due to the sun.”

Claim # 2 –

Water-Resistant 80 Minutes:

The FDA sunscreen

water resistant claim requires that a sunscreen must have the same SPF after being in water or sweating for 40 or 80 minutes.

testing was conducted at an independent laboratory specializing in sunscreen testing.

The test involved human subjects that applied

sunscreen to their arm, followed by the immersion of the arm into a Jacuzzi for 80 minutes (10 minutes in / 10 minutes out).

sunscreen successfully completed this testing and is allowed to use “Water-resistant for 80 Minutes”

on its sunscreen

label, the longest length of time allowed by the FDA.

Claim # 3 –

Unique Patented Technology / Eight-Hour Photostability:

As previously announced, we were granted a patent from the United States Patent and Trademark Office entitled “Sunscreen

Composition with Enhanced UVA Absorber Stability and Methods”, which provides protection until November 2029.

successfully formulated a unique Invisicare®

delivery system specifically for stabilizing avobenzone;

the key sunscreen used

Data submitted to the US patent office proved that our sunscreen provides a minimum of eight hours of photostability.

Claim # 1 – Broad-Spectrum:

According to the FDA, in order for a

sunscreen to be labeled “broad spectrum” it must prove it protects against both UVA and UVB rays by having an SPF (Sun Protection

Factor) of at least 15 and a critical wave length of at least 370 nm.

Our sunscreen has surpassed both of these criteria, allowing our

broad spectrum sunscreen label to also state “prevents sunburn, skin cancer and aging due to the sun.”

Claim # 2 – Water-Resistant 80 Minutes:

The FDA sunscreen water

resistant claim requires that a sunscreen must have the same SPF after being in water or sweating for 40 or 80 minutes.

Our testing was

conducted at an independent laboratory specializing in sunscreen testing.

The test involved human subjects that applied sunscreen to their

arm, followed by the immersion of the arm into a Jacuzzi for 80 minutes (10 minutes in / 10 minutes out).

Our sunscreen successfully completed

this testing and is allowed to use “Water-resistant for 80 Minutes” on its sunscreen label, the longest length of time allowed

Claim # 3 – Unique Patented Technology / Eight-Hour Photostability:

As previously announced, we were granted a patent from the United States Patent and Trademark Office entitled “Sunscreen Composition

with Enhanced UVA Absorber Stability and Methods”, which provides protection until November 2029.

Skinvisible successfully formulated

a unique Invisicare® delivery system specifically for stabilizing avobenzone;

the key sunscreen used in the USA.

Data submitted to

the US patent office proved that our sunscreen provides a minimum of eight hours of photostability.

Additional Skinvisible Products

Sunless Tanning Products

We have developed a sunless tanning mousse / foam which uses a unique

foam with Invisicare®, developed specifically for its foaming properties.

This adds to Skinvisible’s line of sunless

tanning products which includes sunless tanning lotions (light, medium and dark), pre-sun moisturizer and after-sun moisturizer

along with sunless tanning spray products for commercial use.

We have developed a sunless tanning mousse / foam which uses a unique foam

with Invisicare®, developed specifically for its foaming properties.

This adds to Skinvisible’s line of sunless tanning products

which includes sunless tanning lotions (light, medium and dark), pre-sun moisturizer and after-sun moisturizer along with sunless tanning

spray products for commercial use.

The addition of a sunless tanning mousse enhances this line of products.

Sunscreen Products

We have developed 3 broad spectrum sunscreens, with SPF 15, 30 and

50 (the highest SPF allowed by the FDA).

We have developed 3 broad spectrum sunscreens, with SPF 15, 30 and 50 (the

highest SPF allowed by the FDA).

All are formulated with Avobenzone, the only UVA sun filter allowed under the US FDA monograph.

This UVA/UVB sunscreen was granted a patent from the United States patent office in 2013.

Avobenzone is known for breaking down

in the sun after only two hours –

thus the requirement to reapply every 2 hours.

Skinvisible’s patent was granted based

on Invisicare's®

UVA/UVB sunscreen was granted a patent from the United States patent office in 2013.

Avobenzone is known for breaking down in the sun

after only two hours – thus the requirement to reapply every 2 hours.

Skinvisible’s patent was granted based on Invisicare's®

minimum 8 hour photo stability.

For countries outside the United States, Skinvisible has additionally patented

UVA/UVB sunscreens formulated with Tinosorb S.

For countries outside the United States, Skinvisible has additionally patented UVA/UVB sunscreens formulated

with Tinosorb S.

Capitalize On Current Licensees:

We continue to work diligently with our licensees to ensure they

have a smooth manufacturing process, ongoing R&D support and marketing feedback.

We continue to work diligently with our licensees to ensure they have a

smooth manufacturing process, ongoing R&D support and marketing feedback.

Ovation Science Inc.

On February 3, 2020, we entered into a License

Agreement with Ovation Science Inc.

On February 3, 2020, we entered into a License Agreement

with Ovation Science Inc.

pursuant to which Skinvisible granted to Ovation Science Inc.

a license for the manufacture

and distribution rights to its hand sanitizer product, DermSafe.

a license for the manufacture and distribution

rights to its hand sanitizer product, DermSafe.

In exchange for the license, Ovation Science Inc.

agreed to pay

to Skinvisible a single digit royalty interest on all net sales on the licensed products subject to adjustment in certain situations plus

agreed to pay to Skinvisible a single

digit royalty interest on all net sales on the licensed products subject to adjustment in certain situations plus

a license fee payable in year 3 of the agreement if it chooses to continue the license.

Women’s Choice Pharmaceuticals

ProCort®, long lasting prescription hemorrhoid cream

launched in the United States August 2011.

Women’s Choice Pharmaceuticals

ProCort®, long lasting prescription hemorrhoid cream launched

in the United States August 2011.

Sales and Royalties:

Skinvisible receives a royalty based on net

sales of ProCort.

Women’s Choice has been successfully growing their sales of ProCort®

Increasing The Value of Skinvisible’s Pipeline:

We have a pipeline of over forty products which are available for

Testing is conducted in-house generating proof of concept including release of the active ingredient as well as long

term shelf life (stability).

Additional studies conducted on specific products including skin sensitivity, toxicity and product

efficacy are outsourced to FDA compliant laboratories.

Skinvisible receives a royalty based on net sales

Women’s Choice has been successfully growing their sales of ProCort®

Increasing The Value of Skinvisible’s Pipeline:

We have a pipeline of over forty products which are available for licensing.

Testing is conducted in-house generating proof of concept including release of the active ingredient as well as long term shelf life (stability).

Additional studies conducted on specific products including skin sensitivity, toxicity and product efficacy are outsourced to FDA compliant

laboratories.

These studies are critical in attracting potential licensees.

strategy is to find a partner for our prescription product portfolio.

This would allow for a partner to seek FDA approval using

the 505b2 pathway for one or more of our products.

Market research indicates there is reasonably limited direct

competition for Invisicare and patented products in terms of performance capabilities for topically administered skin products.

Many companies are seeking unique delivery systems to enhance their portfolio and purchasing companies that have delivery technology.

Our clinical strategy is to find a partner for our prescription

product portfolio.

This would allow for a partner to seek FDA approval using the 505b2 pathway for one or more of our products.

Market research indicates there is reasonably limited direct competition

for Invisicare and patented products in terms of performance capabilities for topically administered skin products.

Many companies are

seeking unique delivery systems to enhance their portfolio and purchasing companies that have delivery technology.

Government Regulation

Cosmetic and Skin Care Regulation

Depending upon product claims and formulation, skin care products

may be regulated as cosmetics, drugs, devices, or combination cosmetics and drugs.

The FDA has authority to regulate cosmetics

marketed in the United States under the FDCA and the Fair Packaging and Labeling Act (“FPLA”) and implementing regulations.

The Federal Trade Commission (the “FTC”) regulates the advertising of cosmetics under the FTCA.

Depending upon product claims and formulation, skin care products may be

regulated as cosmetics, drugs, devices, or combination cosmetics and drugs.

The FDA has authority to regulate cosmetics marketed in the

United States under the FDCA and the Fair Packaging and Labeling Act (“FPLA”) and implementing regulations.

The Federal Trade

Commission (the “FTC”) regulates the advertising of cosmetics under the FTCA.

The FDCA prohibits the marketing of adulterated and misbranded cosmetics.

Cosmetic ingredients must also comply with the FDA’s ingredient, quality, and labeling requirements and the FTC’s requirements

pertaining to truthful and non-misleading advertising.

Cosmetic products and ingredients, with the exception of color additives,

are not required to have FDA premarket approval.

Manufacturers of cosmetics are also not required to register their establishments,

file data on ingredients, or report cosmetic-related injuries to the FDA.

We will be responsible for substantiating the safety and product

claims of the cosmetic products and ingredients before marketing.

The FDA or FTC may disagree with our characterization of one

or more of the skin care products as a cosmetic or the product claims.

This could result in a variety of enforcement actions which

could require the reformulation or relabeling of our products, the submission of information in support of the product claims or

the safety and effectiveness of our products, or more punitive action, all of which could have a material adverse effect on our

If the FDA determines we have failed to comply with applicable requirements under the FDCA or FPLA, it can impose a variety

of enforcement actions from public warning letters, injunctions, consent decrees, and civil penalties to seizure of our products,

total or partial shutdown of our production, and criminal prosecutions.

If any of these events were to occur, it could materially

adversely affect us.

If the FTC determines we have failed to substantiate our claims, it can pursue a variety of actions including

disgorgement of profits, injunction from further violative conduct, and consent decrees.

Cosmetic products and ingredients, with the exception of color additives, are not

required to have FDA premarket approval.

Manufacturers of cosmetics are also not required to register their establishments, file data

on ingredients, or report cosmetic-related injuries to the FDA.

We will be responsible for substantiating the safety and product claims

of the cosmetic products and ingredients before marketing.

The FDA or FTC may disagree with our characterization of one or more of the

skin care products as a cosmetic or the product claims.

This could result in a variety of enforcement actions which could require the

reformulation or relabeling of our products, the submission of information in support of the product claims or the safety and effectiveness

of our products, or more punitive action, all of which could have a material adverse effect on our business.

If the FDA determines we

have failed to comply with applicable requirements under the FDCA or FPLA, it can impose a variety of enforcement actions from public

warning letters, injunctions, consent decrees, and civil penalties to seizure of our products, total or partial shutdown of our production,

and criminal prosecutions.

If any of these events were to occur, it could materially adversely affect us.

If the FTC determines we have

failed to substantiate our claims, it can pursue a variety of actions including disgorgement of profits, injunction from further violative

conduct, and consent decrees.

Domestic State and Local Government Regulation

Some states and local governments in the United States regulate

the labeling, operation, sale, and distribution of our skin care products.

To the extent additional state or local laws apply,

we intend to comply with them.

Some states and local governments in the United States regulate the labeling,

operation, sale, and distribution of our skin care products.

To the extent additional state or local laws apply, we intend to comply with

Foreign Government Regulation

In general, we will need to comply with the government regulations

of each individual country in which our products are to be distributed and sold.

These regulations vary in complexity and can be

as stringent, and on occasion even more stringent, than FDA regulations in the United States.

The level of complexity and stringency

is not always precisely understood today for each country, creating greater uncertainty for the international regulatory process.

Furthermore, government regulations can change with little to no notice and may result in up-regulation of our product(s), thereby

creating a greater regulatory burden for us.

We have not yet thoroughly explored the applicable laws and regulations that we will

need to comply with in foreign jurisdictions.

As a result it is possible that we may not be permitted to sell our products in foreign

markets or expand our business into one or more foreign jurisdictions.

In general, we will need to comply with the government regulations of each

individual country in which our products are to be distributed and sold.

These regulations vary in complexity and can be as stringent,

and on occasion even more stringent, than FDA regulations in the United States.

The level of complexity and stringency is not always precisely

understood today for each country, creating greater uncertainty for the international regulatory process.

Furthermore, government regulations

can change with little to no notice and may result in up-regulation of our product(s), thereby creating a greater regulatory burden for

We have not yet thoroughly explored the applicable laws and regulations that we will need to comply with in foreign jurisdictions.

As a result it is possible that we may not be permitted to sell our products in foreign markets or expand our business into one or more

foreign jurisdictions.

Environmental Laws

We are not subject to any significant or material environmental

regulation in the normal operation of our business.

We are not subject to any significant or material environmental regulation

in the normal operation of our business.

Currently, we have two employees, including our CEO Terry Howlett.

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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-K

Item 1. Business