10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 000-30156

RENOVACARE, INC.

(Exact name of registrant as specified in its charter)

Nevada	98-0384030
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

9375 E. Shea Blvd., Suite 107-A Scottsdale, AZ 85260
	(Address of principal executive offices)

888-398-0202

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	(Do not check if a smaller reporting company)
Smaller reporting company	☒	Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in 12b-2 of the Exchange Act): Yes ☐ No ☒

As of November 10, 2021, the registrant had 87,352,364 shares of its common stock, par value $0.00001 per share, issued and outstanding.

RENOVACARE, INC.

FORM 10-Q

For The Quarter Ended September 30, 2021

TABLE OF CONTENTS

		Page #
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets		1
	Consolidated Statements of Operations		2
	Consolidated Statements of Stockholders’ Equity		3
	Consolidated Statements of Cash Flows		4
	Notes to Consolidated Financial Statements		5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		18
Item 4.	Controls and Procedures		18
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings		19
Item 1A.	Risk Factors		19
Item 6.	Exhibits		20
Signatures			21

PART I

Item 1. Financial Statements

RENOVACARE, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2021			2020
ASSETS		(Unaudited)
Current assets
Cash	$	3,421,765		$	7,412,969
Prepaid expenses		464,315			566,275
Total current assets		3,886,080			7,979,244
Equipment, net of accumulated depreciation of $10,630 and $3,584, respectively		31,594			38,640
Intangible assets		152,854			152,854
Security Deposit		7,995			7,995
Right of Use Asset		41,171			79,462
Other Assets		72,497			137,749
Total assets	$	4,192,191		$	8,395,944
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	670,125		$	1,237,437
Lease liability - current		43,192			51,125
Total current liabilities		713,317			1,288,562
Lease Liability - long term		-			28,607
Total liabilities		713,317			1,317,169
Commitments and contingencies		-			-
Stockholders' equity
Preferred stock: $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock: $0.00001 par value; 500,000,000 shares authorized, 87,352,364 shares issued and outstanding at September 30, 2021 and December 31, 2020		874			874
Additional paid-in capital		36,373,669			36,846,082
Retained deficit		(32,895,669	)		(29,768,181	)
Total stockholders' equity		3,478,874			7,078,775
Total liabilities and stockholders' equity	$	4,192,191		$	8,395,944

(See accompanying notes to unaudited consolidated financial statements)

1

RENOVACARE, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Revenue	$	-		$	-		$	-		$	-
Operating expenses
Research and development		744,625			1,551,989			2,503,487			3,091,383
General and administrative		955,899			1,290,890			819,665			4,024,317
Total operating expenses, net		1,700,524			2,842,879			3,323,152			7,115,700
Loss from operations		(1,700,524	)		(2,842,879	)		(3,323,152	)		(7,115,700	)
Other income
Interest income		2,239			24,915			4,861			111,390
Other income		-			-			190,803			-
Total other income		2,239			24,915			195,664			111,390
Net loss	$	(1,698,285	)	$	(2,817,964	)	$	(3,127,488	)	$	(7,004,310	)
Basic and Diluted Loss per Common Share	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.08	)
Weighted average number of common shares outstanding - basic and diluted		87,352,364			87,352,364			87,352,364			87,352,364

(See accompanying notes to unaudited consolidated financial statements)

2

RENOVACARE, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

					Additional						Total
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021	Common Stock				Paid-in			Retained			Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balance, December 31, 2020	87,352,364	$	874	$	36,846,082		$	(29,768,181	)	$	7,078,775
Stock based compensation due to common stock purchase options	-		-		352,063			-			352,063
Reversal of stock based compensation due to common stock purchase option cancellations	-		-		(1,248,575	)		-			(1,248,575	)
Net loss for the three months ended March 31, 2021	-		-		-			(517,242	)		(517,242	)
Balance, March 31, 2021	87,352,364		874		35,949,570			(30,285,423	)		5,665,021
Stock based compensation due to common stock purchase options	-		-		243,979			-			243,979
Reversal of stock based compensation due to common stock purchase option cancellations	-		-		(66,130	)		-			(66,130	)
Net loss for the three months ended June 30, 2021	-		-		-			(911,961	)		(911,961	)
Balance, June 30, 2021	87,352,364		874		36,127,419			(31,197,384	)		4,930,909
Stock based compensation due to common stock purchase options	-		-		246,250			-			246,250
Net loss for the three months ended September 30, 2021	-		-		-			(1,698,285	)		(1,698,285	)
Balance, September 30, 2021	87,352,364	$	874	$	36,373,669		$	(32,895,669	)	$	3,478,874
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020
Balance, December 31, 2019	87,352,364	$	874	$	32,378,833		$	(20,219,845	)	$	12,159,862
Stock based compensation due to common stock purchase options	-		-		465,763			-			465,763
Net loss for the three months ended March 31, 2020	-		-		-			(1,174,753	)		(1,174,753	)
Balance, March 31, 2020	87,352,364		874		32,844,596			(21,394,598	)		11,450,872
Stock based compensation due to common stock purchase options	-		-		1,586,522			-			1,586,522
Net loss for the three months ended June 30, 2020	-		-		-			(3,011,593	)		(3,011,593	)
Balance, June 30, 2020	87,352,364		874		34,431,118			(24,406,191	)		10,025,801
Stock based compensation due to common stock purchase options	-		-		1,119,815			-			1,119,815
Stock based compensation issued for prepaid services	-		-		260,997			-			260,997
Net loss for the three months ended September 30, 2020	-		-		-			(2,817,964	)		(2,817,964	)
Balance, September 30, 2020	87,352,364	$	874	$	35,811,930		$	(27,224,155	)	$	8,588,649

(See accompanying notes to unaudited consolidated financial statements)

3

RENOVACARE, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended
	September 30,
	2021		2020
Cash flows used in operating activities
Net loss	(3,127,488	)	(7,004,310	)
Adjustments to reconcile net loss to net cash flows used in operating activities
Depreciation expense	7,046		309
Stock based compensation expense	(407,163	)	3,172,100
Amortization of right of use asset	38,291		6,978
Changes in operating assets and liabilities:
(Increase) decrease in prepaid expenses and other assets	101,960		(69,608	)
Increase (decrease) in accounts payable	(567,312	)	416,045
Increase (decrease) in accounts payable - related parties	-		20,675
Increase (decrease) in lease liability	(36,538	)	(6,874	)
Net cash flows used in operating activities	(3,991,204	)	(3,464,685	)
Cash flows from investing activity
Decrease (increase) in security deposit	-		(7,995	)
Purchase of fixed assets	-		(41,273	)
Net cash flows from investing activity	-		(49,268	)
Decrease in cash	(3,991,204	)	(3,513,953	)
Cash at beginning of period	7,412,969		12,185,248
Cash at end of period	3,421,765		8,671,295
Supplemental disclosure of non cash financing activities
Stock based compensation issued for prepaid services	-		260,997

(See accompanying notes to unaudited consolidated financial statements)

4

RENOVACARE, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of RenovaCare, Inc. and Subsidiary (“RenovaCare” or the “Company”) as of September 30, 2021, and for the three and nine months ended September 30, 2021 and 2020 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for  quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 31, 2020 included in our Annual Report on Form 10-K filed with the SEC on March 31, 2021.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Actual results may differ from those estimates. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments (including normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial position as of September 30, 2021, results of operations and stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.

Organization

RenovaCare, Inc., formerly Janus Resources, is a Nevada corporation. RenovaCare, Inc. was incorporated under the laws of the State of Utah on July 14, 1983 as Far West Gold, Inc..

The Company has an authorized capital of 500,000,000 shares of $0.00001 par value common stock, of which 87,352,364 shares are outstanding as of September 30, 2021, and 10,000,000 shares of $0.0001 par value preferred stock, of which none are outstanding.

RenovaCare, Inc., through its wholly owned subsidiary, RenovaCare Sciences Corp. is a development-stage company focusing on the research, development and commercialization of autologous (using a patient’s own cells) cellular therapies that can be used for medical and aesthetic applications.

On July 12, 2013, the Company completed the acquisition of its flagship technologies (collectively, the “CellMist^TM System”). The CellMist™ System is a cell isolation procedure that enzymatically renders stem cells from the patient’s own skin or other tissues. The resulting stem cell suspension is administered topically from the Company’s novel solution sprayer device (the “SkinGun^TM”) as a cell therapy onto wounds including burns to facilitate healing.

Currently, our proprietary technologies are the subject of and 43 U.S. and international patents or patent applications and 14 U.S. and international trademarks. Of the issued patents, five are U.S. patents and twelve have issued or are allowed in Australia, Canada, Europe, Germany, France, Italy, Japan, Korea, Netherlands, Spain, Switzerland/Lichenstein, and United Kingdom.

On May 6, 2021 the Food and Drug Administration gave full-approval of the Company’s Investigational Device Exemption (IDE) application to proceed with initial clinical testing of the CellMist™ System and SkinGun™ spray device in adult burn patients.

5

Improvements in the design and efficiency of the CellMist™ System including a closed, automated cell isolation device and the SkinGun™ spray device are in development with StemCell Systems (Berlin, Germany), the Company’s R&D innovation partner. The Company is adapting its core technologies for possible use in other clinical indications. The Company is also developing the cell isolation and spray gun devices as stand-alone 510(k)-cleared products for isolation of cells from other tissues and spraying other solutions of medical importance.

The Company's activities have consisted principally of performing research and development activities and raising capital to support such activities. The Company has enlisted the assistance of several Contract Manufacturing Organizations (CMO) to manufacture clinical supplies including components of the CellMist System™ and the electronic SkinGun™ spray devices in compliance with FDA’s guidance for current Good Manufacturing Practices (cGMP) and Contract Research Organizations (CRO) to test and validate the Company’s products and processes and to conduct clinical trials that evaluate initially the safety and feasibility of an autologous skin cell therapy using the Company’s products to facilitate burn wound healing. These development activities are subject to significant risks and uncertainties, including possible failure of preclinical and clinical testing. The Company has not generated any revenue and has sustained recurring losses and negative cash flows from operations since inception. The Company expects to incur losses as it continues development of its products and technologies and expects that it will need to raise additional capital through partnerships or the sale of its securities to accomplish its business plan. Failing to secure such additional funding before achieving sustainable revenue and profit from operations poses a significant risk. The Company's ability to fund the development of its cellular therapies depends on the amount and timing of cash receipts from future financing activities. There can be no assurance as to the availability or terms upon which such financing and capital might be available.

Liquidity and Going Concern

The Company has prepared its consolidated financial statements on a “going concern” basis, which presumes that it will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Since Inception, the Company has incurred net operating losses and operating cash flow deficits. The Company does not currently generate revenues and will continue to incur losses from operations and operating cash flow deficits in the future. The Company's activities are subject to significant risks and uncertainties due to the stage of the development of the Company's cellular therapies.

At September 30, 2021, the Company had approximately $3,400,000 in cash on hand. The Company estimates cash will be depleted in less than one year from the date that these financial statements are available to be issued, if the Company does not generate sufficient cash to support operations.

The future of the Company will depend on its ability to successfully raise capital from external sources to fund operations. If the Company is unable to obtain adequate funds, or if such funds are not available to it on acceptable terms, the Company's ability to continue its business to develop its cellular therapies will be significantly impaired and it may cause the Company to curtail operations.

The matters described above raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these condensed consolidated financial statements were issued.

Recent Accounting Standards

Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative non-governmental US GAAP as found in the Financial Accounting Standards Board's Accounting Standards Codification.

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable, the Company has not identified any standards that the Company believes merit further discussion other than as discussed above. The Company believes that none of the new standards will have a significant impact on the financial statements.

6

Earnings (Loss) Per Share

The Company presents both basic and diluted earnings per share ("EPS"). Basic EPS is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period presented. Diluted EPS amounts are based upon the weighted average number of common and common equivalent shares outstanding during the period presented. The Company has not included the effects of warrants or stock options on net loss per share because to do so would be antidilutive.

Following is the computation of basic and diluted net loss per share for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Basic and Diluted EPS Computation
Numerator:
Loss available to common stockholders'	$	(1,698,285	)	$	(2,817,964	)	$	(3,127,488	)	$	(7,004,310	)
Denominator:
Weighted average number of common shares outstanding		87,352,364			87,352,364			87,352,364			87,352,364
Basic and diluted EPS	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.08	)
The shares listed below were not included in the computation of diluted losses
per share because to do so would have been antidilutive for the periods presented:
Stock options		3,139,999			5,845,570			3,139,999			5,845,570
Warrants		11,712,496			12,296,912			11,712,496			12,296,912
Total shares not included in the computation of diluted losses per share		14,852,495			18,142,482			14,852,495			18,142,482

Note 2. Prepaid Expenses

Prepaid expenses consist of the following:

	September 30,		December 31,
	2021		2020
Prepaid insurance	$	-	$	54,180
Prepaid stock options for services		87,001		86,999
Prepaid professional fees		65,000		65,000
Prepaid research and development expense		296,196		289,746
Other prepaid costs		16,118		70,350
Total prepaid expenses	$	464,315	$	566,275

Note 3. Equity

2013 Long-Term Incentive Plan

On June 20, 2013, the Company’s Board of Directors (the “Board”) adopted the 2013 Long-Term Incentive Plan (the “2013 Plan”) and on November 15, 2013, a stockholder owning a majority of the Company’s issued and outstanding stock approved adoption to the 2013 Plan. Pursuant to the terms of the 2013 Plan, an aggregate of 20,000,000 shares of the Company’s common stock have been reserved for issuance to the Company’s officers, directors, employees and consultants in order to attract and hire key technical personnel and management. Options granted to employees under the 2013 Plan, including directors and officers who are employees, may be incentive stock options or non-qualified stock options; options granted to others under the 2013 Plan are limited to non-qualified stock options. As of September 30, 2021, there were 16,618,266 shares available for future grants.

7

The 2013 Plan is administered by the Board or a committee designated by the Board. Subject to the provisions of the 2013 Plan, the Board has the authority to determine the officers, employees and consultants to whom options will be granted, the number of shares covered by each option, vesting rights and the terms and conditions of each option that is granted to them; however, no person may be granted options to purchase more than 2,000,000 shares in any one fiscal year under the 2013 Plan, and the aggregate fair market value (determined at the time the option is granted) of the shares with respect to which incentive stock options are exercisable for the first time by an optionee during any calendar year cannot exceed $100,000. Options granted pursuant to the 2013 Plan are exercisable no later than ten years after the date of grant.

The exercise price per share of common stock for options granted under the 2013 Plan is the fair market value of the Company's common stock on the date of grant, using the closing price of the Company's common stock on the last trading day prior to the date of grant, except for incentive stock options granted to a holder of ten percent or more of the Company's common stock, for whom the exercise price per share will not be less than 110% of the fair market value. No option can be granted under the 2013 Plan after June 20, 2023.

Common Stock

At September 30, 2021, the Company had 500,000,000 authorized shares of common stock with a par value of $0.00001 per share and 87,352,364 shares of common stock outstanding.

During the three and nine months ended September 30, 2021 and 2020, the Company did not have any common stock transactions.

Warrants

The Company has issued warrants to purchase common stock at various exercise prices in connection with loan agreements and private placements. The following table summarizes information about warrants outstanding at September 30, 2021 and December 31, 2020:

	Shares of Common Stock Issuable from Warrants Outstanding as of			Weighted
	September 30,	December 31,		Average
Description	2021	2020		Exercise Price	Expiration
Series E	-	584,416	$	1.54	September 9, 2021
Series F	7,246	7,246	$	3.45	February 23, 2022 & March 9, 2022
Series G	460,250	460,250	$	2.68	July 21, 2022
Series H	910,000	910,000	$	2.75	October 16, 2022
Series I	10,335,000	10,335,000	$	2.00	November 26, 2025
Total	11,712,496	12,296,912

During the three months ended September 30, 2021, all the Series E Warrants expired unexercised.

8

Stock Options

The following table summarizes stock option activity for the six months ended September 30, 2021:

	Number of Options			Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($)
Outstanding at December 31, 2020		5,895,570			2.45		5.14		1,650
Granted		50,000			1.72		9.82		-
Forfeited		(2,805,571	)		2.74
Outstanding at September 30, 2021		3,139,999			2.17		4.79		1,650
Vested and exercisable at September 30, 2021		2,564,999			1.95		4.73		1,650

The valuation methodology used to determine the fair value of stock options is the Black-Scholes Model. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the risk-free interest rate, and the expected term of the stock options. The ranges of assumptions used in the Black-Scholes Model during the nine months ended September 30, 2021 and 2020 is set forth in the table below:

	Nine Months Ended September 30,
	2021			2020
Risk-free interest rate		0.73	%		0.021%	–	1.67%
Expected term in years		5.38			3.25	–	6.00
Weighted Avg. Expected Volatility		102.07			103.56%	–	110.71%
Expected dividend yield		0	%			0%

The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the expected term. Estimated volatility is a measure of the amount by which the stock price is expected to fluctuate each year during the term of an award. Our calculation of estimated volatility is based on historical stock prices over a period equal to the term of the awards. The average expected life is based on the contractual terms of the stock option using the simplified method. We utilize a dividend yield of zero based on the fact that we have never paid cash dividends and have no current intention to pay cash dividends. Future stock-based compensation may significantly differ based on changes in the fair value of our Common Stock and our estimates of expected volatility and the other relevant assumptions.

The following table sets forth the share-based compensation cost resulting from stock option grants, including those previously granted and vesting over time, that were recorded in the Company’s Statements of Operations for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021			2020
Research and development	$	224,000	$	455,271	$	731,438		$	1,087,147
General and administrative		44,000		664,544		(1,138,601	)		2,084,953
Total	$	268,000	$	1,119,815	$	(407,163	)	$	3,172,100

Nine Months Ended September 30, 2021

On July 26, 2021, in connection with an Executive Services Consulting Agreement of the same date, the Company granted Justin Frere, the Company’s Chief Financial Officer, an option to purchase up to 50,000 shares of the Company’s common stock at an exercise price of $1.72 and with a term of 10 years.

9

During the first half of 2021, certain individuals resigned from the Company resulting in the forfeiture and cancellation of 2,805,571 options. Compensation expense was recorded on some of these options prior to their full vesting. As a result, during the nine months ended September 30, 2021, the Company recognized $1,314,705 of reversals of the prior recognized compensation expense related to the cancelled options. During the three and nine months ended September 30, 2021, the expense recognized on options still in their vesting period totaled $268,000 and $907,541, respectively.

Note 4. Leases

In February 2020, the Company entered into a two-year lease for office premises located at 4 Becker Farm Road, Suite 105, Roseland, New Jersey. Monthly base rent in year one of the lease is $4,356; and $4,459 in year 2 of the lease. The term (and payment of the monthly rent) commenced upon completion of the landlord’s work on August 1, 2020.

The Company’s existing Lease is not subject to any restrictions or covenants which preclude its ability to pay dividends, obtain financing, or enter into additional Lease’s.

As of September 30, 2021, the Company has not entered into any leases which have not yet commenced which would entitle the Company to significant rights or create additional obligations.

The Company does not have any finance leases.

Supplemental lease information as of September 30, 2021:

	As of September 30, 2021			As of December 31, 2020
Operating lease right-of-use asset	$	41,171		$	79,462
Current maturities of operating lease	$	43,192		$	51,125
Non-current operating lease		-			28,607
Total operating lease liabilities	$	43,192		$	79,732
Weighted Average remaining lease term (in years):		0.84			1.6
Discount rate:		7.0	%		7.0	%
Right-of-use asset obtained in exchange for lease obligation				$	98,402

Supplemental cash flow information for the nine months ended September 30, 2021:

Cash paid for amount included in the measurement of lease liabilities for operating lease $ 39,410

The Company leases office space under a non-cancellable operating lease expiring in 2022. Future lease payments included in the measurement of lease liabilities on the balance sheet at September 30, 2021 for future periods are as follows:

Years ending December 31, 2021,
2021 (Remaining)	$	13,377
2022		31,213
Total future minimum lease payments		44,590
Less imputed interest		(1,398	)
Total	$	43,192

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Note 5. Commitments and Contingencies

Stem Cell Systems

In connection with the Company’s anticipated regulatory filings, the Company has engaged StemCell Systems GmbH (“StemCell Systems”) to provide it with prototypes and related documents under various agreements. On July 1, 2020, the Company and StemCell Systems entered into a Strategic R&D Agreement (the “Strategic Agreement”) having an initial term of three years with successive one-year extensions unless earlier terminated. The Strategic Agreement includes a $27,000 monthly fee to be paid to StemCell Systems along with any additional expenses incurred. The Company, StemCell Systems and certain affiliates of StemCell Systems entered into a Rights of First Refusal and Corporate Opportunities Agreement (the “ROFR Agreement”). Pursuant to the ROFR Agreement, (i) in the event a StemCell Systems stockholder receives an offer from a third party to acquire the StemCell Systems stockholders ownership interest, the Company shall have ten business days to purchase such ownership, and (ii) if during the terms of the Strategic Agreement, any StemCell Systems inventions, with respect to skin, burns and wounds, designs, inventions and among other things, whether or not patentable, copyrightable or otherwise legally protectable are discovered by StemCell Systems, the Company shall have the first option to negotiate mutually agreeable terms for the Company’s acquisition or licensing of the StemCell Systems inventions. Pursuant to these engagements the Company incurred expenses of approximately $142,000 and $133,000 during the three months ended September 30, 2021 and 2020, respectively; and $391,000 and $401,000 during the nine months ended September 30, 2021 and 2020, respectively. Pursuant to the Strategic Agreement, as of September, 30, 2021, the Company is obligated to pay for services totaling approximately $819,000 through July 1, 2023.

SEC Complaint

On May 28, 2021 the SEC filed a civil complaint (the “Complaint”) naming the Company and Harmel S. Rayat, RenovaCare Chairman (the “Defendants”) as defendants. The Complaint charges Mr. Rayat and the Company with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and also charges Mr. Rayat with aiding and abetting the Company's violations of those provisions. The complaint also charges the Company with violating the reporting provisions of Exchange Act Section 15(d) and Rules 15d-11 and 12b-20 thereunder. The SEC seeks permanent injunctions and civil penalties against the Defendants, and officer-and-director and penny stock bars against Mr. Rayat. On August 31, 2021 the Defendants filed a response to the Complaint. On September 21, 2021, the SEC filed a motion to strike Defendants equitable affirmative defenses which motion was granted by the court on October 18, 2021.

The Company believes that the claims asserted in the Complaint are without merit and intends to defend this matter vigorously. However, because of the inherent uncertainty as to the outcome of this proceeding, the Company is unable, at this time, to estimate the possible impact of the outcome of this matter nor provide assurance that the available insurance coverage will be sufficient to see the Complaint through to resolution.

Class Action Complaints

On July 16 and July 21, 2021, two purported shareholders of the Company filed putative class actions in the United States District Court for the District of New Jersey against the Company and certain of its current and former executive officers (captioned Gabrielle A. Boller, Individually and On Behalf of All Others Similarly Situated v. RenovaCare, Inc., Harmel Rayat, and Thomas Bold, No. 2:21-cv-13766-SDW-ESK (“Boller”), and Michael Solakian, Individually and On Behalf of All Others Similarly Situated v. RenovaCare, Inc., Harmel Rayat, and Thomas Bold, No. 2:21-cv-13930 (“Solakian”), respectively)(the “Class Action Complaints”). The Class Action Complaints in Boller and Solakian were brought both individually and on behalf of a putative class of the Company’s stockholders, claiming that in connection with the facts and circumstances underlying the allegations in the SEC Complaint, the Company engaged in fraudulent conduct and made false and misleading statements of material fact or omitted to state material facts necessary to make the statements made not misleading. The class period identified in the Class Action Complaints is August 13, 2017 through May 28, 2021 Both Boller and Solakian seek to declare the action to be a class action and monetary damages, including costs and expenses, and award of reasonable attorneys’ fees, expert fees, and other costs, and such other relief as the Court may deem just and proper.

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The Company believes that the claims asserted in Boller and Solakian  and any other Class Actions derived from the SEC Complaint are without merit and intends to defend itself vigorously. Based on the early stages of these legal proceedings, and the inherent uncertainty as to their outcome, at this time, the Company is not able to reasonably estimate a possible range of loss, if any, that may result from the allegations set forth in the Class Action Complaints filed in the Class Actions.

Note 6. Transactions with Related Persons

During the three and nine months ended September 30, 2020, Talia Jevan Properties, Inc. made payments totaling $0 and $10,811, respectively, to Stephen Yan-Klassen, former CFO who resigned in 2020, for his salary on behalf of the Company. Talia Jevan Properties, Inc. is a related party of Harmel S. Rayat, Chairman of the Board.

On August 1, 2013, the Company entered into a consulting agreement, as amended on May 1, 2016, with Jatinder Bhogal, an individual owning in excess of 5% of the Company’s issued and outstanding shares of common stock, to provide consulting services to the Company through his wholly owned company, Vector Asset Management, Inc. (“VAMI”). Pursuant to the consulting agreement, VAMI assisted the Company with identifying subject matter experts in the medical device and biotechnology industries and assisted the Company with its ongoing research, development and eventual commercialization of its Regeneration Technology. Pursuant to an amendment dated May 1, 2016, the VAMI monthly consulting fee was increased from $5,000 to $6,800. On June 22, 2018, the Company and VAM entered into an Executive Consulting Agreement (the “ECA”) pursuant to which Mr. Bhogal served as the Company’s Chief Operating Officer. The ECA supersedes the prior consulting agreement. Pursuant to the ECA, VAMI received compensation of $120,000 per year. On July 1, 2020 the Company amended the ECA and paid VAMI $4,000 per month through November 30, 2020 and $200 per month thereafter until May 31, 2021 at which time the ECA as amended expired. For consulting services provided by VAMI, during the three months ended September 30, 2021 and 2020, the Company recognized expenses of $0 and $12,000, respectively; and $1,000 and $72,000 during the nine months ended September 30, 2021 and 2020, respectively. Jatinder Bhogal resigned as the Company’s COO effective June 30, 2020.

Note 7. Subsequent Events

Management has reviewed material events subsequent of the period ended September 30, 2021 and prior to the filing of financial statements in accordance with FASB ASC 855 “Subsequent Events”.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note Regarding Forward-Looking Statements

This discussion and analysis of financial condition and results of operations is based upon and should be read in conjunction with the unaudited interim consolidated financial statements of RenovaCare, Inc. (“RenovaCare”) and its wholly-owned subsidiary (collectively with RenovaCare, “we,” “our,” “us,” or the “Company”), appearing elsewhere in this Quarterly Report on Form 10-Q, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of any contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. On an on-going basis the Company reviews its estimates and assumptions. The estimates were based on historical experience and other assumptions that the Company believes to be reasonable under the circumstances. Actual results are likely to differ from those estimates under different assumptions or conditions, but we do not believe such differences will materially affect our financial position or results of operations. Critical accounting policies, the policies the Company believes are most important to the presentation of its financial statements and require the most difficult, subjective and complex judgments, are outlined below in “Critical Accounting Policies,” and have not changed significantly since 2020.

This Quarterly Report on Form 10-Q also contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as information relating to the Company that is based on management's exercise of business judgment and assumptions made by and information currently available to management. Although forward-looking statements in this Quarterly Report on Form 10-Q reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. When used in this document and other documents, releases and reports released by us, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “the facts suggest” and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted below. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. Actual events, transactions and results may materially differ from the anticipated events, transactions or results described in such statements. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements and unknown, unidentified or unpredictable factors could materially and adversely impact our future results. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to our forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Several of these factors include, without limitation:

· our ability to meet requisite regulations or receive regulatory approvals in the United States, and our ability to retain any regulatory approvals that we may obtain; and the absence of adverse regulatory developments in the United States and abroad;

· new entrance of competitive products or further penetration of existing products in our markets;

· results of our clinical trials;

· failure of our products to gain market acceptance;

· the cost and success of our development programs;

· our failure to obtain financing as, if and when needed, on commercially acceptable terms;

· our failure to attract and retain qualified personnel;

· our failure to adequately manage our growth and expansion;

· the effect on us from adverse publicity related to our products or the Company itself; and

· our failure to defend against any adverse claims relating to our intellectual property.

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The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by us. The reader is cautioned that no statements contained in this Form 10-Q should be construed as a guarantee or assurance of future performance or results. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks described in this report and matters described in this report generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur.

Overview

We are a development-stage biotechnology and medical device company focusing on the research, development and commercialization of autologous (using a patient's own cells) cellular therapies that can be used for medical and aesthetic applications. The Company does not have any commercialized products. The Company's activities have consisted principally of performing research and development activities, business development efforts, and raising capital to support such activities.

The Company, through its wholly owned subsidiary, RenovaCare Sciences Corp., owns the CellMist™ System which is a cell isolation procedure that enzymatically renders stem cells from the patient’s own skin or other tissues. The resulting stem cell suspension is administered topically with our SkinGun™ spray device as a cell therapy onto wounds including burns to facilitate healing.

In May 2021, the Company announced that the US Food and Drug Administration (FDA) fully approved the Company’s Investigational Device Exemption (IDE) application to conduct a clinical trial, designated CELLMIST 1, that will evaluate the safety and feasibility of autologous skin and pluripotent stem cells rendered by its manual CellMist™ System from donor skin and applied topically with the electronic SkinGun™ spray device for treatment of acute burn wounds. The clinical trial protocol is an open-label, single-arm clinical study that is enrolling 14 adult human burn subjects with partial-thickness, second-degree deep thermal burn wounds covering between 10% and 30% total body surface area. The Company may engage up to four (4) U.S. burn centers to conduct the clinical study. Currently, the clinical trial is activated, enrolling and treating patients. The CELLMIST 1 clinical study is expected to reach completion in late 2022.

Our unique new closed, automated cell isolation device to harvest stem cells from tissues using the CellMist^TM System is in prototype development. We expect significant time and resources will be devoted to develop our novel technology and determine the commercial feasibility of the product. Research and development of new technologies involve a high degree of risk, and there is no assurance that our development activities will result in a commercially viable product. The long-term profitability of our operations will be, in part, directly related to the cost and success of our development programs, which may be affected by a number of factors.

In August 2019, the Company was awarded a continuation of a patent allowing the SkinGun^TM to be used to spray all varieties of tissues and cells, thus allowing for its potential application in the regeneration of tissues and organs, beyond skin; and, in November 2020 and October 2021, the Company was issued a total of three new patents encompassing improvements to the SkinGun™, expanding its potential application beyond the surgical setting into the field, and allowing the use of liquid suspension solutions to include drugs, hormones, and other useful agents.

Currently, our proprietary technologies are the subject of and 43 U.S. and international patents or patent applications and 14 U.S. and international trademarks. Of the issued patents, five are U.S. patents and twelve have issued or are allowed in Australia, Canada, Europe, Germany, France, Italy, Japan, Korea, Netherlands, Spain, Switzerland/Lichenstein, and United Kingdom. The Company has six allowed trademarks in the United States, two European registered trademarks, two United Kingdom trademarks, two Japan trademarks, and two pending in Canada.

The Company has not generated any revenue and has sustained recurring losses and negative cash flows from operations since inception. The Company expects to incur losses as it continues development of its products and technologies and expects that it will need to raise additional capital through partnerships or the sale of its securities to accomplish its business plan. Failing to secure such additional funding before achieving sustainable revenue and profit from operations poses a significant risk. The Company's ability to fund the development of its cellular therapies depends on the amount and timing of cash receipts from future financing activities. There can be no assurance as to the availability or terms upon which such financing and capital might be available.

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Additionally, there is significant uncertainty relating to the full impact of the COVID-19 pandemic on the Company’s operations and capital requirements. Should financing when needed be unavailable or prohibitively expensive or the COVID-19 pandemic continue, it may adversely affect the Company’s ability to (i) retain employees and consultants; (ii) obtain additional financing on terms acceptable to the Company, if at all; (iii) delay regulatory submissions and approvals; (iv) delay, limit or preclude the Company from the operation of clinical study sites and testing laboratories; (v) delay, limit or preclude the Company from achieving technology or product development goals, milestones, or objectives; and (vi) preclude or delay entry into joint venture or partnership arrangements. The occurrence of any one or more of such events may affect the Company’s ability to continue its pathway to commercialization of its technology or products.

Although the Company continues to monitor the situation and may adjust policies as more information and public health guidance become available, the COVID-19 pandemic is ongoing, and its dynamic nature, including uncertainties relating to the ultimate spread of the virus, the severity of the disease, the duration of the outbreak and actions that may be taken by governmental authorities to contain the outbreak or to treat its impact, makes it difficult to assess whether there will be further impact on the development and commercialization of the Company’s technology which could have a material adverse effect on the Company’s results of operations and cash flows.

Components of Our Results of Operations

Revenue

To date we have not generated any product revenues and do not expect to generate any revenue for the foreseeable future. Our ability to generate revenue and become profitable depends upon our ability to obtain marketing approval and successfully commercialization of our CellMist^TM System.

Research and Development

Research and development (“R&D”) expenses consist primarily of costs incurred for the development of our CellMist^TM System and include:

· design, pilot-scale manufacturing and pre-clinical testing of our cell isolation and SkinGun^TM spray devices.

· employee-related expenses associated with our research and development activities, including salaries, benefits, travel and non-cash stock-based compensation expenses.

· costs associated with quality management systems including device verification and validation testing, and regulatory operations and regulatory compliance.

· expenses incurred under agreements related to our clinical trials.

· other research and development costs including contract consulting fees and non-cash stock-based compensation to contract research organizations (CROs) and other third parties.

We do not believe that it is possible at this time to accurately project total expenses required for us to reach commercialization of our CellMist^TM System. In the future, we expect that research and development expenses will increase due to our ongoing product development and approval efforts. We expense research and development costs as incurred.

General and Administrative

General and administrative expenses consist primarily of personnel costs, including non-cash stock-based compensation related to directors and employees, professional service costs including legal, accounting, and other consulting fees and other general and administrative expenses including investor relations, insurance, and facilities costs. We expect general and administrative expenses to increase in the future as we hire personnel and incur additional costs to support the expansion of our research and development activities and our operation as a public company.

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Stock-Based Compensation

Expense associated with equity-based transactions is calculated and expensed in our financial statements as required pursuant to various accounting rules and is non-cash in nature. Stock compensation represents the expense associated with the amortization of our stock options.

Other Income (Expense)

Other income consists of interest income earned on our cash and cash equivalents and the reimbursement of legal fees from our Directors & Officers insurance policy.

Income Taxes

We have yet to generate taxable income. We have historically incurred operating losses resulting in carry forward tax losses totaling approximately $22.3 million as of December 31, 2020. We anticipate that we will continue to generate tax losses for the foreseeable future and that we will be able to carry forward these tax losses indefinitely to future taxable years. Accordingly, we do not expect to pay taxes until we have taxable income after the full utilization of our carry forward tax losses. We have provided a full valuation allowance with respect to the deferred tax assets related to these carry forward losses.

Results of Operations

Comparison of Three and Nine Months Ended September 30, 2021 and September 30, 2020

Research and Development Expenses

		Three Months Ended September 30,				Increase /			Nine Months Ended September 30,				Increase /
		2021		2020		(Decrease)			2021		2020		(Decrease)
Manufacturing clinical supplies(1)	$	50,019	$	557,956	$	(507,937	)	$	298,090	$	940,021	$	(641,931	)
Personnel related(2)		113,248		81,667		31,581			382,926		253,216		129,710
Stock-based compensation(3)		224,000		455,271		(231,271	)		731,438		1,087,147		(355,709	)
Clinical trials(4)		243,030		29,500		213,530			768,987		33,900		735,087
Regulatory(5)		10,349		69,829		(59,480	)		32,253		158,716		(126,463	)
All other(5)		103,979		357,766		(253,787	)		289,793		618,383		(328,590	)
	$	744,625	$	1,551,989	$	(807,364	)	$	2,503,487	$	3,091,383	$	(587,896	)

(1) Manufacturing clinical supplies decreased due to completion of the pilot-scale manufacturing and validation testing of the components of the CellMist™ System and the electronic SkinGun™ spray device to be used in our clinical trials.

(2) Personnel related expenses increased due to the allocation of Stem Cell Systems personnel in support of the development of our CellMist™ System.

(3) Stock compensation expense decreased due primarily to the completion of vesting in 2020 of prior issued stock options in excess of the amounts recognized in the current year upon the continued vesting of other R&D related stock option grants.

(4) Clinical trial expenses increased due to the addition of clinical professionals, clinical site activation costs and costs related to the preparation of our clinical trials which began in the second quarter of 2021. We expect clinical trial expenses to increase moving forward due to patient enrollment, treatment, follow-up visits, clinical sample testing and medical site monitoring.

(5) All other expenses decreased as validation testing for the electronic SkinGun ™ concluded and we transitioned to prototype development of the cell isolation device at StemCell Systems.

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General and Administrative Expenses

		Three Months Ended September 30,				Increase /			Nine Months Ended September 30,					Increase /
		2021		2020		(Decrease)			2021			2020		(Decrease)
Personnel related(1)	$	223,591	$	245,135	$	(21,544	)	$	691,954		$	681,823	$	10,131
Stock-based compensation(2)		44,000		664,544		(620,544	)		(1,138,601	)		2,084,953		(3,223,554	)
Professional and consultant fees(3)		644,077		246,062		398,015			1,069,550			790,826		278,724
All other(4)		44,231		135,149		(90,918	)		196,762			466,715		(269,953	)
Total G&A Expense	$	955,899	$	1,290,890	$	(334,991	)	$	819,665		$	4,024,317	$	(3,204,652	)

(1) Personnel related costs are expected to decrease slightly due to lower headcount starting mid-year 2021.

(2) Stock compensation expense decreased due to the forfeiture and cancellation of 2,805,571 stock options as a result of the resignation of the Company’s former Chairman, President and Chief Executive Officer, the Company’s former Chief Financial Officer, and two members of the Company’s Board of Directors. Compensation expense was recorded on these options prior to their full vesting. As a result, the Company recognized a $0 and $1,314,705 reversal of the prior recognized compensation expense related to the cancelled options for the three and nine months ended September 30, 2021, respectively. The G&A expense recognized for options still in their vesting period totaled $44,000 and $176,104 during the three and nine months ended September 30, 2021, respectively.

(3) Professional and consultant fees increased primarily due to an increase in legal fees related to the SEC Complaint and fees related to our patents and trademarks offset by a decrease in accounting and consulting fees.

(4) All other costs decreased primarily due to the absence of the charitable contribution to the Office of Research at the University of Pittsburgh which the Company recognized $125,000 during the nine months ended September 30, 2020 in addition to decreases in investor relations and insurance offset by an increase in rent.

Liquidity and Capital Resources

The Company does not have any commercialized products, has not generated any meaningful revenue since inception and has sustained recurring losses and negative cash flows since inception. The Company has incurred operating losses of $3.3 million and $7.1 million during the nine months ended September 30, 2021 and 2020, respectively. The Company expects to incur losses as it continues development of its products and technologies. Historically, the Company has been funded through the sale of equity securities and debt financings. At September 30, 2021, the Company had approximately $3,400,000 in cash on hand and current liabilities of $713,000. The Company estimates cash will be depleted in less than one year from the date that these financial statements are available to be issued, if the Company does not generate sufficient cash to support operations. The future of the Company will depend on its ability to successfully raise capital from external sources to fund operations. If the Company is unable to obtain adequate funds, or if such funds are not available to it on acceptable terms, the Company's ability to continue its business to develop its cellular therapies will be significantly impaired and it may cause the Company to curtail operations.

Net cash used in operating activities was $4.0 million during the nine months ended September 30, 2021, primarily due to operating costs of $3.3 million and the payment of liabilities of approximately $600 thousand.

Net cash used in investing was $0 for the nine months ended September 30, 2021 and $49 thousand for the nine months ended September 30, 2020.

There was no net cash used in financing activities during the nine months ended September 30, 2021 and 2020.

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Fair Value of Financial Instruments and Risks

The carrying value of cash and accounts payable approximate their fair value because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.

Market Risk Disclosures

We have not entered into derivative contracts either to hedge existing risks or for speculative purposes during the nine months ended September 30, 2021 or year ended December 31, 2020, and the subsequent period through the date of this report.

Off-Balance Sheet Arrangements and Contractual Obligations

We do not have any off-balance sheet arrangements or contractual obligations at September 30, 2021, and the subsequent period through the date of this annual report, that are likely to have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that have not been disclosed in our consolidated financial statements.

Recently Accounting Standards

See Note 1 to our Consolidated Financial Statements for more information regarding recent accounting standards and their impact to our consolidated results of operations and financial position.

Transactions with Related Persons

See Note 6 to our Consolidated Financial Statements for more information regarding transactions with related persons and their impact to our consolidated results of operations and financial position.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined as a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

The Company maintains “disclosure controls and procedures,” as such term is defined under Rule 13a-15(e) and 15d-15(e) of the Exchange Act, that are designed to provide reasonable assurance that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Our management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the framework in “Internal Control — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this evaluation, management concluded that our internal control over financial reporting was not effective at September 30, 2021 due to inadequate segregation of duties consistent with control objectives. Our Company’s management is comprised of a very small number of individuals resulting in a situation where limitations of segregation of duties exist. In order to remedy this situation, we would need to hire additional staff to provide greater segregation of duties. Management believes that the material weaknesses set forth above were the result of the scale of our operations and are intrinsic to our small size and that this weakness did not have a material effect on our financial statements and results of operations.

Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act), or in factors that could materially affect internal controls, during the three months ended September 30, 2021, or subsequent to the date that management completed their evaluation, that materially affected, or are reasonably likely to materially affect, our internal control over financing reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are involved in litigation and other proceedings, including matters related to intellectual property and regulatory claims. See Note 5 to our unaudited consolidated financial statements for information on certain legal proceedings, which is incorporated by reference herein.

Item 1A. Risk Factors

Our results of operations and financial condition could be adversely affected by numerous risks. In addition to the other information in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for Fiscal 2020. These are not the only risks and uncertainties facing us. Additional risks not currently known to us or that we currently believe are immaterial may also negatively impact our business, financial condition, results of operations and future prospects.

We are the subject of an SEC Complaint. Adverse developments in our ongoing proceeding and/or future legal proceedings could have a material adverse effect on our business, reputation, financial condition, results of operations or stock price.

We are currently subject to an SEC Complaint. Refer to Note 5 to our Consolidated Financial Statements of this Quarterly Report for additional information regarding this specific matter. We may be subject to additional investigations, arbitration proceedings, audits, regulatory inquiries and similar actions, including matters related to intellectual property, employment, securities laws, disclosures, tax, accounting, class action and product liability, as well as regulatory and other claims related to our business and our industry, which we refer to collectively as legal proceedings. We cannot predict the outcome of any particular proceeding, or whether ongoing investigations, will be resolved favorably or ultimately result in charges or material damages, fines or other penalties, enforcement actions, bars against serving as an officer or director, or practicing before the SEC, or civil or criminal proceedings against us or members of our senior management.

Legal proceedings in general, and securities and class action litigation and regulatory investigations in particular, can be expensive and disruptive. Our insurance may not cover all claims that may be asserted against us, and we are unable to predict how long the legal proceedings to which we are currently subject will continue. An unfavorable outcome of any legal proceeding may have an adverse impact on our business, financial condition and results of operations or our stock price. Any proceeding could negatively impact our reputation among our stakeholders. Furthermore, publicity surrounding ongoing legal proceedings, even if resolved favorably for us, could result in additional legal proceedings against us, as well as damage our image.

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Item 6. Exhibits

Exhibit No.	Description of Exhibit
31.1	Certification of the Principal Executive Officer pursuant to Rule 13a-14(a).*
31.2	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a).*
32.1	Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	Inline XBRL Instance Document**
101.SCH	Inline XBRL Taxonomy Extension - Schema Document**
101.CAL	Inline XBRL Taxonomy Extension - Calculation Linkbase Document**
101.DEF	Inline XBRL Taxonomy Extension - Definition Linkbase Document**
101.LAB	Inline XBRL Taxonomy Extension - Label Linkbase Document**
101.PRE	Inline XBRL Taxonomy Extension - Presentation Linkbase Document**
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

_______________

*

Filed herewith.

**

Furnished herewith. iXBRL (Inline eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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SIGNATURES

Pursuant to the requirements of Sections 13 or 15 (d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

RenovaCare, Inc.

(Registrant)

Date: November 12, 2021	By:	/s/ Dr. Kaiyo Nedd
	Name:	Dr. Kaiyo Nedd
	Title:	Chief Executive Officer
		(Principal Executive Officer)
Date: November 12, 2021	By:	/s/ Justin Frere, CPA
	Name:	Justin Frere, CPA
	Title:	Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13A-14(A) OR RULE 15D-14(A)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Dr. Kaiyo Nedd, certify that:

1. I have reviewed this quarterly report on Form 10-Q of RenovaCare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 12, 2021	By:	/s/ Dr. Kaiyo Nedd
	Name:	Dr. Kaiyo Nedd
	Title:	Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13A-14(A) OR RULE 15D-14(A)

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Justin Frere, certify that:

1. I have reviewed this quarterly report on Form 10-Q of RenovaCare, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 12, 2021	By:	/s/ Justin Frere, CPA
	Name:	Justin Frere, CPA
	Title:	Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, as the Chief Executive Officer and the Chief Financial Officer of RenovaCare, Inc., respectively, certifies that, to the best of their knowledge and belief, the Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2021 that accompanies this certification fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of RenovaCare, Inc. at the dates and for the periods indicated. The foregoing certification is made pursuant to 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and shall not be relied upon for any other purpose.

Date: November 12, 2021	By:	/s/ Dr. Kaiyo Nedd
	Name:	Dr. Kaiyo Nedd
	Title:	Chief Executive Officer and Director
		(Principal Executive Officer)
Date: November 12, 2021	By:	/s/ Justin Frere, CPA
	Name:	Justin Frere, CPA
	Title:	Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 10, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-30156
Entity Registrant Name	RENOVACARE, INC.
Entity Central Index Key	0001016708
Entity Tax Identification Number	98-0384030
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	9375 E. Shea Blvd.
Entity Address, Address Line Two	Suite 107-A
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85260
City Area Code	888
Local Phone Number	398-0202
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		87,352,364

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash	$ 3,421,765	$ 7,412,969
Prepaid expenses	464,315	566,275
Total current assets	3,886,080	7,979,244
Equipment, net of accumulated depreciation of $10,630 and $3,584, respectively	31,594	38,640
Intangible assets	152,854	152,854
Security Deposit	7,995	7,995
Right of Use Asset	41,171	79,462
Other Assets	72,497	137,749
Total assets	4,192,191	8,395,944
Current liabilities
Accounts payable and accrued liabilities	670,125	1,237,437
Lease liability - current	43,192	51,125
Total current liabilities	713,317	1,288,562
Lease Liability - long term		28,607
Total liabilities	713,317	1,317,169
Commitments and contingencies
Stockholders' equity
Preferred stock: $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding
Common stock: $0.00001 par value; 500,000,000 shares authorized, 87,352,364 shares issued and outstanding at September 30, 2021 and December 31, 2020	874	874
Additional paid-in capital	36,373,669	36,846,082
Retained deficit	(32,895,669)	(29,768,181)
Total stockholders' equity	3,478,874	7,078,775
Total liabilities and stockholders' equity	$ 4,192,191	$ 8,395,944

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	87,352,364	87,352,364
Common Stock, Shares, Outstanding	87,352,364	87,352,364

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue
Operating expenses
Research and development	744,625	1,551,989	2,503,487	3,091,383
General and administrative	955,899	1,290,890	819,665	4,024,317
Total operating expenses, net	1,700,524	2,842,879	3,323,152	7,115,700
Loss from operations	(1,700,524)	(2,842,879)	(3,323,152)	(7,115,700)
Other income
Interest income	2,239	24,915	4,861	111,390
Other income			190,803
Total other income	2,239	24,915	195,664	111,390
Net loss	$ (1,698,285)	$ (2,817,964)	$ (3,127,488)	$ (7,004,310)
Basic and Diluted Loss per Common Share	$ (0.02)	$ (0.03)	$ (0.04)	$ (0.08)
Weighted average number of common shares outstanding - basic and diluted	87,352,364	87,352,364	87,352,364	87,352,364

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (UNAUDITED) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 874	$ 32,378,833	$ (20,219,845)	$ 12,159,862
Beginning balnce, shares at Dec. 31, 2019	87,352,364
Stock based compensation due to common stock purchase options		465,763		465,763
Net loss			(1,174,753)	(1,174,753)
Ending balance, value at Mar. 31, 2020	$ 874	32,844,596	(21,394,598)	11,450,872
Ending balance, shares at Mar. 31, 2020	87,352,364
Stock based compensation due to common stock purchase options		1,586,522		1,586,522
Net loss			(3,011,593)	(3,011,593)
Ending balance, value at Jun. 30, 2020	$ 874	34,431,118	(24,406,191)	10,025,801
Ending balance, shares at Jun. 30, 2020	87,352,364
Stock based compensation due to common stock purchase options		1,119,815		1,119,815
Stock based compensation issued for prepaid services		260,997		260,997
Net loss			(2,817,964)	(2,817,964)
Ending balance, value at Sep. 30, 2020	$ 874	35,811,930	(27,224,155)	8,588,649
Ending balance, shares at Sep. 30, 2020	87,352,364
Beginning balance, value at Dec. 31, 2020	$ 874	36,846,082	(29,768,181)	7,078,775
Beginning balnce, shares at Dec. 31, 2020	87,352,364
Stock based compensation due to common stock purchase options		352,063		352,063
Reversal of stock based compensation due to common stock purchase option cancellations		(1,248,575)		(1,248,575)
Net loss			(517,242)	(517,242)
Ending balance, value at Mar. 31, 2021	$ 874	35,949,570	(30,285,423)	5,665,021
Ending balance, shares at Mar. 31, 2021	87,352,364
Stock based compensation due to common stock purchase options		243,979		243,979
Reversal of stock based compensation due to common stock purchase option cancellations		(66,130)		(66,130)
Net loss			(911,961)	(911,961)
Ending balance, value at Jun. 30, 2021	$ 874	36,127,419	(31,197,384)	4,930,909
Ending balance, shares at Jun. 30, 2021	87,352,364
Stock based compensation due to common stock purchase options		246,250		246,250
Net loss			(1,698,285)	(1,698,285)
Ending balance, value at Sep. 30, 2021	$ 874	$ 36,373,669	$ (32,895,669)	$ 3,478,874
Ending balance, shares at Sep. 30, 2021	87,352,364

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows used in operating activities
Net loss	$ (3,127,488)	$ (7,004,310)
Adjustments to reconcile net loss to net cash flows used in operating activities
Depreciation expense	7,046	309
Stock based compensation expense	(407,163)	3,172,100
Amortization of right of use asset	38,291	6,978
Changes in operating assets and liabilities:
(Increase) decrease in prepaid expenses and other assets	101,960	(69,608)
Increase (decrease) in accounts payable	(567,312)	416,045
Increase (decrease) in accounts payable - related parties		20,675
Increase (decrease) in lease liability	(36,538)	(6,874)
Net cash flows used in operating activities	(3,991,204)	(3,464,685)
Cash flows from investing activity
Decrease (increase) in security deposit		(7,995)
Purchase of fixed assets		(41,273)
Net cash flows from investing activity		(49,268)
Decrease in cash	(3,991,204)	(3,513,953)
Cash at beginning of period	7,412,969	12,185,248
Cash at end of period	3,421,765	8,671,295
Supplemental disclosure of non cash financing activities
Stock based compensation issued for prepaid services		$ 260,997

XML

Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share

Note 1. Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of RenovaCare, Inc. and Subsidiary (“RenovaCare” or the “Company”) as of September 30, 2021, and for the three and nine months ended September 30, 2021 and 2020 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for  quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 31, 2020 included in our Annual Report on Form 10-K filed with the SEC on March 31, 2021.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Actual results may differ from those estimates. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments (including normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial position as of September 30, 2021, results of operations and stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.

Organization

RenovaCare, Inc., formerly Janus Resources, is a Nevada corporation. RenovaCare, Inc. was incorporated under the laws of the State of Utah on July 14, 1983 as Far West Gold, Inc..

The Company has an authorized capital of 500,000,000 shares of $0.00001 par value common stock, of which 87,352,364 shares are outstanding as of September 30, 2021, and 10,000,000 shares of $0.0001 par value preferred stock, of which none are outstanding.

RenovaCare, Inc., through its wholly owned subsidiary, RenovaCare Sciences Corp. is a development-stage company focusing on the research, development and commercialization of autologous (using a patient’s own cells) cellular therapies that can be used for medical and aesthetic applications.

On July 12, 2013, the Company completed the acquisition of its flagship technologies (collectively, the “CellMist^TM System”). The CellMist™ System is a cell isolation procedure that enzymatically renders stem cells from the patient’s own skin or other tissues. The resulting stem cell suspension is administered topically from the Company’s novel solution sprayer device (the “SkinGun^TM”) as a cell therapy onto wounds including burns to facilitate healing.

Currently, our proprietary technologies are the subject of and 43 U.S. and international patents or patent applications and 14 U.S. and international trademarks. Of the issued patents, five are U.S. patents and twelve have issued or are allowed in Australia, Canada, Europe, Germany, France, Italy, Japan, Korea, Netherlands, Spain, Switzerland/Lichenstein, and United Kingdom.

On May 6, 2021 the Food and Drug Administration gave full-approval of the Company’s Investigational Device Exemption (IDE) application to proceed with initial clinical testing of the CellMist™ System and SkinGun™ spray device in adult burn patients.

Improvements in the design and efficiency of the CellMist™ System including a closed, automated cell isolation device and the SkinGun™ spray device are in development with StemCell Systems (Berlin, Germany), the Company’s R&D innovation partner. The Company is adapting its core technologies for possible use in other clinical indications. The Company is also developing the cell isolation and spray gun devices as stand-alone 510(k)-cleared products for isolation of cells from other tissues and spraying other solutions of medical importance.

The Company's activities have consisted principally of performing research and development activities and raising capital to support such activities. The Company has enlisted the assistance of several Contract Manufacturing Organizations (CMO) to manufacture clinical supplies including components of the CellMist System™ and the electronic SkinGun™ spray devices in compliance with FDA’s guidance for current Good Manufacturing Practices (cGMP) and Contract Research Organizations (CRO) to test and validate the Company’s products and processes and to conduct clinical trials that evaluate initially the safety and feasibility of an autologous skin cell therapy using the Company’s products to facilitate burn wound healing. These development activities are subject to significant risks and uncertainties, including possible failure of preclinical and clinical testing. The Company has not generated any revenue and has sustained recurring losses and negative cash flows from operations since inception. The Company expects to incur losses as it continues development of its products and technologies and expects that it will need to raise additional capital through partnerships or the sale of its securities to accomplish its business plan. Failing to secure such additional funding before achieving sustainable revenue and profit from operations poses a significant risk. The Company's ability to fund the development of its cellular therapies depends on the amount and timing of cash receipts from future financing activities. There can be no assurance as to the availability or terms upon which such financing and capital might be available.

Liquidity and Going Concern

The Company has prepared its consolidated financial statements on a “going concern” basis, which presumes that it will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Since Inception, the Company has incurred net operating losses and operating cash flow deficits. The Company does not currently generate revenues and will continue to incur losses from operations and operating cash flow deficits in the future. The Company's activities are subject to significant risks and uncertainties due to the stage of the development of the Company's cellular therapies.

At September 30, 2021, the Company had approximately $3,400,000 in cash on hand. The Company estimates cash will be depleted in less than one year from the date that these financial statements are available to be issued, if the Company does not generate sufficient cash to support operations.

The future of the Company will depend on its ability to successfully raise capital from external sources to fund operations. If the Company is unable to obtain adequate funds, or if such funds are not available to it on acceptable terms, the Company's ability to continue its business to develop its cellular therapies will be significantly impaired and it may cause the Company to curtail operations.

The matters described above raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these condensed consolidated financial statements were issued.

Recent Accounting Standards

Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative non-governmental US GAAP as found in the Financial Accounting Standards Board's Accounting Standards Codification.

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable, the Company has not identified any standards that the Company believes merit further discussion other than as discussed above. The Company believes that none of the new standards will have a significant impact on the financial statements.

Earnings (Loss) Per Share

The Company presents both basic and diluted earnings per share ("EPS"). Basic EPS is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period presented. Diluted EPS amounts are based upon the weighted average number of common and common equivalent shares outstanding during the period presented. The Company has not included the effects of warrants or stock options on net loss per share because to do so would be antidilutive.

Following is the computation of basic and diluted net loss per share for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Basic and Diluted EPS Computation
Numerator:
Loss available to common stockholders'	$	(1,698,285	)	$	(2,817,964	)	$	(3,127,488	)	$	(7,004,310	)
Denominator:
Weighted average number of common shares outstanding		87,352,364			87,352,364			87,352,364			87,352,364
Basic and diluted EPS	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.08	)
The shares listed below were not included in the computation of diluted losses
per share because to do so would have been antidilutive for the periods presented:
Stock options		3,139,999			5,845,570			3,139,999			5,845,570
Warrants		11,712,496			12,296,912			11,712,496			12,296,912
Total shares not included in the computation of diluted losses per share		14,852,495			18,142,482			14,852,495			18,142,482

XML

Prepaid Expenses

9 Months Ended

Sep. 30, 2021

Prepaid Expenses

Prepaid Expenses

Note 2. Prepaid Expenses

Prepaid expenses consist of the following:

	September 30,		December 31,
	2021		2020
Prepaid insurance	$	-	$	54,180
Prepaid stock options for services		87,001		86,999
Prepaid professional fees		65,000		65,000
Prepaid research and development expense		296,196		289,746
Other prepaid costs		16,118		70,350
Total prepaid expenses	$	464,315	$	566,275

XML

Equity

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity

Note 3. Equity

2013 Long-Term Incentive Plan

On June 20, 2013, the Company’s Board of Directors (the “Board”) adopted the 2013 Long-Term Incentive Plan (the “2013 Plan”) and on November 15, 2013, a stockholder owning a majority of the Company’s issued and outstanding stock approved adoption to the 2013 Plan. Pursuant to the terms of the 2013 Plan, an aggregate of 20,000,000 shares of the Company’s common stock have been reserved for issuance to the Company’s officers, directors, employees and consultants in order to attract and hire key technical personnel and management. Options granted to employees under the 2013 Plan, including directors and officers who are employees, may be incentive stock options or non-qualified stock options; options granted to others under the 2013 Plan are limited to non-qualified stock options. As of September 30, 2021, there were 16,618,266 shares available for future grants.

The 2013 Plan is administered by the Board or a committee designated by the Board. Subject to the provisions of the 2013 Plan, the Board has the authority to determine the officers, employees and consultants to whom options will be granted, the number of shares covered by each option, vesting rights and the terms and conditions of each option that is granted to them; however, no person may be granted options to purchase more than 2,000,000 shares in any one fiscal year under the 2013 Plan, and the aggregate fair market value (determined at the time the option is granted) of the shares with respect to which incentive stock options are exercisable for the first time by an optionee during any calendar year cannot exceed $100,000. Options granted pursuant to the 2013 Plan are exercisable no later than ten years after the date of grant.

The exercise price per share of common stock for options granted under the 2013 Plan is the fair market value of the Company's common stock on the date of grant, using the closing price of the Company's common stock on the last trading day prior to the date of grant, except for incentive stock options granted to a holder of ten percent or more of the Company's common stock, for whom the exercise price per share will not be less than 110% of the fair market value. No option can be granted under the 2013 Plan after June 20, 2023.

Common Stock

At September 30, 2021, the Company had 500,000,000 authorized shares of common stock with a par value of $0.00001 per share and 87,352,364 shares of common stock outstanding.

During the three and nine months ended September 30, 2021 and 2020, the Company did not have any common stock transactions.

Warrants

The Company has issued warrants to purchase common stock at various exercise prices in connection with loan agreements and private placements. The following table summarizes information about warrants outstanding at September 30, 2021 and December 31, 2020:

	Shares of Common Stock Issuable from Warrants Outstanding as of			Weighted
	September 30,	December 31,		Average
Description	2021	2020		Exercise Price	Expiration
Series E	-	584,416	$	1.54	September 9, 2021
Series F	7,246	7,246	$	3.45	February 23, 2022 & March 9, 2022
Series G	460,250	460,250	$	2.68	July 21, 2022
Series H	910,000	910,000	$	2.75	October 16, 2022
Series I	10,335,000	10,335,000	$	2.00	November 26, 2025
Total	11,712,496	12,296,912

During the three months ended September 30, 2021, all the Series E Warrants expired unexercised.

Stock Options

The following table summarizes stock option activity for the six months ended September 30, 2021:

	Number of Options			Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($)
Outstanding at December 31, 2020		5,895,570			2.45		5.14		1,650
Granted		50,000			1.72		9.82		-
Forfeited		(2,805,571	)		2.74
Outstanding at September 30, 2021		3,139,999			2.17		4.79		1,650
Vested and exercisable at September 30, 2021		2,564,999			1.95		4.73		1,650

The valuation methodology used to determine the fair value of stock options is the Black-Scholes Model. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the risk-free interest rate, and the expected term of the stock options. The ranges of assumptions used in the Black-Scholes Model during the nine months ended September 30, 2021 and 2020 is set forth in the table below:

	Nine Months Ended September 30,
	2021			2020
Risk-free interest rate		0.73	%		0.021%	–	1.67%
Expected term in years		5.38			3.25	–	6.00
Weighted Avg. Expected Volatility		102.07			103.56%	–	110.71%
Expected dividend yield		0	%			0%

The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the expected term. Estimated volatility is a measure of the amount by which the stock price is expected to fluctuate each year during the term of an award. Our calculation of estimated volatility is based on historical stock prices over a period equal to the term of the awards. The average expected life is based on the contractual terms of the stock option using the simplified method. We utilize a dividend yield of zero based on the fact that we have never paid cash dividends and have no current intention to pay cash dividends. Future stock-based compensation may significantly differ based on changes in the fair value of our Common Stock and our estimates of expected volatility and the other relevant assumptions.

The following table sets forth the share-based compensation cost resulting from stock option grants, including those previously granted and vesting over time, that were recorded in the Company’s Statements of Operations for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021			2020
Research and development	$	224,000	$	455,271	$	731,438		$	1,087,147
General and administrative		44,000		664,544		(1,138,601	)		2,084,953
Total	$	268,000	$	1,119,815	$	(407,163	)	$	3,172,100

Nine Months Ended September 30, 2021

On July 26, 2021, in connection with an Executive Services Consulting Agreement of the same date, the Company granted Justin Frere, the Company’s Chief Financial Officer, an option to purchase up to 50,000 shares of the Company’s common stock at an exercise price of $1.72 and with a term of 10 years.

During the first half of 2021, certain individuals resigned from the Company resulting in the forfeiture and cancellation of 2,805,571 options. Compensation expense was recorded on some of these options prior to their full vesting. As a result, during the nine months ended September 30, 2021, the Company recognized $1,314,705 of reversals of the prior recognized compensation expense related to the cancelled options. During the three and nine months ended September 30, 2021, the expense recognized on options still in their vesting period totaled $268,000 and $907,541, respectively.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Note 4. Leases

In February 2020, the Company entered into a two-year lease for office premises located at 4 Becker Farm Road, Suite 105, Roseland, New Jersey. Monthly base rent in year one of the lease is $4,356; and $4,459 in year 2 of the lease. The term (and payment of the monthly rent) commenced upon completion of the landlord’s work on August 1, 2020.

The Company’s existing Lease is not subject to any restrictions or covenants which preclude its ability to pay dividends, obtain financing, or enter into additional Lease’s.

As of September 30, 2021, the Company has not entered into any leases which have not yet commenced which would entitle the Company to significant rights or create additional obligations.

The Company does not have any finance leases.

Supplemental lease information as of September 30, 2021:

	As of September 30, 2021			As of December 31, 2020
Operating lease right-of-use asset	$	41,171		$	79,462
Current maturities of operating lease	$	43,192		$	51,125
Non-current operating lease		-			28,607
Total operating lease liabilities	$	43,192		$	79,732
Weighted Average remaining lease term (in years):		0.84			1.6
Discount rate:		7.0	%		7.0	%
Right-of-use asset obtained in exchange for lease obligation				$	98,402

Supplemental cash flow information for the nine months ended September 30, 2021:

Cash paid for amount included in the measurement of lease liabilities for operating lease $ 39,410

The Company leases office space under a non-cancellable operating lease expiring in 2022. Future lease payments included in the measurement of lease liabilities on the balance sheet at September 30, 2021 for future periods are as follows:

Years ending December 31, 2021,
2021 (Remaining)	$	13,377
2022		31,213
Total future minimum lease payments		44,590
Less imputed interest		(1,398	)
Total	$	43,192

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 5. Commitments and Contingencies

Stem Cell Systems

In connection with the Company’s anticipated regulatory filings, the Company has engaged StemCell Systems GmbH (“StemCell Systems”) to provide it with prototypes and related documents under various agreements. On July 1, 2020, the Company and StemCell Systems entered into a Strategic R&D Agreement (the “Strategic Agreement”) having an initial term of three years with successive one-year extensions unless earlier terminated. The Strategic Agreement includes a $27,000 monthly fee to be paid to StemCell Systems along with any additional expenses incurred. The Company, StemCell Systems and certain affiliates of StemCell Systems entered into a Rights of First Refusal and Corporate Opportunities Agreement (the “ROFR Agreement”). Pursuant to the ROFR Agreement, (i) in the event a StemCell Systems stockholder receives an offer from a third party to acquire the StemCell Systems stockholders ownership interest, the Company shall have ten business days to purchase such ownership, and (ii) if during the terms of the Strategic Agreement, any StemCell Systems inventions, with respect to skin, burns and wounds, designs, inventions and among other things, whether or not patentable, copyrightable or otherwise legally protectable are discovered by StemCell Systems, the Company shall have the first option to negotiate mutually agreeable terms for the Company’s acquisition or licensing of the StemCell Systems inventions. Pursuant to these engagements the Company incurred expenses of approximately $142,000 and $133,000 during the three months ended September 30, 2021 and 2020, respectively; and $391,000 and $401,000 during the nine months ended September 30, 2021 and 2020, respectively. Pursuant to the Strategic Agreement, as of September, 30, 2021, the Company is obligated to pay for services totaling approximately $819,000 through July 1, 2023.

SEC Complaint

On May 28, 2021 the SEC filed a civil complaint (the “Complaint”) naming the Company and Harmel S. Rayat, RenovaCare Chairman (the “Defendants”) as defendants. The Complaint charges Mr. Rayat and the Company with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and also charges Mr. Rayat with aiding and abetting the Company's violations of those provisions. The complaint also charges the Company with violating the reporting provisions of Exchange Act Section 15(d) and Rules 15d-11 and 12b-20 thereunder. The SEC seeks permanent injunctions and civil penalties against the Defendants, and officer-and-director and penny stock bars against Mr. Rayat. On August 31, 2021 the Defendants filed a response to the Complaint. On September 21, 2021, the SEC filed a motion to strike Defendants equitable affirmative defenses which motion was granted by the court on October 18, 2021.

The Company believes that the claims asserted in the Complaint are without merit and intends to defend this matter vigorously. However, because of the inherent uncertainty as to the outcome of this proceeding, the Company is unable, at this time, to estimate the possible impact of the outcome of this matter nor provide assurance that the available insurance coverage will be sufficient to see the Complaint through to resolution.

Class Action Complaints

On July 16 and July 21, 2021, two purported shareholders of the Company filed putative class actions in the United States District Court for the District of New Jersey against the Company and certain of its current and former executive officers (captioned Gabrielle A. Boller, Individually and On Behalf of All Others Similarly Situated v. RenovaCare, Inc., Harmel Rayat, and Thomas Bold, No. 2:21-cv-13766-SDW-ESK (“Boller”), and Michael Solakian, Individually and On Behalf of All Others Similarly Situated v. RenovaCare, Inc., Harmel Rayat, and Thomas Bold, No. 2:21-cv-13930 (“Solakian”), respectively)(the “Class Action Complaints”). The Class Action Complaints in Boller and Solakian were brought both individually and on behalf of a putative class of the Company’s stockholders, claiming that in connection with the facts and circumstances underlying the allegations in the SEC Complaint, the Company engaged in fraudulent conduct and made false and misleading statements of material fact or omitted to state material facts necessary to make the statements made not misleading. The class period identified in the Class Action Complaints is August 13, 2017 through May 28, 2021 Both Boller and Solakian seek to declare the action to be a class action and monetary damages, including costs and expenses, and award of reasonable attorneys’ fees, expert fees, and other costs, and such other relief as the Court may deem just and proper.

The Company believes that the claims asserted in Boller and Solakian  and any other Class Actions derived from the SEC Complaint are without merit and intends to defend itself vigorously. Based on the early stages of these legal proceedings, and the inherent uncertainty as to their outcome, at this time, the Company is not able to reasonably estimate a possible range of loss, if any, that may result from the allegations set forth in the Class Action Complaints filed in the Class Actions.

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Transactions with Related Persons

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Transactions with Related Persons

Note 6. Transactions with Related Persons

During the three and nine months ended September 30, 2020, Talia Jevan Properties, Inc. made payments totaling $0 and $10,811, respectively, to Stephen Yan-Klassen, former CFO who resigned in 2020, for his salary on behalf of the Company. Talia Jevan Properties, Inc. is a related party of Harmel S. Rayat, Chairman of the Board.

On August 1, 2013, the Company entered into a consulting agreement, as amended on May 1, 2016, with Jatinder Bhogal, an individual owning in excess of 5% of the Company’s issued and outstanding shares of common stock, to provide consulting services to the Company through his wholly owned company, Vector Asset Management, Inc. (“VAMI”). Pursuant to the consulting agreement, VAMI assisted the Company with identifying subject matter experts in the medical device and biotechnology industries and assisted the Company with its ongoing research, development and eventual commercialization of its Regeneration Technology. Pursuant to an amendment dated May 1, 2016, the VAMI monthly consulting fee was increased from $5,000 to $6,800. On June 22, 2018, the Company and VAM entered into an Executive Consulting Agreement (the “ECA”) pursuant to which Mr. Bhogal served as the Company’s Chief Operating Officer. The ECA supersedes the prior consulting agreement. Pursuant to the ECA, VAMI received compensation of $120,000 per year. On July 1, 2020 the Company amended the ECA and paid VAMI $4,000 per month through November 30, 2020 and $200 per month thereafter until May 31, 2021 at which time the ECA as amended expired. For consulting services provided by VAMI, during the three months ended September 30, 2021 and 2020, the Company recognized expenses of $0 and $12,000, respectively; and $1,000 and $72,000 during the nine months ended September 30, 2021 and 2020, respectively. Jatinder Bhogal resigned as the Company’s COO effective June 30, 2020.

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Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 7. Subsequent Events

Management has reviewed material events subsequent of the period ended September 30, 2021 and prior to the filing of financial statements in accordance with FASB ASC 855 “Subsequent Events”.

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Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited interim consolidated financial statements of RenovaCare, Inc. and Subsidiary (“RenovaCare” or the “Company”) as of September 30, 2021, and for the three and nine months ended September 30, 2021 and 2020 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for  quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 31, 2020 included in our Annual Report on Form 10-K filed with the SEC on March 31, 2021.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Actual results may differ from those estimates. The accompanying unaudited interim consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments (including normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s consolidated financial position as of September 30, 2021, results of operations and stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The Company did not record an income tax provision during the periods presented due to net taxable losses. The results of operations for any interim period are not necessarily indicative of the results of operations for the entire year.

Organization

Organization

RenovaCare, Inc., formerly Janus Resources, is a Nevada corporation. RenovaCare, Inc. was incorporated under the laws of the State of Utah on July 14, 1983 as Far West Gold, Inc..

The Company has an authorized capital of 500,000,000 shares of $0.00001 par value common stock, of which 87,352,364 shares are outstanding as of September 30, 2021, and 10,000,000 shares of $0.0001 par value preferred stock, of which none are outstanding.

RenovaCare, Inc., through its wholly owned subsidiary, RenovaCare Sciences Corp. is a development-stage company focusing on the research, development and commercialization of autologous (using a patient’s own cells) cellular therapies that can be used for medical and aesthetic applications.

On July 12, 2013, the Company completed the acquisition of its flagship technologies (collectively, the “CellMist^TM System”). The CellMist™ System is a cell isolation procedure that enzymatically renders stem cells from the patient’s own skin or other tissues. The resulting stem cell suspension is administered topically from the Company’s novel solution sprayer device (the “SkinGun^TM”) as a cell therapy onto wounds including burns to facilitate healing.

Currently, our proprietary technologies are the subject of and 43 U.S. and international patents or patent applications and 14 U.S. and international trademarks. Of the issued patents, five are U.S. patents and twelve have issued or are allowed in Australia, Canada, Europe, Germany, France, Italy, Japan, Korea, Netherlands, Spain, Switzerland/Lichenstein, and United Kingdom.

On May 6, 2021 the Food and Drug Administration gave full-approval of the Company’s Investigational Device Exemption (IDE) application to proceed with initial clinical testing of the CellMist™ System and SkinGun™ spray device in adult burn patients.

Improvements in the design and efficiency of the CellMist™ System including a closed, automated cell isolation device and the SkinGun™ spray device are in development with StemCell Systems (Berlin, Germany), the Company’s R&D innovation partner. The Company is adapting its core technologies for possible use in other clinical indications. The Company is also developing the cell isolation and spray gun devices as stand-alone 510(k)-cleared products for isolation of cells from other tissues and spraying other solutions of medical importance.

The Company's activities have consisted principally of performing research and development activities and raising capital to support such activities. The Company has enlisted the assistance of several Contract Manufacturing Organizations (CMO) to manufacture clinical supplies including components of the CellMist System™ and the electronic SkinGun™ spray devices in compliance with FDA’s guidance for current Good Manufacturing Practices (cGMP) and Contract Research Organizations (CRO) to test and validate the Company’s products and processes and to conduct clinical trials that evaluate initially the safety and feasibility of an autologous skin cell therapy using the Company’s products to facilitate burn wound healing. These development activities are subject to significant risks and uncertainties, including possible failure of preclinical and clinical testing. The Company has not generated any revenue and has sustained recurring losses and negative cash flows from operations since inception. The Company expects to incur losses as it continues development of its products and technologies and expects that it will need to raise additional capital through partnerships or the sale of its securities to accomplish its business plan. Failing to secure such additional funding before achieving sustainable revenue and profit from operations poses a significant risk. The Company's ability to fund the development of its cellular therapies depends on the amount and timing of cash receipts from future financing activities. There can be no assurance as to the availability or terms upon which such financing and capital might be available.

Liquidity and Going Concern

Liquidity and Going Concern

The Company has prepared its consolidated financial statements on a “going concern” basis, which presumes that it will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Since Inception, the Company has incurred net operating losses and operating cash flow deficits. The Company does not currently generate revenues and will continue to incur losses from operations and operating cash flow deficits in the future. The Company's activities are subject to significant risks and uncertainties due to the stage of the development of the Company's cellular therapies.

At September 30, 2021, the Company had approximately $3,400,000 in cash on hand. The Company estimates cash will be depleted in less than one year from the date that these financial statements are available to be issued, if the Company does not generate sufficient cash to support operations.

The future of the Company will depend on its ability to successfully raise capital from external sources to fund operations. If the Company is unable to obtain adequate funds, or if such funds are not available to it on acceptable terms, the Company's ability to continue its business to develop its cellular therapies will be significantly impaired and it may cause the Company to curtail operations.

The matters described above raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these condensed consolidated financial statements were issued.

Recent Accounting Standards

Recent Accounting Standards

Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative non-governmental US GAAP as found in the Financial Accounting Standards Board's Accounting Standards Codification.

The Company reviews new accounting standards as issued. Although some of these accounting standards issued or effective after the end of the Company’s previous fiscal year may be applicable, the Company has not identified any standards that the Company believes merit further discussion other than as discussed above. The Company believes that none of the new standards will have a significant impact on the financial statements.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The Company presents both basic and diluted earnings per share ("EPS"). Basic EPS is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period presented. Diluted EPS amounts are based upon the weighted average number of common and common equivalent shares outstanding during the period presented. The Company has not included the effects of warrants or stock options on net loss per share because to do so would be antidilutive.

Following is the computation of basic and diluted net loss per share for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Basic and Diluted EPS Computation
Numerator:
Loss available to common stockholders'	$	(1,698,285	)	$	(2,817,964	)	$	(3,127,488	)	$	(7,004,310	)
Denominator:
Weighted average number of common shares outstanding		87,352,364			87,352,364			87,352,364			87,352,364
Basic and diluted EPS	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.08	)
The shares listed below were not included in the computation of diluted losses
per share because to do so would have been antidilutive for the periods presented:
Stock options		3,139,999			5,845,570			3,139,999			5,845,570
Warrants		11,712,496			12,296,912			11,712,496			12,296,912
Total shares not included in the computation of diluted losses per share		14,852,495			18,142,482			14,852,495			18,142,482

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Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of computation of basic and diluted net loss per share

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Basic and Diluted EPS Computation
Numerator:
Loss available to common stockholders'	$	(1,698,285	)	$	(2,817,964	)	$	(3,127,488	)	$	(7,004,310	)
Denominator:
Weighted average number of common shares outstanding		87,352,364			87,352,364			87,352,364			87,352,364
Basic and diluted EPS	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.08	)
The shares listed below were not included in the computation of diluted losses
per share because to do so would have been antidilutive for the periods presented:
Stock options		3,139,999			5,845,570			3,139,999			5,845,570
Warrants		11,712,496			12,296,912			11,712,496			12,296,912
Total shares not included in the computation of diluted losses per share		14,852,495			18,142,482			14,852,495			18,142,482

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Prepaid Expenses (Tables)

9 Months Ended

Sep. 30, 2021

Prepaid Expenses

Prepaid Expenses

	September 30,		December 31,
	2021		2020
Prepaid insurance	$	-	$	54,180
Prepaid stock options for services		87,001		86,999
Prepaid professional fees		65,000		65,000
Prepaid research and development expense		296,196		289,746
Other prepaid costs		16,118		70,350
Total prepaid expenses	$	464,315	$	566,275

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Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Summary of warrants outstanding

	Shares of Common Stock Issuable from Warrants Outstanding as of			Weighted
	September 30,	December 31,		Average
Description	2021	2020		Exercise Price	Expiration
Series E	-	584,416	$	1.54	September 9, 2021
Series F	7,246	7,246	$	3.45	February 23, 2022 & March 9, 2022
Series G	460,250	460,250	$	2.68	July 21, 2022
Series H	910,000	910,000	$	2.75	October 16, 2022
Series I	10,335,000	10,335,000	$	2.00	November 26, 2025
Total	11,712,496	12,296,912

Summary of stock option activity

	Number of Options			Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($)
Outstanding at December 31, 2020		5,895,570			2.45		5.14		1,650
Granted		50,000			1.72		9.82		-
Forfeited		(2,805,571	)		2.74
Outstanding at September 30, 2021		3,139,999			2.17		4.79		1,650
Vested and exercisable at September 30, 2021		2,564,999			1.95		4.73		1,650

Summary of assumption of stock option activity

	Nine Months Ended September 30,
	2021			2020
Risk-free interest rate		0.73	%		0.021%	–	1.67%
Expected term in years		5.38			3.25	–	6.00
Weighted Avg. Expected Volatility		102.07			103.56%	–	110.71%
Expected dividend yield		0	%			0%

Summary of consolidated statement of operations

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021			2020
Research and development	$	224,000	$	455,271	$	731,438		$	1,087,147
General and administrative		44,000		664,544		(1,138,601	)		2,084,953
Total	$	268,000	$	1,119,815	$	(407,163	)	$	3,172,100

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of supplemental lease information

	As of September 30, 2021			As of December 31, 2020
Operating lease right-of-use asset	$	41,171		$	79,462
Current maturities of operating lease	$	43,192		$	51,125
Non-current operating lease		-			28,607
Total operating lease liabilities	$	43,192		$	79,732
Weighted Average remaining lease term (in years):		0.84			1.6
Discount rate:		7.0	%		7.0	%
Right-of-use asset obtained in exchange for lease obligation				$	98,402

Supplemental cash flow information for the nine months ended September 30, 2021:

Cash paid for amount included in the measurement of lease liabilities for operating lease $ 39,410

Leases (Details 1)

Years ending December 31, 2021,
2021 (Remaining)	$	13,377
2022		31,213
Total future minimum lease payments		44,590
Less imputed interest		(1,398	)
Total	$	43,192

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Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Loss available to common stockholders'	$ (1,698,285)	$ (2,817,964)	$ (3,127,488)	$ (7,004,310)
Denominator:
Weighted average number of common shares outstanding	87,352,364	87,352,364	87,352,364	87,352,364
Basic and diluted EPS	$ (0.02)	$ (0.03)	$ (0.04)	$ (0.08)
The shares listed below were not included in the computation of diluted losses
Total shares not included in the computation of diluted losses per share	14,852,495	18,142,482	14,852,495	18,142,482
Share-based Payment Arrangement [Member]
The shares listed below were not included in the computation of diluted losses
Total shares not included in the computation of diluted losses per share	3,139,999	5,845,570	3,139,999	5,845,570
Warrant [Member]
The shares listed below were not included in the computation of diluted losses
Total shares not included in the computation of diluted losses per share	11,712,496	12,296,912	11,712,496	12,296,912

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Basis of Presentation, Organization, Liquidity and Going Concern, Recent Accounting Standards and Earnings (Loss) Per Share (Details Narrative) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Common Stock, Shares, Outstanding	87,352,364	87,352,364
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Outstanding	0	0
Cash	$ 3,400,000

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Prepaid Expenses (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Prepaid Expenses
Prepaid insurance		$ 54,180
Prepaid stock options for services	87,001	86,999
Prepaid professional fees	65,000	65,000
Prepaid research and development expense	296,196	289,746
Other prepaid costs	16,118	70,350
Total prepaid expenses	$ 464,315	$ 566,275

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Equity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Series E [Member]
Class of Warrant or Right [Line Items]
Shares of Common Stock Issuable from Warrants Outstanding		584,416
Weighted Average Exercise Price	$ 1.54
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Sep. 09, 2021
Series F [Member]
Class of Warrant or Right [Line Items]
Shares of Common Stock Issuable from Warrants Outstanding	7,246	7,246
Weighted Average Exercise Price	$ 3.45
Series F [Member] | Minimum [Member]
Class of Warrant or Right [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Feb. 23, 2022
Series F [Member] | Maximum [Member]
Class of Warrant or Right [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Mar. 09, 2022
Series G [Member]
Class of Warrant or Right [Line Items]
Shares of Common Stock Issuable from Warrants Outstanding	460,250	460,250
Weighted Average Exercise Price	$ 2.68
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Jul. 21, 2022
Series H [Member]
Class of Warrant or Right [Line Items]
Shares of Common Stock Issuable from Warrants Outstanding	910,000	910,000
Weighted Average Exercise Price	$ 2.75
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Oct. 16, 2022
Series I [Member]
Class of Warrant or Right [Line Items]
Shares of Common Stock Issuable from Warrants Outstanding	10,335,000	10,335,000
Weighted Average Exercise Price	$ 2.00
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Nov. 26, 2025
Warrant [Member]
Class of Warrant or Right [Line Items]
Shares of Common Stock Issuable from Warrants Outstanding	11,712,496	12,296,912

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Equity (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Options outstanding - beginning balance	5,895,570
Weighted Average Exercise Price, Options outstanding - beginning balance	$ 2.45
Options outstanding	4 years 9 months 14 days	5 years 1 month 20 days
Aggregate intrinsic value, Options outstanding - beginning balance	$ 1,650
Options granted	50,000
Weighted Average Exercise Price, Options granted	$ 1.72
Options granted		9 years 9 months 25 days
Aggregate intrinsic value, Options granted
Options forfeited	(2,805,571)
Weighted Average Exercise Price, Options forfeited	$ 2.74
Options oustanding - ending balance	3,139,999	5,895,570
Weighted Average Exercise Price, Options outstanding - ending balance	$ 2.17	$ 2.45
Aggregate intrinsic value, Options oustanding - ending balance	$ 1,650	$ 1,650
Options Vested and Exercisable	2,564,999
Weighted Average Exercise Price, Options Vested and Exercisable	$ 1.95
Options Vested and Exercisable	4 years 8 months 23 days
Aggregate intrinsic value, Options Vested and Exercisable	$ 1,650

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Equity (Details 2)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Risk-free interest rate	0.73%
Expected life in years	5 years 4 months 17 days
Expected Volatility	102.07%
Expected dividend yield	0.00%	0.00%
Minimum [Member]
Risk-free interest rate		0.021%
Expected life in years		3 years 3 months
Expected Volatility		103.56%
Maximum [Member]
Risk-free interest rate		1.67%
Expected life in years		6 years
Expected Volatility		110.71%

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Equity (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total	$ 268,000	$ 1,119,815	$ (407,163)	$ 3,172,100
Research and Development Expense [Member] | Share-based Payment Arrangement, Option [Member]
Total	224,000	455,271	731,438	1,087,147
General and Administrative Expense [Member] | Share-based Payment Arrangement, Option [Member]
Total	$ 44,000	$ 664,544	$ (1,138,601)	$ 2,084,953

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Equity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Jul. 26, 2021	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		16,618,266	16,618,266
Common Stock, Shares Authorized		500,000,000	500,000,000	500,000,000
Common Stock, Par or Stated Value Per Share		$ 0.00001	$ 0.00001	$ 0.00001
Common Stock, Shares, Outstanding		87,352,364	87,352,364	87,352,364
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period			2,805,571
Reversal of stock based compensation due			$ 1,314,705
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 268,000	$ 907,541
Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	50,000
Exercise Price	$ 1.72
Option term	10 years
N 2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			20,000,000
Stock options grant description			The 2013 Plan is administered by the Board or a committee designated by the Board. Subject to the provisions of the 2013 Plan, the Board has the authority to determine the officers, employees and consultants to whom options will be granted, the number of shares covered by each option, vesting rights and the terms and conditions of each option that is granted to them; however, no person may be granted options to purchase more than 2,000,000 shares in any one fiscal year under the 2013 Plan, and the aggregate fair market value (determined at the time the option is granted) of the shares with respect to which incentive stock options are exercisable for the first time by an optionee during any calendar year cannot exceed $100,000. Options granted pursuant to the 2013 Plan are exercisable no later than ten years after the date of grant.
Excecise price per share limit			not be less than 110% of the fair market value.

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Leases (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use asset	$ 41,171	$ 79,462
Current maturities of operating lease	43,192	51,125
Non-current operating lease		28,607
Total operating lease liabilities	$ 43,192	$ 79,732
Weighted Average remaining lease term (in years):	10 months 2 days	1 year 7 months 6 days
Discount rate	7.00%	7.00%
Right-of-use asset obtained in exchange for lease obligation	$ 98,402

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Leases (Details 1) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021 (Remaining)	$ 13,377
2022	31,213
Total future minimum lease payments	44,590
Less imputed interest	(1,398)
Total	$ 43,192	$ 79,732

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Leases (Details Narrative)	9 Months Ended
	Sep. 30, 2021 USD ($)
Leases [Abstract]
Base rent for First year	$ 4,356
Base rent for Second year	$ 4,459
Lessee, Operating Lease, Term of Contract	2 years

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Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Litigation Settlement, Expense	$ 142,000	$ 133,000	$ 391,000	$ 401,000
Stem Cell Systems [Member]
Defined Benefit Plan Disclosure [Line Items]
Debt Instrument, Periodic Payment			$ 27,000

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Transactions with Related Persons (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 22, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Vector Asset Management, Inc [Member]
Related Party Transaction [Line Items]
Share-based Payment Arrangement, Expense	$ 120,000
Payment Of Compensation Description	per year. On July 1, 2020 the Company amended the ECA and paid VAMI $4,000 per month through November 30, 2020 and $200 per month thereafter until May 31, 2021 at which time the ECA as amended expired.
Costs and Expenses, Related Party		$ 0	$ 12,000	$ 1,000	$ 72,000
Stephen Yan-Klesson
Related Party Transaction [Line Items]
Related Party Costs			$ 0		$ 10,811