10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

[X]	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended March 31, 2019
[  ]	Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from __________  to __________
	Commission File Number: 000-25911

Skinvisible, Inc.

(Exact name of Registrant as specified in its charter)

Nevada	88-0344219
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

6320 South Sandhill Road, Suite 10, Las Vegas, NV 89120

(Address of principal executive offices)

702.433.7154

(Registrant’s telephone number)

 _______________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

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

[X] Yes [ ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] 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.

[  ] Large accelerated filer	[  ] Accelerated filer
[  ] Non-accelerated filer	[X] 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 Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

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

State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 2,896,689 common shares as of May 15, 2019

1

	TABLE OF CONTENTS	Page
PART I – FINANCIAL INFORMATION
Item 1:	Financial Statements	3
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	11
Item 4:	Controls and Procedures	11
PART II – OTHER INFORMATION
Item 1:	Legal Proceedings	12
Item 1A:	Risk Factors	12
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	12
Item 3:	Defaults Upon Senior Securities	12
Item 4:	Mine Safety Disclosure	12
Item 5:	Other Information	12
Item 6:	Exhibits	13

2

PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

Our consolidated financial statements included in this Form 10-Q are as follows:

F-1   Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 (unaudited);

F-2   Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (unaudited);

F-3 Consolidated Statements of Stockholders’ Deficit for the three months ended March 31, 2019 and 2018 (unaudited);

F-4  Consolidated Statements of Cash Flow for the three months ended March 31, 2019 and 2018 (unaudited);

F-5   Notes to Consolidated Financial Statements.

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the SEC instructions to Form 10-Q.  In the opinion of management, all adjustments considered necessary for a fair presentation have been included.  Operating results for the interim period ended March 31, 2019 are not necessarily indicative of the results that can be expected for the full year.

3

SKINVISIBLE, INC. 

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2019			December 31, 2018
ASSETS	(Unaudited)
Current assets
Cash	$	2,005		$	2,482`
Accounts receivable		5,053			8,459
Inventory		17,088			17,417
Due from related party		1,145			1,145
Prepaid expense and other current assets		9,000			12,000
Total current assets		34,291			41,503
Fixed assets, net of accumulated depreciation of $327,491 and $327,432, respectively		59			118
Intangible and other assets:
Patents and trademarks, net of accumulated amortization of $503,509 and $493,918, respectively		170,101			178,767
Total assets	$	204,451		$	220,388
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	1,015,900		$	944,380
Accounts payable related party		22,692			10,490
Accrued interest payable		1,252,599			1,169,293
Loans from related party		86,400			40,000
Loans payable		633,000			633,000
Convertible notes payable, net of unamortized debt discount of $0 and $78, respectively		220,000			219,922
Convertible notes payable related party, net of unamortized discount of $652,169 and $765,825 respectively		2,036,374			1,922,718
Total current liabilities		5,266,965			4,939,803
Total liabilities		5,266,965			4,939,803
Commitments and contingencies (Note 13)
Stockholders' deficit
Common stock; $0.001 par value; 200,000,000 shares authorized; 2,896,689 and 2,896,689 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively		2,897			2,897
Shares payable		2,053,466			2,053,466
Additional paid-in capital		24,774,887			24,774,887
Accumulated deficit		(31,893,764	)		(31,550,665)
Total stockholders' deficit		(5,062,514	)		(4,719,415)
Total liabilities and stockholders' deficit	$	204,451		$	220,388

See Accompanying Notes to Consolidated Financial Statements.

F-1

SKINVISIBLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED) 

	Three Months Ended
	March 31, 2019			March 31, 2018
Revenues	$	8,367		$	15,632
Cost of revenues		376			7,873
Gross profit		7,991			7,759
Operating expenses
Depreciation and amortization		9,651			9,630
Selling general and administrative		144,432			172,695
Total operating expenses		154,083			182,325
Loss from operations		(146,092	)		(174,566)
Other income and (expense)
Other income		5,000			4,807
Interest expense		(202,007	)		(280,230)
Gain on sale of Ovation Science Inc.		—			595,127
Loss on equity method investment		—			(21,810)
Gain (loss) on extinguishment of debt		—			(26,798)
Total other income (expense)		(197,007	)		271,096
Net income (loss)	$	(343,099	)	$	96,530
Basic and fully diluted earnings (loss) per common share	$	(0.12	)	$	0.01
Basic weighted average number of common shares outstanding		2,896,689			2,795,785
Diluted weighted average number of common shares outstanding		2,896,689			9,303,924

See Accompanying Notes to Consolidated Financial Statements. 

F-2

SKINVISIBLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

(UNAUDITED) 

For the Three months Ended March 31, 2018
	Common Stock
	Shares		Amount		Additional Paid-in Capital			Shares payable		Accumulated Deficit			Total  Stockholders' Deficit
Balance, December 31, 2017 (audited)		2,737,281		2,737		24,884,672			61,976		(31,709,007	)		(6,759,622)
Shares issued for accounts payable		82,271		82		93,060			47,949		—			141,091
Loss on debt modification		—		—		(320,756	)		—		—			(320,756)
Net income		—		—		—			—		96,530			96,530
Balance, March 31, 2018 (unaudited)		2,819,552		2,819		24,656,976			109,925		(31,612,477	)		(6,842,757)

For the Three months Ended March 31, 2019
	Common Stock
	Shares		Amount		Additional Paid-in Capital		Shares payable		Accumulated Deficit			Total Stockholders’ Deficit
Balance, December 31, 2018 (audited)		2,896,689		2,897		24,774,887		2,053,466		(31,550,665	)		(4,719,415)
Net loss		—		—		—		—		(343,099	)		(343,099)
Balance, March 31, 2019 (unaudited)		2,896,689		2,897		24,774,887		2,053,466		(31,893,764	)		(5,062,514)

See Accompanying Notes to Consolidated Financial Statements. 

F-3

SKINVISIBLE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED) 

	Three Months Ended
	March 31, 2019			March 31, 2018
Cash flows from operating activities:
Net Income (loss)	$	(343,099	)	$	96,530
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization		9,651			9,630
Gain on sale of Ovation Science Inc.		—			(595,127)
Amortization of debt discount		113,734			131,351
Loss on equity method investment		—			21,810
Imputed interest on Ovation Science loan		—			4,807
Gain on extinguishment of debt		—			26,798
Changes in operating assets and liabilities:
Decrease in inventory		329			7,348
Decrease in prepaid assets		3,000			2,500
Decrease in accounts receivable		3,406			206
Increase in accounts payable and accrued liabilities		83,722			93,387
Decrease in due from related party		—			291
Decrease in promissory note from Ovation Science Inc.		—			81,052
Increase in accrued interest		83,306			144,056
Net cash provided by (used in) operating activities		(45,951	)		24,639
Cash flows from investing activities:
Purchase of fixed and intangible assets		(926	)		—
Net cash used in investing activities		(926	)		—
Cash flows from financing activities:
Proceeds from related party loans		46,400			—
Payments on related party loans		—			(10,000)
Payments on notes payable		—			(5,000)
Net cash provided by (used in) financing activities		46,400			(15,000)
Net change in cash		(477	)		9,639
Cash, beginning of period		2,482			23,318
Cash, end of period	$	2,005		$	32,957
Supplemental disclosure of cash flow information:
Cash paid for interest	$	1,192		$	7,932
Cash paid for tax	$	—		$	—
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Non-cash investing and financing activities:
Common stock issued on extinguishment of debts	$	—		$	74,449

See Accompanying Notes to Consolidated Financial Statements.

F-4

SKINVISIBLE, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED) 

1. DESCRIPTION OF BUSINESS AND HISTORY

Description of business – Skinvisible, Inc., (referred to as the “Company”) is focused on the development and manufacture and sales of innovative topical, transdermal and mucosal polymer-based delivery system technologies and formulations incorporating its patent-pending formula/process for combining hydrophilic and hydrophobic polymer emulsions. The technologies and formulations have broad industry applications within the pharmaceutical, over-the-counter, personal skincare and cosmetic arenas. Additionally, the Company’s non-dermatological formulations, offer solutions for a broad spectrum of markets women’s health, pain management, and others. The Company maintains executive and sales offices in Las Vegas, Nevada.

History – The Company was incorporated in Nevada on March 6, 1998, under the name of Microbial Solutions, Inc. The Company underwent a name change on February 26, 1999, when it changed its name to Skinvisible, Inc. The Company’s subsidiary’s name of Manloe Labs, Inc. was also changed to Skinvisible Pharmaceuticals, Inc.

On September 9, 2014, the Company formed Kinatri USA Inc., a wholly-owned subsidiary, to market a premium line of scientifically formulated skincare products powered by our patented Invisicare® technology. As part of its strategic focus on revenue generation and creating shareholder value, Kintari USA Inc. products will be sold via network marketing.

The Kintari product portfolio consists of anti-aging products to help fight the signs of aging. These products have been developed using proven anti-aging ingredients with scientific evidence of their effectiveness at reducing the look of fine lines and wrinkles resulting in youthful looking skin. These potent ingredients will be powered by patented Invisicare technology, providing consumers with unique, effective products which the Company believes cannot be duplicated. Additional products will be added to enhance this product line as the Company grows and expands.

On September 26, 2017, the Company purchased 5,750,000 shares of common stock of Ovation Science Inc. (“Ovation”) for $32,286 which at the time of purchase the Company represented 99.9% of the then issued and outstanding common stock. On March 28, 2018 the Company sold its interest in Ovation to officers of the Company for $500,000 which represented a 37.80% interest in Ovation. As of March 31, 2019 Skinvisible Inc. owned 0% of the issued and outstanding Common stock of Ovation.

Skinvisible granted to Ovation, and has assigned its rights under the Canopy Agreement, the exclusive worldwide right to manufacture, distribute, sell, market, sub-license and promote the Products made with cannabis or hemp seed oil including the right to use the subject matter of any Skinvisible product formulation, patents and trademarks which cover the Products or Polymer.

Skinvisible, Inc., together with its subsidiaries, shall herein be collectively referred to as the “Company.”

2. BASIS OF PRESENTATION AND GOING CONCERN

Basis of presentation – The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements on Form 10-K filed with the SEC on April 15, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principals in the U.S. for complete financial statements.

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $31,893,764 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company plans to seek additional debt and equity funding but the Company’s ability to raise additional capital through the future issuances of common stock or debt is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

F-5

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

3. SUMMARY OF SIGNIFICANT POLICIES

This summary of significant accounting policies of Skinvisible Inc. is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the consolidated financial statements.

Principles of consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated.

Use of estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, inventory valuation, and the valuations of non-cash capital stock issuances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.

Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term instruments with original maturities of three months or less to be cash equivalents. There are $2,005 and $2,482 in cash as of March 31, 2019 and December 31, 2018 respectively.

Fair Value of Financial Instruments – The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Revenue recognition – We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board's (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five steps be followed in evaluating revenue recognition: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation.

F-6

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED) 

We did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated statements of operations for the three months ended March 31, 2019 and 2018 as a result of applying Topic 606.

As of March 31, 2019 and December 31, 2018, the Company had $5,053 and $8,459, respectively, in receivables related to royalty contracts.

The company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by the company from its customers (sales and use taxes, value added taxes, some excise taxes).

Accounts Receivable – Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of March 31, 2019, the Company had not recorded a reserve for doubtful accounts.

Inventory – Substantially all inventory consists of finished goods and are valued based upon first-in first-out ("FIFO") cost, not in excess of market. The determination of whether the carrying amount of inventory requires a write-down is based on an evaluation of inventory.

Goodwill and intangible assets – The Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “Intangibles – Goodwill and Other”. According to this statement, goodwill and intangible assets with indefinite lives are no longer subject to amortization, but rather an annual assessment of impairment by applying a fair-value based test. Fair value for goodwill is based on discounted cash flows, market multiples and/or appraised values as appropriate. Under ASC 350-10, the carrying value of assets are calculated at the lowest level for which there are identifiable cash flows.

Income taxes – The Company accounts for its income taxes in accordance with FASB Codification Topic ASC 740-10, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Stock-based compensation – The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an Employee Stock Purchase Plan based on the estimated fair values.

Stock based compensation expense recognized under ASC 718-10 for the three months ended March 31, 2019 and March 31, 2018 totaled $0 and $0, respectively.

Earnings (loss) per share – The Company reports earnings (loss) per share in accordance with FASB Codification Topic ASC 260-10 “Earnings Per Share”, Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There are 7,506,688 additional shares issuable in connection with outstanding options, warrants, stock payable and convertible debts would be considered dilutive as of March 31, 2019. Diluted earnings (loss) per share has not been presented for the three months ending March 31, 2019, since the effect of the assumed exercise of options and warrants to purchase common shares (common stock equivalents) would have an anti-dilutive effect.

F-7

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

Recently issued accounting pronouncements – In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which modifies the accounting for share-based payment awards issued to nonemployees to largely align it with the accounting for share-based payment awards issued to employees. ASU 2018-07 is effective for us for annual periods beginning January 1, 2019. The adoption of the standard had no impact on our financial position or results of operations for the three months ending March 31, 2018 and 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASC 842”). The guidance requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC 842 is effective for fiscal years beginning after December 15, 2018.

We adopted ASC 842 effective January 1, 2019 using the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, comparative financial information was not adjusted and continues to be reported under the prior lease accounting guidance in ASC 840. We elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less.

The Company has evaluated all other recent accounting pronouncements, and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows.

4. FIXED ASSETS

Fixed assets consist of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
		(Unaudited)
Machinery and equipment	$	48,163		$	48,163
Furniture and fixtures		113,635			113,635
Computers, equipment and software		39,722			39,722
Leasehold improvements		12,569			12,569
Lab equipment		113,461			113,461
Total		327,550			327,550
Less: accumulated depreciation		(327,491	)		(327,432)
Fixed assets, net of accumulated depreciation	$	59		$	118

Depreciation expense for the three months ended March 31, 2019 and March 31, 2018 was $59 and $64, respectively.

5. INVENTORY

Inventory consist of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
		(Unaudited)
Shipping and Packing materials	$	8,599	$	8,611
Finished Goods		2,370		2,687
Raw Materials		6,119		6,119
Total	$	17,088	$	17,417

F-8

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

6.    INTANGIBLE AND OTHER ASSETS

Patents and trademarks and other intangible assets are capitalized at their historical cost and are amortized over their estimated useful lives. As of March 31, 2019, intangible assets total $673,610, net of $503,509 of accumulated amortization.

Amortization expense for the three months ended March 31, 2019 and March 31, 2018 was $9,592 and $9,566, respectively.

License and distributor rights (“agreement”) were acquired by the Company in January 1999 and provide exclusive use distribution of polymers and polymer based products. The Company has a non-expiring term on the license and distribution rights. Accordingly, the Company annually assesses this license and distribution rights for impairment and has determined that no impairment write-down is considered necessary as of March 31, 2019.

7. STOCK OPTIONS AND WARRANTS

The following is a summary of option activity during the three months ended March 31, 2019.

	Number of Shares			Weighted Average Exercise Price
Balance, December 31, 2018		161,000		$	1.80
Options granted and assumed		—			—
Options expired		(26,000	)		2.00-
Options canceled		—			—
Options exercised		—			—
Balance, March 31, 2019		135,000		$	1.76

As of March 31, 2019, all stock options outstanding are exercisable.

Stock warrants -

The following is a summary of warrants activity during the three months ended March 31, 2019.

	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2018		72,200	$	1.18
Warrants granted and assumed		—		—
Warrants expired		—		—
Warrants canceled		—		—
Warrants exercised		—		—
Balance, March 31, 2019		72,200	$	1.18

As of March 31, 2019, all stock warrants outstanding are exercisable.

F-9

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

8. NOTES PAYABLE

On May 22, 2013, the Company approved a financing plan to offer accredited investors up to $1,000,000 in secured promissory notes. During the year ended December 31, 2013, the Company entered into twenty-four 9% notes payable to investors and received total proceeds of $1,000,000. The notes are due two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods.” During the year ending December 31, 2018 the Company made principal payments of $5,000.

On May 19, 2014, the Company approved a financing plan to offer accredited investors up to an additional $1,000,000 in secured promissory notes. During the period from May 19, 2014 to March 31, 2015 the Company entered into twenty-seven 9% notes payable to investors and received total proceeds of $1,000,000. The notes were due two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods." $1,000,000 in notes have reached their maturity date.

During the period from April 1, 2015 and September 30, 2015, the Company entered into thirteen additional 9% notes payable to investors and received total proceeds of $326,000. The notes were due two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods".

During the year ending December 31, 2018, the Company executed agreements with 41 noteholders that participated in the Company’s debt offerings between May 22, 2013 and September 30, 2015. In accordance with the agreements the Company and the investors agreed to settle a total of $1,663,875 in outstanding principal and $385,563 in accrued interest in exchange for the issuance of 1,024,719 shares of the Company’s common stock. The Company fair valued the shares issuable on the date each investors signed their respective agreement. As of the March 31, 2019, the Company had not yet issued the shares to the investors and has recorded stock payable of $874,294 as a result of the transaction on the accompanying Balance Sheet.

On January 27, 2016, the Company entered into a 12% unsecured note payable to an investor and received total proceeds of $33,000. The note was due on May 30, 2016. As of March 31, 2019 and December 31, 2018, the note is in default as no payments had been made towards the principal balance.

As of March 31, 2019, $633,000 of the outstanding notes payable were due in less than 12 months and have been classified as current notes payable.

9.    RELATED PARTY TRANSACTIONS

During the three months ended March 31, 2019, $46,400 was advanced by an officer.

As of March 31, 2019, $86,400 in advances remained due to officers of the company. All other related party notes have been extinguished or re-negotiated as convertible notes. (See note 12 for additional details.)

F-10

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

10. CONVERTIBLE NOTES PAYABLE

Convertible Notes Payable at consists of the following:	March 31,		December 31,
	2019		2018
$1,000,000 face value 9% secured notes payable to investors, due in 2015. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The notes have reach maturity and are now in default, under the notes default provisions the entire balance is now due upon demand. During the year ending December 31, 2018, the Company executed agreements with 14 of the noteholders that participated in the Company’s convertible debt offering. In accordance with the agreements the Company and the investors agreed to settle a total of $960,000 in outstanding principal and $219,172 in accrued interest in exchange for the issuance of 589,586 shares of the Company’s common stock. As of the March 31, 2019 the Company had not yet issued the shares to the investors. The company treated the loan modification as a debt repurchase and as a result of the transaction has recorded stock payable of $1,179,172 on the accompanying balance sheet.		40,000		40,000
Original issue discount		—		—
Unamortized debt discount		—		—
Total, net of unamortized discount		40,000		40,000
On October 26, 2015 the Company issued a $135,000 face value 9% unsecured notes payable to investors, due October 26, 2017. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®.		135,000		135,000
Unamortized debt discount		—		—
Total, net of unamortized discount		135,000		135,000
On February 17, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $20,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on February 17, 2018. The note is convertible at any time following 90 days after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 90% of the average five day market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The holder’s ability to convert the note, however, is limited in that it will not be permitted to convert any portion of the note if the number of shares of our common stock beneficially owned by the holder and its affiliates, together with the number of shares of our common stock issuable upon any full or partial conversion, would exceed 4.99% of the Company’s outstanding shares of common stock.		20,000		20,000
Unamortized debt discount		—		—
Total, net of unamortized discount		20,000		20,000
On August 11, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $15,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on August 11, 2018. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note.		15,000		15,000
Unamortized debt discount		—		—
Total, net of unamortized discount		15,000		15,000
On January 27, 2017, the Company entered into a convertible promissory note pursuant to which it borrowed $10,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on January 27, 2019. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The Company has determined the value associated with the beneficial conversion feature in connection with the notes negotiated on January 27, 2017 to be $2,138. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $78 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method		10,000		10,000
Unamortized debt discount		—		(78)
Total, net of unamortized discount		10,000		9,922
	$	220,000	$	219,922

F-11

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

11. CONVERTIBLE NOTES PAYABLE RELATED PARTY

Convertible Notes Payable Related Party at consists of the following:	March 31,			December 31,
	2019			2018
On October 20, 2016, the Company re-negotiated $982,253 of the unsecured notes payable. Under the modified terms the $982,253 face value notes maturity date was extended until December 31, 2019 and adjusted to the current market prices. At the investor’s option until the repayment date, the note can be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. In accordance with ASC 470, the Company has determined the value associated with the beneficial conversion feature in connection with the re-negotiated notes on October 20, 2016 to be $982,253. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $58,389 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 28, 2018, $238,115 of the notes were settled as part of the purchase of Ovation Science Inc.		744,137			744,137
Unamortized debt discount		(176,376	)		(234,765)
On June 30, 2012, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, the notes dated before July 1, 2011, and all salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $3.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $209,809. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense. The beneficial conversion feature is valued under the intrinsic value method.   On January 18, 2013, the Company made a $3,990 cash payment to reduce the note balance.   On October 19, 2016, the Company settled $21,716 of the outstanding balance through the issuance of a new note.   On July 1, 2017, the Company renewed the outstanding notes. Under the terms of the agreements, the due date of the notes were extended to July 1, 2022. The promissory notes are unsecured, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the modified terms of the notes to be $198,859. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $10,067 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		299,316			299,316
Unamortized debt discount		(129,494	)		(139,561)
On December 30 and 31, 2012, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $182,083 of related party notes accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $182,083 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		182,083			182,083
Unamortized debt discount		—			—
On June 30, 2013, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $106,153 of accrued interest and salaries were converted to promissory notes convertible into common stock with a warrant feature. The $106,153 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $70,768. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		106,152			106,152
Unamortized debt discount		—			—
On December 31, 2013, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $142,501 of accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $142,501 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		142,501			142,501
Unamortized debt discount		—			—
On June 30, 2014, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $118,126 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $118,126 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.25 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $118,126. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $5,823 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		118,126			118,126
Unamortized debt discount		(5,887	)		(11,710)
On December 31, 2014, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $40,558 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $40,558 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $40,466. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $1,994 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		40,558			40,558
Unamortized debt discount		(4,056	)		(6,050)
On December 31, 2014, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $65,295 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $65,295 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $57,439. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $2,831 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		65,295			65,295
Unamortized debt discount		(8,655	)		(11,486)
On December 31, 2015, the Company re-negotiated accrued salaries and interest for six employees and a director. Under the terms of the agreements, $343,687 of accrued salaries and director fees not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $343,687 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $341,703. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $16,222 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $14,400 of debt and the associated interest of $3,118 was converted into common stock at a price of $1.80 per share.		329,287			329,287
Unamortized debt discount		(115,532	)		(131,754)
On June 30, 2016, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $192,417 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $192,417 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $28,365. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $1,352 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $3,600 of debt and the associated interest of $779 was converted into common stock at a price of $1.80 per share.		188,817			188,817
Unamortized debt discount		(12,350	)		(13,702)
On October 19, 2016, the Company re-negotiated two notes with an employee of the Company. Under the terms of the agreements, $111,056 of convertible promissory notes due on December 31, 2016 and June 30, 2017 were converted to promissory notes convertible into common stock with a warrant feature. The $111,056 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $42,924. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $2,115 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		111,056			111,056
Unamortized debt discount		(21,930	)		(24,044)
On December 30, 2016, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $186,375 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $186,375 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $186,375. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $9,008 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $3,600 of debt and the associated interest of $779 was converted into common stock at a price of $1.80 per share.		182,775			182,775
Unamortized debt discount		(100,597	)		(109,605)
On July 1, 2017, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $178,439 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $178,439 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $118,800. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $5,855 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		178,439			178,439
Unamortized debt discount		(77,292	)		(83,147)
	$	2,036,374		$	1,922,718

F-12

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

12. STOCKHOLDERS’ DEFICIT

The Company is authorized to issue 200,000,000 shares of $0.001 par value common stock. The Company had 2,896,689 and 2,896,689 issued and outstanding shares of common stock as of March 31, 2019 and December 31, 2018, respectively.

During the year ending December 31, 2018, the Company executed agreements with 45 noteholders that participated in the Company’s debt offerings between May 22, 2013 and December 31, 2015. In accordance with the agreements the Company and the investors agreed to settle a total of $2,623,875 in outstanding principal and $604,736 in accrued interest in exchange for the issuance of 1,614,305 shares. The Company fair valued the shares issuable on the date each investors signed their respective agreement, as of the March 31, 2019 the Company had not yet issued the shares to the investors, as a result of the transaction and has recorded stock payable of $2,053,466.

13. COMMITMENTS AND CONTINGENCIES

Lease obligations – The Company has operating leases for its offices. Future minimum lease payments under the operating leases for the facilities as of December 31, 2018, are as follows:

2019	$	37,517
2020	$	12,863

Rental expense, resulting from operating lease agreements, approximated $14,037 and $13,381 for the three months ended March 31, 2019 and March 31, 2018, respectively.

Kintari Inc. - Previously on April 1, 2016, Skinvisible licensed to Kintari Int. Inc. the exclusive rights to our existing line of cosmeceutical products plus the exclusive rights to any future cosmeceutical products developed by Skinvisible plus the right-of-first-refusal on our existing OTC products plus the right-of-first-refusal to any future OTC products developed by us in exchange for a 100% equity position in Kintari Int. Inc. This inter-company agreement has now been dissolved and all rights still remain with Skinvisible Pharmaceuticals, Inc., as the original intent was for Kintari to operate as its own company; however, this did not transpire. There is no change to the ownership as Skinvisible continues to own 100% of Kintari Int. Inc. and all rights thereof. Kintari USA Inc. continues to sell Kintari branded products through online sales.

14.    MERGER AGREEMENT

On March 26, 2018, Skinvisible, Inc. (“Parent”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Quoin Pharmaceuticals, Inc., a Delaware corporation (the “Quoin”), and Quoin Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”).

The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Quoin (the “Merger”), with Quoin surviving the Merger as a wholly-owned subsidiary of Parent. At the effective time of the Merger, the issued and outstanding common shares of Quoin (“Company Common Shares”) will automatically be converted into the right to receive approximately 72.5% of the outstanding equity of Parent (the “Merger Consideration”). Existing Parent shareholders will have a right to the remaining 27.5% of the outstanding equity of Parent, which is subject to diminution if certain indebtedness of Parent is not converted into Parent Common Stock.

Each of Quoin, Parent, and Merger Sub has made various representations and warranties and agreed to certain covenants in the Merger Agreement. Parent also has agreed to other covenants in the Merger Agreement, including, without limitation, to cause a special meeting of Parent’s shareholders to be held as promptly as practicable to consider and approve the Merger Agreement and the Merger, along with the issuance of the shares of Parent Common Stock in connection with the Merger and a Charter Amendment, including a name change and reverse stock split, and to file a proxy statement with the Securities and Exchange Commission (“SEC”) relating to such special meeting.

The Merger Agreement contains customary no-solicitation covenants restricting Parent and Quoin from soliciting, encouraging, or discussing alternative acquisition proposals from third parties.

Consummation of the Merger is subject to the satisfaction or, if permitted by applicable law, waiver, by Parent, Quoin, or both of various conditions, including, without limitation, (i) approval of the Merger Agreement and the Merger by both the Quoin’s and Parent’s respective shareholders; (ii) a definitive agreement shall have been executed that provides that Parent shall receive an aggregate of at least $10,000,000 of gross proceeds within five (5) days of the closing of the Merger; (iii) the accuracy of the parties’ respective representations and warranties and the performance of their respective obligations under the Merger Agreement; (iv) the absence of the occurrence of a material adverse effect with respect to Quoin between the date of the Merger Agreement and closing; (v) the Parent’s shareholders shall have approved the Charter Amendment ; (vi) the absence of any law, order, or legal injunction which prohibits the consummation of the Merger or any of the transactions contemplated by the Merger Agreement; and (vii) certain other customary conditions.

F-13

SKINVISIBLE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(UNAUDITED)

The Merger Agreement contains certain termination rights in favor of the parties, as set forth therein, including, among other things, the right of either party, subject to specified limitations, to terminate the Merger Agreement if the Merger is not consummated by June 30, 2018. As of the date of this filing the termination rights have not been exercised by either party. Upon the termination of the Merger Agreement under specified circumstances, including the termination of the Merger Agreement by Parent to enter into an acquisition proposal in accordance with the terms of the Merger Agreement made by a third party, Parent may be required to pay the Company a termination fee of up to $300,000.

The Merger Agreement, the Merger, and the transactions contemplated thereby were unanimously approved by the board of directors of the Parent, and unanimously approved by the board of directors of the Company and by a majority of the shareholders of the parent.

The Merger is expected to close as soon as practicable after the satisfaction or waiver of all the conditions to the closing in the Merger Agreement, which is currently expected to be in the second quarter of calendar year 2019.

Support Agreements

Concurrently with the entry into the Merger Agreement on March 26, 2018, Terry Howlett (Chief Executive Officer of Parent) and Doreen McMorran (Vice President, Business Development & Marketing of Parent) along with Michael Meyers (Chief Executive Officer of the Company) and Denise Carter (Chief Operating Officer of the Company) have executed lock-up agreements (the “Lock-Up Agreements”) relating to sales and certain other dispositions of shares of Parent Common Stock or certain other securities for a period of 180 days after the Closing of the Merger.

In addition, Parent will execute an agreement with Mr. Howlett, Ms. McMorran and Dr. Roszell (the “Parent Related Party Agreement”) which will provide that within 180 days after the Closing Date the remaining Parent Related Party Indebtedness shall be converted, at the sole election of Parent, into cash or shares of Parent Common Stock which are not subject to any contractual restrictions or vesting requirements.

15.    SUBSEQUENT EVENTS

In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to March 31, 2019 to the date these financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements.  

F-14

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

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.   These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions.  We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions.  Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Recent Developments

Merger with Quoin Pharmaceuticals, Inc.

On March 26, 2018, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Quoin Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Quoin Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”).

The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of our company. At the effective time of the Merger, the issued and outstanding common shares of the Company will automatically be converted into the right to receive approximately 72.5% of the outstanding equity of our company (the “Merger Consideration”). Our existing shareholders will have a right to the remaining 27.5% of the outstanding equity in our company, which is subject to diminution if certain indebtedness is not converted into our common stock.

We also have agreed to other covenants in the Merger Agreement, including, without limitation, to cause a special meeting of our shareholders to be held as promptly as practicable to consider and approve the Merger Agreement and the Merger, along with the issuance of the Merger Consideration in connection with the Merger and a Charter Amendment, including a name change and reverse stock split, and to file a proxy statement with the Securities and Exchange Commission (“SEC”) relating to such special meeting. We have set the meeting date for November 26, 2018.

As such, we recently filed a proxy statement with the SEC to approve the Merger, to conduct a reverse split of not less than one-for-ten and not more than one-for-one hundred, with the exact ratio to be set at a whole number within this range, as determined by our board of directors in its sole discretion, and to change our name to Quoin Pharmaceuticals, Inc.

Consummation of the Merger is subject to the satisfaction or, if permitted by applicable law, waiver, by us, the Company, or both of various conditions, including, without limitation, (i) approval of the Merger Agreement and the Merger by both the Company’s and our respective shareholders; (ii) a definitive agreement shall have been executed that provides that we shall

4

receive an aggregate of at least $10,000,000 of gross proceeds within five (5) days of the closing of the Merger; (iii) the accuracy of the parties’ respective representations and warranties and the performance of their respective obligations under the Merger Agreement; (iv) the absence of the occurrence of a material adverse effect with respect to the Company between the date of the Merger Agreement and closing; (v) our shareholders shall have approved the reverse split and name change ; (vi) the absence of any law, order, or legal injunction which prohibits the consummation of the Merger or any of the transactions contemplated by the Merger Agreement; and (vii) certain other customary conditions.

The Merger Agreement, as amended, contains certain termination rights in favor of the parties, as set forth therein, including, among other things, the right of either party, subject to specified limitations, to terminate the Merger Agreement if the Merger is not consummated by June 30, 2018. Upon the termination of the Merger Agreement under specified circumstances, including the termination of the Merger Agreement by Parent to enter into an acquisition proposal in accordance with the terms of the Merger Agreement made by a third party, Parent may be required to pay the Company a termination fee of up to $300,000.

The Merger Agreement, the Merger, and the transactions contemplated thereby were unanimously approved by our board of directors and unanimously approved by the board of directors of the Company. Both the board of directors of the Company and our company have recommended that their respective shareholders approve the Merger Agreement and the Merger. The Merger is expected to close as soon as practicable after the satisfaction or waiver of all the conditions to the closing in the Merger Agreement, which is currently expected to be in the second quarter of calendar year 2019.

Support Agreements

Concurrently with the entry into the Merger Agreement on March 26, 2018, Terry Howlett (Chief Executive Officer of Parent) and Doreen McMorran (Vice President, Business Development & Marketing of Parent) along with Michael Meyers (Chief Executive Officer of the Company) and Denise Carter (Chief Operating Officer of the Company) have executed lock-up agreements (the “Lock-Up Agreements”) relating to sales and certain other dispositions of shares of our common stock or certain other securities for a period of 180 days after the Closing of the Merger.

In addition, our wholly owned subsidiary, Skinvisible Pharmaceuticals, Inc., executed agreements with Mr. Howlett, Ms. McMorran and Dr. James A. Roszell (the “Share Transfer Agreements”). The Share Transfer Agreements provide that in exchange for the immediate cancellation of $500,000 of the Parent Related Indebtedness, simultaneously with entry into the Merger Agreement, Skinvisible Pharmaceuticals, Inc. will transfer 100% of the shares in Ovation Science Inc. (“Ovation”) to these related parties. We will execute an agreement with Mr. Howlett, Ms. McMorran and Dr. Roszell (the “Parent Related Party Agreement”) which will provide that within 180 days after the Closing Date the remaining Parent Related Party Indebtedness shall be converted, at the sole election of our company, into cash or shares of our common stock, which are not subject to any contractual restrictions or vesting requirements.

Finally, Mr. Howlett and Ms. McMorran have entered into a Voting and Support Agreement (the “Voting Agreement”), pursuant to which such shareholders have agreed, among other things, to vote all of their common shares in our company in favor of the approval of the Merger Agreement at the special meeting of our shareholders called to approve the Merger Agreement. The Voting Agreement will automatically terminate upon the termination of the Merger Agreement in accordance with its terms, including upon a termination of the Merger Agreement by the Company pursuant to the Company’s termination rights in the Merger Agreement, or upon any material modification or amendment to the Merger Agreement that materially reduces the Merger Consideration payable to the Company’s shareholders (other than in connection with a Company material adverse effect).

Company Overview

We, through our wholly owned subsidiary Skinvisible Pharmaceuticals Inc., are a pharmaceutical research and development (“R&D”) company that has developed and patented an innovative polymer delivery system, Invisicare® and formulated over forty topical skin products, which we out-license globally. We were incorporated in 1998, and target an estimated $80 billion global skincare and dermatology market and a $30 billion global over-the-counter market as well as other healthcare / medical and consumer goods markets.

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With the research and development complete on forty products and numerous patents issued (technology and product patents), we are ready to monetize our investment. Our business model will continue to be to out-license our patented prescription and over-the-counter (“OTC”) products featuring Invisicare to established manufacturers and marketers of brands internationally and to maximize profits from the products we have already out-licensed. We have also formed a commercial subsidiary, Kintari Int. Inc. with subsidiaries Kintari USA Inc. and Kintari Canada Inc., in order to take our cosmeceutical and select OTC products with Invisicare to market.

The opportunity for us to license our products continues to be a viable model as the need for pharmaceutical companies to access external R&D companies for new products due to their own down-sizing or elimination of internal R&D departments. The demand for our products is enhanced due to the granting of key US and international patents and the completed development of a number of unique products.

Strategic Growth Opportunities

Our growth strategy is to:

1. Generate revenue from direct sales of our cosmeceutical/OTC product line;

2. Generate revenue from online sales and private label / bulk orders of our Kintari branded products;

3. Capitalize on the success of current licensees;

4. Increase the value of our current pipeline; and

5. Boost licensing revenues by securing additional licensees globally and develop a robust royalty revenue stream that will finance our future growth.

Our Cosmeceutical/OTC Product Line

Kintari Int. Inc.

Kintari Int. Inc. was incorporated in the Province of Alberta, Canada. The company was formed to develop, market and sell Skinvisible Pharmaceuticals, Inc.’s patented skincare products initially in the United States. Kintari Int. Inc. is our wholly-owned subsidiary.

DermSafe®, our hand sanitizer formulated with Invisicare® and chlorhexidine gluconate has been launched in Canada by our subsidiary Kintari Canada Inc. where it has Health Canada approval. We launched DermSafe in August, 2016 in Canada through our Kintari Canadian website for retail customers only. DermSafe is an alcohol free hand sanitizer that products against 99% of all germs. We are currently seeking licensees and/or distributors to begin the sale of DermSafe in South America and in the EU.

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Kintari Products in China:

Skinvisible has an agreement in place with InterSpace Global, Inc. InterSpace Global Inc. is an exporter of “Made in USA” products and has offices in Salt Lake City, Utah and Shenzhen, China. This agreement provides for an efficient export of Skinvisible’s products from the USA and Canada into Greater China (Includes China, Hong Kong, Macau, Taiwan, Singapore, Malaysia, Korea and Thailand).

According to the agreement, InterSpace Global Inc. will sell Kintari products to Chinese consumers through a network of online shopping malls and other channels.

In addition to DermSafe, Skinvisible will supply its Kintari –branded portfolio of globally patented skincare products made with its Invisicare® delivery technology.

The Kintari product portfolio consists of two anti-aging products to help fight the signs of aging, a broad spectrum sunscreen along with our latest Hand & Body Lotion products. All products are made with our patented Invisicare technology.

Our anti-aging products have been developed using proven anti-aging ingredients with scientific evidence of their effectiveness at reducing the look of fine lines and wrinkles resulting in youthful looking skin. These potent ingredients will be powered by patented Invisicare technology, providing consumers with unique, effective products, which we believe cannot be duplicated.

Our sunscreen is a broad spectrum SPF 30 known as Skinbrella®. We completed independent testing to validate our broad spectrum sunscreen claims according to the labeling guidelines of the FDA, which are designed to help reduce the incidents of skin cancer in the U.S. Our claims are as follows:

• Claim # 1 – Broad-Spectrum: According to the FDA, in order for a sunscreen to be labeled “broad spectrum” it must prove it protects against both UVA and UVB rays by having an SPF (Sun Protection Factor) of at least 15 and a critical wave length of at least 370 nm. Our sunscreen has surpassed both of these criteria, allowing our broad spectrum sunscreen label to also state “prevents sunburn, skin cancer and aging due to the sun.”

• Claim # 2 – Water-Resistant 80 Minutes: The FDA sunscreen water resistant claim requires that a sunscreen must have the same SPF after being in water or sweating for 40 or 80 minutes. Our testing was conducted at an independent laboratory specializing in sunscreen testing. The test involved human subjects that applied sunscreen to their arm, followed by the immersion of the arm into a Jacuzzi for 80 minutes (10 minutes in / 10 minutes out). Our sunscreen successfully completed this testing and is allowed to use “Water-resistant for 80 Minutes” on its sunscreen label, the longest length of time allowed by the FDA.

• Claim # 3 – Unique Patented Technology / Eight-Hour Photostability: As previously announced, we were granted a patent from the United States Patent and Trademark Office entitled “Sunscreen Composition with Enhanced UVA Absorber Stability and Methods”, which provides protection until November 2029. Skinvisible successfully formulated a unique Invisicare® delivery system specifically for stabilizing avobenzone; the key sunscreen used in the USA. Data submitted to the US patent office proved that our sunscreen provides a minimum of eight hours of photostability.

Cannabis Products

On September 15, 2016, we licensed the exclusive world rights to our topical and transdermal cannabis products formulated with Invisicare to CannaSkin, LLC, a cannabis product licensing company with international contacts in the medical marijuana industry. This agreement was canceled on June 28, 2017 and all rights reverted back to Skinvisible.

In September 2017 Skinvisible formed a wholly-owned Canadian subsidiary called Ovation Science Inc. (“Ovation”). Ovation was subsequently granted worldwide rights to Invisicare products formulated with cannabis or hemp seed oil. A license agreement with Canopy Growth Inc. for the Canadian rights was also assigned to Ovation. This was followed by a license agreement with Lighthouse Strategies, LLC for the US rights in dispensaries and the non-exclusive rights outside of dispensaries in the USA. A term of the potential merger agreement with Quoin Pharmaceuticals, Inc. involves Skinvisible Related Parties to assume Skinvisible’s ownership in Ovation in lieu of payment of a portion of outstanding debt.

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Capitalize On Current Licensees:

We have: Avon Products globally and Women’s Choice Pharmaceuticals in the United States.

We continue to work diligently with our licensees to ensure they have a smooth manufacturing process, ongoing R&D support and marketing feedback.

Avon Products, Inc.

Product: We have a long-term contract with Avon globally for over ten years to provide Invisicare polymer for their long-lasting lipsticks.

Sales: Invisicare polymers are purchased directly from Skinvisible.

Women’s Choice Pharmaceuticals

Product: ProCort®, long lasting prescription hemorrhoid cream launched in the United States August 2011.

Sales and Royalties: Skinvisible receives a royalty based on net sales of ProCort. Women’s Choice has been successfully growing their sales of ProCort®

Additional Skinvisible Products

Sunless Tanning Products

We have developed a new sunless tanning mousse / foam which uses a unique foam with Invisicare®, developed specifically for its foaming properties. This adds to Skinvisible’s line of sunless tanning products which includes sunless tanning lotions (light, medium and dark), pre-sun moisturizer and after-sun moisturizer along with sunless tanning spray products for commercial use. The addition of a sunless tanning mousse enhances this line of products.

Sunscreen Products

We have developed 3 broad spectrum sunscreens, with SPF 15, 30 and 50 (the highest SPF allowed by the FDA). All are formulated with Avobenzone, the only UVA sun filter allowed under the US FDA monograph. This UVA/UVB sunscreen was granted a patent from the United States patent office in 2013. Avobenzone is known for breaking down in the sun after only two hours – thus the requirement to reapply every 2 hours. Skinvisible’s patent was granted based on Invisicare's® minimum 8 hour photo stability. For countries outside the United States, Skinvisible has additionally patented UVA/UVB sunscreens formulated with Tinosorb S.

Increasing The Value of Skinvisible’s Pipeline:

We have a pipeline of over forty products which are available for licensing. Testing is conducted in-house generating proof of concept including release of the active ingredient as well as long term shelf life (stability). Additional studies conducted on specific products including skin sensitivity, toxicity and product efficacy are outsourced to FDA compliant laboratories. These studies are critical in attracting potential licensees. Our clinical strategy is to:

• Our clinical strategy is to find a partner for our prescription product portfolio. This would allow for a partner to seek FDA approval using the 505b2 pathway for one or more of our products.
• Expand the availability of our DermSafe® hand sanitizer in China and other countries internationally. A strategy is being developed along with a larger global strategy to bring DermSafe to the EU and Asia.

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Secure Additional Licensees:

We are in discussions and undergoing internal discussions with various pharmaceutical companies for licenses.

To facilitate further expansion, we are seeking an exclusive license with a proven US or global based Pharmaceutical Company for our existing Rx product formulations. The licensee would be expected to pay all costs in getting FDA approval. The licensee would pay Skinvisible for the license in milestone payments as Clinical Phases are proven.

Results of Operations for the Three Months Ended March 31, 2019 and 2018

Revenues

Our revenue from product sales, royalties on patent licenses and license fees (product development fees) for the three months ended March 31, 2019 was $8,367, a decrease from $15,632 for the same period ended March 31, 2018.

The decrease in revenue for the three months ended March 31, 2019 was mainly due to product sales. We hope to achieve increased revenues for the balance of 2018 and into 2019, as a result of our Merger Agreement with Quoin Pharmaceuticals, Inc.

Cost of Revenues

Our cost of revenues for the three months ended March 31, 2019 decreased to $376 from the prior year period when cost of revenues was $7,873.

Our cost of revenues significantly decreased for the three months ended March 31, 2019 over the prior year period because the revenues in 2019 were mainly royalty payments without significant costs associated. We expect our cost of revenues to increase, especially if the Merger is consummated, and as we continue to push sales from Kintari USA and Canada.

Gross Profit

Gross profit for the three months ended March 31, 2019 was $7,991, as compared with gross profit of $7,759 for the three months ended March 31, 2018.

Operating Expenses

Operating expenses decreased to $154,083 for the three months ended March 31, 2019 from $182,325 for the same period ended March 31, 2018.

Our operating expenses for the three months ended March 31, 2019 consisted mainly of accrued salaries and wages of $87,942, audit and accounting of $22,633, rent of $14,037 and depreciation and amortization of $9,651. In comparison, our operating expenses for the three months ended March 31, 2018 consisted mainly of accrued salaries and wages of $86,542, accounting and audit fees of $32,882, rent of $13,381, depreciation and amortization expenses of $9,630 and legal fees of $8,491.

Other Income/Expenses

We had other expenses of $197,007 for the three months ended March 31, 2019, compared with other income of $271,096 for the three months ended March 31, 2018.

Our other expenses for the three months ended March 31, 2019 consisting primarily of $202,007 in interest expense, and our other income for same period ended 2018 was largely the result of $595,127 on the sale of Ovation Sciences Inc., offset mainly by $280,230 in interest expense.

We expect to continue to experience high interest payments in the future as a result of our outstanding liabilities. Moreover, as of the date of this report, there are a number of secured promissory notes with an aggregate principal amount of approximately $838,000 that have matured. In addition, we also have a number of unsecured promissory notes with an aggregate principal amount of $43,000 that have matured. If we are unable to generate sufficient revenues and/or additional financing to service this debt, there is a risk the lenders will call the notes, secure our assets, as to those applicable secured notes, and demand payment. If this happens, we could go out of business.

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Net Income/Net Loss

We recorded a net loss of $343,099 for the three months ended March 31, 2019, as compared with net income of $96,530 for the three months ended March 31, 2018.

Liquidity and Capital Resources

As of March 31, 2019, we had total current assets of $34,291 and total assets in the amount of $204,451. Our total current liabilities as of March 31, 2019 were $5,266,965. We had a working capital deficit of $5,232,674 as of March 31, 2019, compared with a working capital deficit of $7,031,409 as of March 31, 2018.

Operating activities used $45,951 in cash for the three months ended March 31, 2019, as compared with cash provided of $24,639 for the three months ended March 31, 2018. Our negative operating cash flow for the three months ended March 31, 2019 is mainly the result of our net loss for the period, offset by amortization of debt discount and an increase in accrued interest and accounts payable and accrued liabilities.

We used cash of $926 and $0 in investing activities for the three months ended March 31, 2019 and 2018, respectively.

Cash flows used by financing activities during the three months ended March 31, 2019 amounted to $46,400, as compared with cash used of $15,000 for the three months ended March 31, 2019. Our cash flows for the three months ended March 31, 2019 consisted of proceeds from related party loans.

The features of the debt instruments and payables concerning our financing activities are detailed in the footnotes to our financial statements.

Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

Off Balance Sheet Arrangements

As of March 31, 2019, there were no off balance sheet arrangements.

Critical Accounting Policies

In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We have incurred cumulative net losses of $31,893,764 since our inception and require capital for our contemplated operational and marketing activities to take place. Our ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of our contemplated plan of operations, and our transition, ultimately, to the attainment of profitable operations are necessary for us to continue operations. The ability to successfully resolve these factors raise substantial doubt about our ability to continue as a going concern. These consolidated financial statements do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

Product sales – The Company recognizes revenue related to product sales (Invisicare® polymers) when (i) the seller’s price is substantially fixed, (ii) shipment has occurred causing the buyer to be obligated to pay for product, (iii) the buyer has economic substance apart from the seller, and (iv) there is no significant obligation for future performance to directly bring about the resale of the product by the buyer as required by ASC 605 – Revenue Recognition. Cost of sales, rebates and discounts are recorded at the time of revenue recognition or at each financial reporting date.

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Royalty, Distribution and license rights sales - The Company receives revenue from license payments based on net sales from licensees related to the Company’s patented intellectual property. These license agreements are held with third parties that are responsible for remitting payment to the Company based upon a percentage of sales revenues they collect on products that utilize the Company’s patented products. Revenue from licensed products is recognized when realized or realizable based on royalty reporting received from licensees.

Distribution and license rights sales – We also recognize revenue from distribution and license rights only when earned (and are amortized over a five year period), with no further contingencies or material performance obligations are warranted, and thereby have earned the right to receive and retain reasonably assured payments.

Costs of Revenue – Cost of revenue includes raw materials, component parts, and shipping supplies. Shipping and handling costs is not a significant portion of the cost of revenue.

Accounts Receivable – Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of March 31, 2019, the Company had not recorded a reserve for doubtful accounts. The Company has $175,000 in convertible notes payable which are secured by the accounts receivable of a license agreement the Company has with Women's Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®.

Recently Issued Accounting Pronouncements

We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4.     Controls and Procedures

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of March 31, 2019. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2019, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of March 31, 2019, our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

Remediation Plan to Address the Material Weaknesses in Internal Control over Financial Reporting

Our company plans to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending December 31, 2019: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended March 31, 2019 that have materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1.     Legal Proceedings

We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

Item 1A. Risk Factors

See risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2018 filed on April 15, 2019.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3.     Defaults upon Senior Securities

None

Item 4.     Mine Safety Disclosures

Not applicable.

Item 5.     Other Information

None

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Item 6.      Exhibits

Exhibit Number	Description of Exhibit
31.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 formatted in Extensible Business Reporting Language (XBRL).
**Provided herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Skinvisible, Inc.
Date:	May 24, 2019
	By: /s/ Terry Howlett Terry Howlett Title:   Chief Executive Officer, Chief Financial Officer and Director

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EX-31.1

CERTIFICATIONS

EX-31.2

CERTIFICATIONS

I, Terry Howlett, certify that;

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2019 of Skinvisible, Inc. (the “registrant”);

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. The registrant’s other certifying officer and I are 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; and

5. The registrant’s other certifying officer and I have disclosed, based on our 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: May 24, 2019

/s/ Terry Howlett

By: Terry Howlett

Title: Chief Financial Officer

EX-32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND

CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly Report of Skinvisible, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2019 filed with the Securities and Exchange Commission (the “Report”), I, Terry Howlett, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated result of operations of the Company for the periods presented.

By:	/s/ Terry Howlett
Name:	Terry Howlett
Title:	Principal Executive Officer, Principal Financial Officer and Director
Date:	May 24, 2019

This certification has been furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 13, 2019
Document And Entity Information
Entity Registrant Name	SKINVISIBLE INC
Entity Central Index Key	0001085277
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		250,000,000
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

XML

Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash	$ 2,005	$ 2,482
Accounts receivable	5,053	8,459
Inventory	17,088	17,417
Due from related party	1,145	1,145
Prepaid expense and other current assets	9,000	12,000
Total current assets	34,291	41,503
Fixed assets, net of accumulated depreciation of $327,491 and $327,432, respectively	59	118
Intangible and other assets:
Patents and trademarks, net of accumulated amortization of $503,509 and $493,918, respectively	170,101	178,767
Total assets	204,451	220,388
Current liabilities
Accounts payable and accrued liabilities	1,015,900	944,380
Accounts payable related party	22,692	10,490
Accrued interest payable	1,252,599	1,169,293
Loans from related party	86,400	40,000
Loans payable	633,000	633,000
Convertible notes payable, net of unamortized debt discount of $0 and $78, respectively	220,000	219,922
Convertible notes payable related party, net of unamortized discount of $652,169 and $765,825 respectively	2,036,374	1,922,718
Total current liabilities	5,266,965	4,939,803
Total liabilities	5,266,965	4,939,803
Commitments and contingencies
Stockholders' deficit
Common stock; $0.001 par value; 200,000,000 shares authorized; 2,896,689 and 2,896,689 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	$ 2,897	$ 2,897
Shares payable	2,053,466	2,053,466
Additional paid-in capital	$ 24,774,887	$ 24,774,887
Accumulated deficit	(31,893,764)	(31,550,665)
Total stockholders' deficit	(5,062,514)	(4,719,415)
Total liabilities and stockholders' deficit	$ 204,451	$ 220,388

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Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Issued	2,896,689	2,896,689
Common Stock, Outstanding	2,896,689	2,896,689
Accumulated Depreciation	$ 327,491	$ 327,432
Convertible Notes Payable, net of unamortized debt discount	0	78
Convertible Notes Payable, related party, net of unamortized discount	652,169	765,825
Patents and Trademarks Accumulated Amortization	$ 503,509	$ 493,918

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Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenues	$ 8,367	$ 15,632
Cost of revenues	376	7,873
Gross profit	7,991	7,759
Operating expenses
Depreciation and amortization	9,651	9,630
Selling general and administrative	144,432	172,695
Total operating expenses	154,083	182,325
Loss from operations	(146,092)	(174,566)
Other income and (expense)
Other income	5,000	4,807
Interest expense	202,007	280,230
Gain on sale of Ovation Science Inc.		595,127
Loss on equity method investment		(21,810)
Gain (loss) on extinguishment of debt		(26,798)
Total other income (expense)	197,007	271,096
Net income (loss)	$ (343,099)	$ 96,530
Basic and fully diluted loss per common share	$ (0.12)	$ 0.03
Basic weighted average number of common shares outstanding	2,896,689	2,795,785
Diluted weighted average number of common shares outstanding	2,896,689	9,303,924

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Shareholders Equity - USD ($)	Common Stock	Additional Paid-In Capital	Shares Payable	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2017	2,737,281
Beginning balance, amount at Dec. 31, 2017	$ 2,737	$ 24,884,672	$ 61,976	$ (31,709,007)	$ 6,759,622
Shares issued for accounts payable, shares	82,271
Shares issued for accounts payable, amount	$ 82	93,060	47,949		141,091
Loss on modification of debt		(320,756)			(320,756)
Net Income (loss)				96,530	96,530
Ending balance, shares at Mar. 31, 2018	2,819,552
Ending balance, amount at Mar. 31, 2018	$ 2,819	24,656,976	109,925	(31,612,477)	(6,842,757)
Beginning balance, shares at Dec. 31, 2018	2,896,689
Beginning balance, amount at Dec. 31, 2018	$ 2,897	24,774,887	2,053,466	(31,550,665)	(4,719,415)
Net Income (loss)				(343,099)	(343,099)
Ending balance, shares at Mar. 31, 2019	2,896,689
Ending balance, amount at Mar. 31, 2019	$ 2,897	$ 24,774,887	$ 2,053,466	$ (31,893,764)	$ (5,062,514)

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Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net Income (loss)	$ (343,099)	$ 96,530
cash used in operating activities:
Depreciation and amortization	9,651	9,630
Gain on sale of Ovation Science Inc.		(595,127)
Amortization of debt discount	113,734	131,351
Loss on equity method investment		21,810
Imputed interest on Ovation Science loan		4,807
Gain on extinguishment of debt		26,798
Changes in operating assets and liabilities:
Decrease in inventory	329	7,348
Decrease in prepaid assets	3,000	2,500
Decrease in accounts receivable	3,406	206
Increase in accounts payable and accrued liabilities	83,722	93,387
Decrease in due from related party		291
Decrease in promissary note from Ovation Science Inc.		81,052
Increase in accrued interest	83,306	144,056
Net cash provided by (used in) operating activities	(45,951)	24,639
Cash flows from investing activities:
Purchase of fixed and intangible assets	(926)
Net cash used in investing activities	(926)
Cash flows from financing activities:
Proceeds from related party loans	46,400
Payments on related party loans		(10,000)
Payments on notes payable		(5,000)
Net cash provided by (used in) financing activities	46,400	(15,000)
Net change in cash	(477)	9,639
Cash, beginning of period	2,482	23,318
Cash, end of period	2,005	32,957
Supplemental disclosure of cash flow information:
Cash paid for interest	1,192	7,932
Cash paid for tax
Non-cash investing and financing activities:
Common stock issued on extinguishment of debts		$ 74,449

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DESCRIPTION OF BUSINESS AND HISTORY

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

DESCRIPTION OF BUSINESS AND HISTORY

3. SUMMARY OF SIGNIFICANT POLICIES

This summary of significant accounting policies of Skinvisible Inc. is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the consolidated financial statements.

Principles of consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated.

Use of estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, inventory valuation, and the valuations of non-cash capital stock issuances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.

Cash – For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term instruments with original maturities of three months or less to be cash equivalents. There are $2,005 and $2,482 in cash as of March 31, 2019 and December 31, 2018 respectively.

Fair Value of Financial Instruments – The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Revenue recognition – On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. 

We did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated statements of operations for the three months ended March 31, 2019 and 2018 as a result of applying Topic 606.

We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board's (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation.

As of March 31, 2019 and December 31, 2018, the Company had $5,053 and $8,459, respectively, in receivables related to royalty contracts.

The company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by the company from its customers (sales and use taxes, value added taxes, some excise taxes).

Accounts Receivable – Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of March 31, 2019, the Company had not recorded a reserve for doubtful accounts.

Inventory – Substantially all inventory consists of finished goods and are valued based upon first-in first-out ("FIFO") cost, not in excess of market. The determination of whether the carrying amount of inventory requires a write-down is based on an evaluation of inventory.

Goodwill and intangible assets – The Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “Intangibles – Goodwill and Other”. According to this statement, goodwill and intangible assets with indefinite lives are no longer subject to amortization, but rather an annual assessment of impairment by applying a fair-value based test. Fair value for goodwill is based on discounted cash flows, market multiples and/or appraised values as appropriate. Under ASC 350-10, the carrying value of assets are calculated at the lowest level for which there are identifiable cash flows.

Income taxes – The Company accounts for its income taxes in accordance with FASB Codification Topic ASC 740-10, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Stock-based compensation – The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an Employee Stock Purchase Plan based on the estimated fair values.

Stock based compensation expense recognized under ASC 718-10 for the three months ended March 31, 2019 and March 31, 2018 totaled $0 and $0, respectively.

Earnings (loss) per share – The Company reports earnings (loss) per share in accordance with FASB Codification Topic ASC 260-10 “Earnings Per Share”, Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There are 7,506,688 additional shares issuable in connection with outstanding options, warrants, stock payable and convertible debts would be considered dilutive as of March 31, 2019. Diluted earnings (loss) per share has not been presented for the three months ending March 31, 2019, since the effect of the assumed exercise of options and warrants to purchase common shares (common stock equivalents) would have an anti-dilutive effect.

Recently issued accounting pronouncements – In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which modifies the accounting for share-based payment awards issued to nonemployees to largely align it with the accounting for share-based payment awards issued to employees. ASU 2018-07 is effective for us for annual periods beginning January 1, 2019. The adoption of the standard had no impact on our financial position or results of operations for the three months ending March 31, 2018 and 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASC 842”). The guidance requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC 842 is effective for fiscal years beginning after December 15, 2018.

We adopted ASC 842 effective January 1, 2019 using the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, comparative financial information was not adjusted and continues to be reported under the prior lease accounting guidance in ASC 840. We elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less.

The Company has evaluated all other recent accounting pronouncements, and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows.

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BASIS OF PERESENTATION AND GOING CONCERN

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND GOING CONCERN

2. BASIS OF PRESENTATION AND GOING CONCERN

Basis of presentation – The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K filed with the SEC on April 15, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principals in the U.S. for complete financial statements.

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $31,893,764 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company plans to seek additional debt and equity funding but the Company’s ability to raise additional capital through the future issuances of common stock or debt is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT POLICIES

3. SUMMARY OF SIGNIFICANT POLICIES

This summary of significant accounting policies of Skinvisible Inc. is presented to assist in understanding the Company’s consolidated financial statements. The consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the consolidated financial statements.

Principles of consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated.

Use of estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, inventory valuation, and the valuations of non-cash capital stock issuances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.

Cash – For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term instruments with original maturities of three months or less to be cash equivalents. There are $2,005 and $2,482 in cash as of March 31, 2019 and December 31, 2018 respectively.

Fair Value of Financial Instruments – The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Revenue recognition – On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. 

We did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated statements of operations for the three months ended March 31, 2019 and 2018 as a result of applying Topic 606.

We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board's (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation.

As of March 31, 2019 and December 31, 2018, the Company had $5,053 and $8,459, respectively, in receivables related to royalty contracts.

The company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by the company from its customers (sales and use taxes, value added taxes, some excise taxes).

Accounts Receivable – Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of March 31, 2019, the Company had not recorded a reserve for doubtful accounts.

Inventory – Substantially all inventory consists of finished goods and are valued based upon first-in first-out ("FIFO") cost, not in excess of market. The determination of whether the carrying amount of inventory requires a write-down is based on an evaluation of inventory.

Goodwill and intangible assets – The Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “Intangibles – Goodwill and Other”. According to this statement, goodwill and intangible assets with indefinite lives are no longer subject to amortization, but rather an annual assessment of impairment by applying a fair-value based test. Fair value for goodwill is based on discounted cash flows, market multiples and/or appraised values as appropriate. Under ASC 350-10, the carrying value of assets are calculated at the lowest level for which there are identifiable cash flows.

Income taxes – The Company accounts for its income taxes in accordance with FASB Codification Topic ASC 740-10, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Stock-based compensation – The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an Employee Stock Purchase Plan based on the estimated fair values.

Stock based compensation expense recognized under ASC 718-10 for the three months ended March 31, 2019 and March 31, 2018 totaled $0 and $0, respectively.

Earnings (loss) per share – The Company reports earnings (loss) per share in accordance with FASB Codification Topic ASC 260-10 “Earnings Per Share”, Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There are 7,506,688 additional shares issuable in connection with outstanding options, warrants, stock payable and convertible debts would be considered dilutive as of March 31, 2019. Diluted earnings (loss) per share has not been presented for the three months ending March 31, 2019, since the effect of the assumed exercise of options and warrants to purchase common shares (common stock equivalents) would have an anti-dilutive effect.

Recently issued accounting pronouncements – In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which modifies the accounting for share-based payment awards issued to nonemployees to largely align it with the accounting for share-based payment awards issued to employees. ASU 2018-07 is effective for us for annual periods beginning January 1, 2019. The adoption of the standard had no impact on our financial position or results of operations for the three months ending March 31, 2018 and 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASC 842”). The guidance requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC 842 is effective for fiscal years beginning after December 15, 2018.

We adopted ASC 842 effective January 1, 2019 using the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, comparative financial information was not adjusted and continues to be reported under the prior lease accounting guidance in ASC 840. We elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less.

The Company has evaluated all other recent accounting pronouncements, and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows.

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FIXED ASSETS

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

FIXED ASSETS

Fixed assets consist of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019			December 31, 2018
		(Unaudited)
Machinery and equipment	$	48,163		$	48,163
Furniture and fixtures		113,635			113,635
Computers, equipment and software		39,722			39,722
Leasehold improvements		12,569			12,569
Lab equipment		113,461			113,461
Total		327,550			327,550
Less: accumulated depreciation		(327,491	)		(327,432)
Fixed assets, net of accumulated depreciation	$	59		$	118

Depreciation expense for the three months ended March 31, 2019 and March 31, 2018 was $59 and $64, respectively.

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INVENTORY

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

INVENTORY

Inventory consist of the following as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
		(Unaudited)
Shipping and Packing materials	$	8,599	$	8,611
Finished Goods		2,370		2,687
Raw Materials		6,119		6,119
Total	$	17,088	$	17,417

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INTANGIBLE AND OTHER ASSETS

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

INTANGIBLE AND OTHER ASSETS

Patents and trademarks and other intangible assets are capitalized at their historical cost and are amortized over their estimated useful lives. As of March 31, 2019, intangible assets total $673,610, net of $503,509 of accumulated amortization.

Amortization expense for the three months ended March 31, 2019 and March 31, 2018 was $9,592 and $9,566, respectively.

License and distributor rights (“agreement”) were acquired by the Company in January 1999 and provide exclusive use distribution of polymers and polymer based products. The Company has a non-expiring term on the license and distribution rights. Accordingly, the Company annually assesses this license and distribution rights for impairment and has determined that no impairment write-down is considered necessary as of March 31, 2019.

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STOCK OPTIONS AND WARRANTS

3 Months Ended

Mar. 31, 2019

Temporary Equity Disclosure [Abstract]

STOCK OPTIONS AND WARRANTS

The following is a summary of option activity during the three months ended March 31, 2019.

	Number of Shares			Weighted Average Exercise Price
Balance, December 31, 2018		161,000		$	1.80
Options granted and assumed		—			—
Options expired		(26,000	)		2.00-
Options canceled		—			—
Options exercised		—			—
Balance, March 31, 2019		135,000		$	1.76

As of March 31, 2019, all stock options outstanding are exercisable.

Stock warrants -

The following is a summary of warrants activity during the three months ended March 31, 2019.

	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2018		72,200	$	1.18
Warrants granted and assumed		—		—
Warrants expired		—		—
Warrants canceled		—		—
Warrants exercised		—		—
Balance, March 31, 2019		72,200	$	1.18

As of March 31, 2019, all stock warrants outstanding are exercisable.

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NOTES PAYABLE

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

NOTES PAYABLE

On May 22, 2013, the Company approved a financing plan to offer accredited investors up to $1,000,000 in secured promissory notes. During the year ended December 31, 2013, the Company entered into twenty-four 9% notes payable to investors and received total proceeds of $1,000,000. The notes are due two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods.” During the year ending December 31, 2018 the Company made principal payments of $5,000.

On May 19, 2014, the Company approved a financing plan to offer accredited investors up to an additional $1,000,000 in secured promissory notes. During the period from May 19, 2014 to March 31, 2015 the Company entered into twenty-seven 9% notes payable to investors and received total proceeds of $1,000,000. The notes were due two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods." $1,000,000 in notes have reached their maturity date.

During the period from April 1, 2015 and September 30, 2015, the Company entered into thirteen additional 9% notes payable to investors and received total proceeds of $326,000. The notes were due two years from the anniversary date of execution. The Notes are secured by the US Patent rights granted for the Company's Sunscreen Products: US patent number #8,128,913: "Sunscreen Composition with Enhanced UV-A Absorber Stability and Methods".

During the year ending December 31, 2018, the Company executed agreements with 41 noteholders that participated in the Company’s debt offerings between May 22, 2013 and September 30, 2015. In accordance with the agreements the Company and the investors agreed to settle a total of $1,663,875 in outstanding principal and $385,563 in accrued interest in exchange for the issuance of 1,024,719 shares of the Company’s common stock. The Company fair valued the shares issuable on the date each investors signed their respective agreement. As of the March 31, 2019, the Company had not yet issued the shares to the investors and has recorded stock payable of $874,294 as a result of the transaction on the accompanying Balance Sheet.

On January 27, 2016, the Company entered into a 12% unsecured note payable to an investor and received total proceeds of $33,000. The note was due on May 30, 2016. As of March 31, 2019 and December 31, 2018, the note is in default as no payments had been made towards the principal balance.

As of March 31, 2019, $633,000 of the outstanding notes payable were due in less than 12 months and have been classified as current notes payable.

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

During the three months ended March 31, 2019, $46,400 was advanced by an officer.

As of March 31, 2019, $86,400 in advances remained due to officers of the company, all other related party notes have been extinguished or re-negotiated as convertible notes. (See note 12 for additional details.)

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CONVERTIBLE NOTES PAYABLE

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

CONVERTIBLE NOTES PAYABLE

10. CONVERTIBLE NOTES PAYABLE

Convertible Notes Payable at consists of the following:	March 31,		December 31,
	2019		2018
$1,000,000 face value 9% secured notes payable to investors, due in 2015. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The notes have reach maturity and are now in default, under the notes default provisions the entire balance is now due upon demand. During the year ending December 31, 2018, the Company executed agreements with 14 noteholders that participated in the Company’s convertible debt offering. In accordance with the agreements the Company and the investors agreed to settle a total of $960,000 in outstanding principal and $219,172 in accrued interest in exchange for the issuance of 589,586 shares of the Company’s common stock. As of the March 31, 2019 the Company had not yet issued the shares to the investors The company treated the loan modification as a debt repurchase and as a result of the transaction has recorded stock payable of $1,179,172 on the accompanying balance sheet.		40,000		40,000
Original issue discount		—		—
Unamortized debt discount		—		—
Total, net of unamortized discount		40,000		40,000
On October 26, 2015 the Company issued a $135,000 face value 9% unsecured notes payable to investors, due October 26, 2017. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®.		135,000		135,000
Unamortized debt discount		—		—
Total, net of unamortized discount		135,000		135,000
On February 17, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $20,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on February 17, 2018. The note is convertible at any time following 90 days after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 90% of the average five day market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The holder’s ability to convert the note, however, is limited in that it will not be permitted to convert any portion of the note if the number of shares of our common stock beneficially owned by the holder and its affiliates, together with the number of shares of our common stock issuable upon any full or partial conversion, would exceed 4.99% of the Company’s outstanding shares of common stock.		20,000		20,000
Unamortized debt discount		—		—
Total, net of unamortized discount		20,000		20,000
On August 11, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $15,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on August 11, 2018. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note.		15,000		15,000
Unamortized debt discount		—		—
Total, net of unamortized discount		15,000		15,000
On January 27, 2017, the Company entered into a convertible promissory note pursuant to which it borrowed $10,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on January 27, 2019. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The Company has determined the value associated with the beneficial conversion feature in connection with the notes negotiated on January 27, 2017 to be $2,138. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $78 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method		10,000		10,000
Unamortized debt discount		—		(78)
Total, net of unamortized discount		10,000		9,922
	$	220,000	$	219,922

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CONVERTIBLE NOTES PAYABLE RELATED PARTY

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

CONVERTIBLE NOTES PAYABLE RELATED PARTY

11. CONVERTIBLE NOTES PAYABLE RELATED PARTY

Convertible Notes Payable Related Party at consists of the following:	March 31,			December 31,
	2019			2018
On October 20, 2016, the Company re-negotiated $982,253 of the unsecured notes payable. Under the modified terms the $982,253 face value notes maturity date was extended until December 31, 2019 and adjusted to the current market prices. At the investor’s option until the repayment date, the note can be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. In accordance with ASC 470, the Company has determined the value associated with the beneficial conversion feature in connection with the re-negotiated notes on October 20, 2016 to be $982,253. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $58,389 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 28, 2018, $238,115 of the notes were settled as part of the purchase of Ovation Science Inc.		744,137			744,137
Unamortized debt discount		(176,376	)		(234,765)
On June 30, 2012, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, the notes dated before July 1, 2011, and all salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $3.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $209,809. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense. The beneficial conversion feature is valued under the intrinsic value method.   On January 18, 2013, the Company made a $3,990 cash payment to reduce the note balance.   On October 19, 2016, the Company settled $21,716 of the outstanding balance through the issuance of a new note.   On July 1, 2017, the Company renewed the outstanding notes. Under the terms of the agreements, the due date of the notes were extended to July 1, 2022. The promissory notes are unsecured, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the modified terms of the notes to be $198,859. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $10,067 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		299,316			299,316
Unamortized debt discount		(129,494	)		(139,561)
On December 30 and 31, 2012, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $182,083 of related party notes accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $182,083 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		182,083			182,083
Unamortized debt discount		—			—
On June 30, 2013, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $106,153 of accrued interest and salaries were converted to promissory notes convertible into common stock with a warrant feature. The $106,153 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $70,768. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		106,152			106,152
Unamortized debt discount		—			—
On December 31, 2013, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $142,501 of accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $142,501 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		142,501			142,501
Unamortized debt discount		—			—
On June 30, 2014, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $118,126 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $118,126 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.25 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $118,126. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $5,823 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		118,126			118,126
Unamortized debt discount		(5,887	)		(11,710)
On December 31, 2014, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $40,558 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $40,558 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $40,466. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $1,994 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		40,558			40,558
Unamortized debt discount		(4,056	)		(6,050)
On December 31, 2014, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $65,295 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $65,295 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $57,439. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $2,831 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		65,295			65,295
Unamortized debt discount		(8,655	)		(11,486)
On December 31, 2015, the Company re-negotiated accrued salaries and interest for six employees and a director. Under the terms of the agreements, $343,687 of accrued salaries and director fees not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $343,687 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $341,703. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $16,222 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $14,400 of debt and the associated interest of $3,118 was converted into common stock at a price of $1.80 per share.		329,287			329,287
Unamortized debt discount		(115,532	)		(131,754)
On June 30, 2016, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $192,417 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $192,417 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $28,365. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $1,352 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $3,600 of debt and the associated interest of $779 was converted into common stock at a price of $1.80 per share.		188,817			188,817
Unamortized debt discount		(12,350	)		(13,702)
On October 19, 2016, the Company re-negotiated two notes with an employee of the Company. Under the terms of the agreements, $111,056 of convertible promissory notes due on December 31, 2016 and June 30, 2017 were converted to promissory notes convertible into common stock with a warrant feature. The $111,056 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $42,924. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $2,115 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		111,056			111,056
Unamortized debt discount		(21,930	)		(24,044)
On December 30, 2016, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $186,375 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $186,375 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $186,375. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $9,008 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $3,600 of debt and the associated interest of $779 was converted into common stock at a price of $1.80 per share.		182,775			182,775
Unamortized debt discount		(100,597	)		(109,605)
On July 1, 2017, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $178,439 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $178,439 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $118,800. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $5,855 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		178,439			178,439
Unamortized debt discount		(77,292	)		(83,147)
	$	2,036,374		$	1,922,718

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STOCKHOLDERS DEFICIT

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

STOCKHOLDERS DEFICIT

The Company is authorized to issue 200,000,000 shares of $0.001 par value common stock. The Company had 2,819,552 and 2,819,552 issued and outstanding shares of common stock as of March 31, 2019 and December 31, 2018, respectively.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Lease obligations – The Company has operating leases for its offices. Future minimum lease payments under the operating leases for the facilities as of December 31, 2018, are as follows:

2019	$	37,517
2020	$	12,863

Rental expense, resulting from operating lease agreements, approximated $14,037 and $13,381 for the three months ended March 31, 2019 and March 31, 2018, respectively.

Kintari Inc. - Previously on April 1, 2016, Skinvisible licensed to Kintari Int. Inc. the exclusive rights to our existing line of cosmeceutical products plus the exclusive rights to any future cosmeceutical products developed by Skinvisible plus the right-of-first-refusal on our existing OTC products plus the right-of-first-refusal to any future OTC products developed by us in exchange for a 100% equity position in Kintari Int. Inc. This inter-company agreement has now been dissolved and all rights still remain with Skinvisible Pharmaceuticals, Inc., as the original intent was for Kintari to operate as its own company; however, this did not transpire. There is no change to the ownership as Skinvisible continues to own 100% of Kintari Int. Inc. and all rights thereof. Kintari USA Inc. continues to sell Kintari branded products through online sales.

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MERGER AGREEMENT

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

MERGER AGREEMENT

14.    MERGER AGREEMENT

On March 26, 2018, Skinvisible, Inc. (“Parent”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Quoin Pharmaceuticals, Inc., a Delaware corporation (the “Quoin”), and Quoin Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”).

The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into Quoin (the “Merger”), with Quoin surviving the Merger as a wholly-owned subsidiary of Parent. At the effective time of the Merger, the issued and outstanding common shares of Quoin (“Company Common Shares”) will automatically be converted into the right to receive approximately 72.5% of the outstanding equity of Parent (the “Merger Consideration”). Existing Parent shareholders will have a right to the remaining 27.5% of the outstanding equity of Parent, which is subject to diminution if certain indebtedness of Parent is not converted into Parent Common Stock.

Each of Quoin, Parent, and Merger Sub has made various representations and warranties and agreed to certain covenants in the Merger Agreement. Parent also has agreed to other covenants in the Merger Agreement, including, without limitation, to cause a special meeting of Parent’s shareholders to be held as promptly as practicable to consider and approve the Merger Agreement and the Merger, along with the issuance of the shares of Parent Common Stock in connection with the Merger and a Charter Amendment, including a name change and reverse stock split, and to file a proxy statement with the Securities and Exchange Commission (“SEC”) relating to such special meeting.

The Merger Agreement contains customary no-solicitation covenants restricting Parent and Quoin from soliciting, encouraging, or discussing alternative acquisition proposals from third parties.

Consummation of the Merger is subject to the satisfaction or, if permitted by applicable law, waiver, by Parent, Quoin, or both of various conditions, including, without limitation, (i) approval of the Merger Agreement and the Merger by both the Quoin’s and Parent’s respective shareholders; (ii) a definitive agreement shall have been executed that provides that Parent shall receive an aggregate of at least $10,000,000 of gross proceeds within five (5) days of the closing of the Merger; (iii) the accuracy of the parties’ respective representations and warranties and the performance of their respective obligations under the Merger Agreement; (iv) the absence of the occurrence of a material adverse effect with respect to Quoin between the date of the Merger Agreement and closing; (v) the Parent’s shareholders shall have approved the Charter Amendment ; (vi) the absence of any law, order, or legal injunction which prohibits the consummation of the Merger or any of the transactions contemplated by the Merger Agreement; and (vii) certain other customary conditions.

The Merger Agreement contains certain termination rights in favor of the parties, as set forth therein, including, among other things, the right of either party, subject to specified limitations, to terminate the Merger Agreement if the Merger is not consummated by June 30, 2018. As of the date of this filing the termination rights have not been exercised by either party. Upon the termination of the Merger Agreement under specified circumstances, including the termination of the Merger Agreement by Parent to enter into an acquisition proposal in accordance with the terms of the Merger Agreement made by a third party, Parent may be required to pay the Company a termination fee of up to $300,000.

The Merger Agreement, the Merger, and the transactions contemplated thereby were unanimously approved by the board of directors of the Parent, and unanimously approved by the board of directors of the Company and by a majority of the shareholders of the parent.

The Merger is expected to close as soon as practicable after the satisfaction or waiver of all the conditions to the closing in the Merger Agreement, which is currently expected to be in the second quarter of calendar year 2019.

Support Agreements

Concurrently with the entry into the Merger Agreement on March 26, 2018, Terry Howlett (Chief Executive Officer of Parent) and Doreen McMorran (Vice President, Business Development & Marketing of Parent) along with Michael Meyers (Chief Executive Officer of the Company) and Denise Carter (Chief Operating Officer of the Company) have executed lock-up agreements (the “Lock-Up Agreements”) relating to sales and certain other dispositions of shares of Parent Common Stock or certain other securities for a period of 180 days after the Closing of the Merger.

In addition, Parent will execute an agreement with Mr. Howlett, Ms. McMorran and Dr. Roszell (the “Parent Related Party Agreement”) which will provide that within 180 days after the Closing Date the remaining Parent Related Party Indebtedness shall be converted, at the sole election of Parent, into cash or shares of Parent Common Stock which are not subject to any contractual restrictions or vesting requirements.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to December 31, 2018 to the date these financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements.  

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DESCRIPTION OF BUSINESS AND HISTORY (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Description of Business

Description of business – Skinvisible, Inc., (referred to as the “Company”) is focused on the development and manufacture and sales of innovative topical, transdermal and mucosal polymer-based delivery system technologies and formulations incorporating its patent-pending formula/process for combining hydrophilic and hydrophobic polymer emulsions. The technologies and formulations have broad industry applications within the pharmaceutical, over-the-counter, personal skincare and cosmetic arenas. Additionally, the Company’s non-dermatological formulations, offer solutions for a broad spectrum of markets women’s health, pain management, and others. The Company maintains executive and sales offices in Las Vegas, Nevada.

History

History – The Company was incorporated in Nevada on March 6, 1998, under the name of Microbial Solutions, Inc. The Company underwent a name change on February 26, 1999, when it changed its name to Skinvisible, Inc. The Company’s subsidiary’s name of Manloe Labs, Inc. was also changed to Skinvisible Pharmaceuticals, Inc.

On September 9, 2014, the Company formed Kinatri USA Inc., a wholly-owned subsidiary, to market a premium line of scientifically formulated skincare products powered by our patented Invisicare® technology. As part of its strategic focus on revenue generation and creating shareholder value, Kintari USA Inc. products will be sold via network marketing.

The Kintari product portfolio consists of anti-aging products to help fight the signs of aging. These products have been developed using proven anti-aging ingredients with scientific evidence of their effectiveness at reducing the look of fine lines and wrinkles resulting in youthful looking skin. These potent ingredients will be powered by patented Invisicare technology, providing consumers with unique, effective products which the Company believes cannot be duplicated. Additional products will be added to enhance this product line as the Company grows and expands.

On September 26, 2017, the Company purchased 5,750,000 shares of common stock of Ovation Science Inc. (“Ovation”) for $32,286 which at the time of purchase the Company represented 99.9% of the then issued and outstanding common stock. On March 28, 2018 the Company sold its interest in Ovation to officers of the Company for $500,000 which represented a 37.80% interest in Ovation. As of March 31, 2019 Skinvisible Inc. owned 0% of the issued and outstanding Common stock of Ovation.

Skinvisible granted to Ovation, and has assigned its rights under the Canopy Agreement, the exclusive worldwide right to manufacture, distribute, sell, market, sub-license and promote the Products made with cannabis or hemp seed oil including the right to use the subject matter of any Skinvisible product formulation, patents and trademarks which cover the Products or Polymer.

Skinvisible, Inc., together with its subsidiaries, shall herein be collectively referred to as the “Company.”

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BASIS OF PRESENTATION AND GOING CONCERN (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presention

Basis of presentation – The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s most recent Annual Financial Statements filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim period presented have been reflected herein. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Form 10-K, have been omitted.

Going Concern

Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $31,893,764 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Principles of Consolidation

Principles of consolidation – The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated.

Use of Estimates

Use of estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include estimates used to review the Company’s goodwill, impairments and estimations of long-lived assets, revenue recognition on percentage of completion type contracts, allowances for uncollectible accounts, inventory valuation, and the valuations of non-cash capital stock issuances. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable in the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.

Cash

Cash – For purposes of the statement of cash flows, the Company considers all highly liquid investments and short-term instruments with original maturities of three months or less to be cash equivalents. There are $2,005 and $2,482 in cash as of March 31, 2019 and December 31, 2018 respectively.

Fair Value of Financial Instruments

Fair Value of Financial Instruments – The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items.

As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Revenue Recognition

Revenue recognition – On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. 

We did not have a cumulative impact as of January 1, 2018 due to the adoption of Topic 606 and there was not an impact to our consolidated statements of operations for the three months ended March 31, 2019 and 2018 as a result of applying Topic 606.

We recognize revenue in accordance with generally accepted accounting principles as outlined in the Financial Accounting Standard Board's (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue From Contracts with Customers, which requires that five basic criteria be met before revenue can be recognized: (i) identify the contract with the customer; (ii) identity the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price; and (v) recognize revenue when or as the entity satisfied a performance obligation.

As of March 31, 2019 and December 31, 2018, the Company had $5,053 and $8,459, respectively, in receivables related to royalty contracts.

The company has made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are collected by the company from its customers (sales and use taxes, value added taxes, some excise taxes).

Accounts Receivable

Accounts Receivable – Accounts receivable is comprised of uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. The carrying amount of accounts receivable is reviewed periodically for collectability. If management determines that collection is unlikely, an allowance that reflects management’s best estimate of the amounts that will not be collected is recorded. Management reviews each accounts receivable balance that exceeds 30 days from the invoice date and, based on an assessment of creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of March 31, 2019, the Company had not recorded a reserve for doubtful accounts.

Inventory

Inventory – Substantially all inventory consists of finished goods and are valued based upon first-in first-out ("FIFO") cost, not in excess of market. The determination of whether the carrying amount of inventory requires a write-down is based on an evaluation of inventory.

Goodwill and Intangible Assets

Goodwill and intangible assets – The Company follows Financial Accounting Standard Board’s (FASB) Codification Topic 350-10 (“ASC 350-10”), “Intangibles – Goodwill and Other”. According to this statement, goodwill and intangible assets with indefinite lives are no longer subject to amortization, but rather an annual assessment of impairment by applying a fair-value based test. Fair value for goodwill is based on discounted cash flows, market multiples and/or appraised values as appropriate. Under ASC 350-10, the carrying value of assets are calculated at the lowest level for which there are identifiable cash flows.

Income Taxes

Income taxes – The Company accounts for its income taxes in accordance with FASB Codification Topic ASC 740-10, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Stock-based Compensation

Stock-based compensation – The Company follows the guidelines in FASB Codification Topic ASC 718-10 “Compensation-Stock Compensation”, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to an Employee Stock Purchase Plan based on the estimated fair values.

Stock based compensation expense recognized under ASC 718-10 for the three months ended March 31, 2019 and March 31, 2018 totaled $0 and $0, respectively.

Earnings (loss) Per Share

Earnings (loss) per share – The Company reports earnings (loss) per share in accordance with FASB Codification Topic ASC 260-10 “Earnings Per Share”, Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There are 6,067,954 additional shares issuable in connection with outstanding options, warrants, stock payable and convertible debts would be considered dilutive as of March 31, 2019. Diluted earnings (loss) per share has not been presented for the three months ending March 31, 2019, since the effect of the assumed exercise of options and warrants to purchase common shares (common stock equivalents) would have an anti-dilutive effect.

Recently issued accounting Pronouncments

Recently issued accounting pronouncements – In June 2018, the FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting," which modifies the accounting for share-based payment awards issued to nonemployees to largely align it with the accounting for share-based payment awards issued to employees. ASU 2018-07 is effective for us for annual periods beginning January 1, 2019. The adoption of the standard had no impact on our financial position or results of operations for the three months ending March 31, 2018 and 2019.

In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASC 842”). The guidance requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. ASC 842 is effective for fiscal years beginning after December 15, 2018.

We adopted ASC 842 effective January 1, 2019 using the optional transition method of recognizing a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, comparative financial information was not adjusted and continues to be reported under the prior lease accounting guidance in ASC 840. We elected the transition relief package of practical expedients, and as a result, we did not assess 1) whether existing or expired contracts contain embedded leases, 2) lease classification for any existing or expired leases, and 3) whether lease origination costs qualified as initial direct costs. We elected the short-term lease practical expedient by establishing an accounting policy to exclude leases with a term of 12 months or less.

The Company has evaluated all other recent accounting pronouncements, and believes that none of them will have a material effect on the Company's financial position, results of operations or cash flows.

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FIXED ASSETS (Tables)

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Plan Equipment

	March 31, 2019			December 31, 2018
		(Unaudited)
Machinery and equipment	$	48,163		$	48,163
Furniture and fixtures		113,635			113,635
Computers, equipment and software		39,722			39,722
Leasehold improvements		12,569			12,569
Lab equipment		113,461			113,461
Total		327,550			327,550
Less: accumulated depreciation		(327,491	)		(327,432)
Fixed assets, net of accumulated depreciation	$	59		$	118

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INVENTORY (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

	March 31, 2019		December 31, 2018
		(Unaudited)
Shipping and Packing materials	$	8,599	$	8,611
Finished Goods		2,370		2,687
Raw Materials		6,119		6,119
Total	$	17,088	$	17,417

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STOCK OPTIONS AND WARRANTS (Tables)

3 Months Ended

Mar. 31, 2019

Temporary Equity Disclosure [Abstract]

Summary of Options

	Number of Shares			Weighted Average Exercise Price
Balance, December 31, 2018		161,000		$	1.80
Options granted and assumed		—			—
Options expired		(26,000	)		2.00-
Options canceled		—			—
Options exercised		—			—
Balance, March 31, 2019		135,000		$	1.76

Summary of Warrants

	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2018		72,200	$	1.18
Warrants granted and assumed		—		—
Warrants expired		—		—
Warrants canceled		—		—
Warrants exercised		—		—
Balance, March 31, 2019		72,200	$	1.18

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CONVERTIBLE NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Schedule of Conversions of Stock

Convertible Notes Payable at consists of the following:	March 31,		December 31,
	2019		2018
$1,000,000 face value 9% secured notes payable to investors, due in 2015. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®. The notes have reach maturity and are now in default, under the notes default provisions the entire balance is now due upon demand. During the year ending December 31, 2018, the Company executed agreements with 14 noteholders that participated in the Company’s convertible debt offering. In accordance with the agreements the Company and the investors agreed to settle a total of $960,000 in outstanding principal and $219,172 in accrued interest in exchange for the issuance of 589,586 shares of the Company’s common stock. As of the March 31, 2019 the Company had not yet issued the shares to the investors The company treated the loan modification as a debt repurchase and as a result of the transaction has recorded stock payable of $1,179,172 on the accompanying balance sheet.		40,000		40,000
Original issue discount		—		—
Unamortized debt discount		—		—
Total, net of unamortized discount		40,000		40,000
On October 26, 2015 the Company issued a $135,000 face value 9% unsecured notes payable to investors, due October 26, 2017. At the investor’s option until the repayment date, the note and related interest may be converted to shares of the Company’s common stock a discount of 90% of the current share price after the first anniversary of the note. The notes are secured by the accounts receivable of a license agreement the Company has with Womens Choice Pharmaceuticals, LLC on its proprietary prescription product, ProCort®.		135,000		135,000
Unamortized debt discount		—		—
Total, net of unamortized discount		135,000		135,000
On February 17, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $20,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on February 17, 2018. The note is convertible at any time following 90 days after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 90% of the average five day market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The holder’s ability to convert the note, however, is limited in that it will not be permitted to convert any portion of the note if the number of shares of our common stock beneficially owned by the holder and its affiliates, together with the number of shares of our common stock issuable upon any full or partial conversion, would exceed 4.99% of the Company’s outstanding shares of common stock.		20,000		20,000
Unamortized debt discount		—		—
Total, net of unamortized discount		20,000		20,000
On August 11, 2016, the Company entered into a convertible promissory note pursuant to which it borrowed $15,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on August 11, 2018. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note.		15,000		15,000
Unamortized debt discount		—		—
Total, net of unamortized discount		15,000		15,000
On January 27, 2017, the Company entered into a convertible promissory note pursuant to which it borrowed $10,000. Interest under the convertible promissory note is 9% per annum, and the principal and all accrued but unpaid interest is due on January 27, 2019. The note is convertible into shares of our common stock at a variable conversion price of 90% of the average market price of our common stock during the 5 trading days prior to the notice of conversion, subject to adjustment as described in the note. The Company has determined the value associated with the beneficial conversion feature in connection with the notes negotiated on January 27, 2017 to be $2,138. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $78 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method		10,000		10,000
Unamortized debt discount		—		(78)
Total, net of unamortized discount		10,000		9,922
	$	220,000	$	219,922

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CONVERTIBLE NOTES PAYABLE RELATED PARTY (Tables)

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Convertible Notes Payable Related Party Disclosure

Convertible Notes Payable Related Party at consists of the following:	March 31,			December 31,
	2019			2018
On October 20, 2016, the Company re-negotiated $982,253 of the unsecured notes payable. Under the modified terms the $982,253 face value notes maturity date was extended until December 31, 2019 and adjusted to the current market prices. At the investor’s option until the repayment date, the note can be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. In accordance with ASC 470, the Company has determined the value associated with the beneficial conversion feature in connection with the re-negotiated notes on October 20, 2016 to be $982,253. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $58,389 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 28, 2018, $238,115 of the notes were settled as part of the purchase of Ovation Science Inc.		744,137			744,137
Unamortized debt discount		(176,376	)		(234,765)
On June 30, 2012, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, the notes dated before July 1, 2011, and all salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $3.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $209,809. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense. The beneficial conversion feature is valued under the intrinsic value method.   On January 18, 2013, the Company made a $3,990 cash payment to reduce the note balance.   On October 19, 2016, the Company settled $21,716 of the outstanding balance through the issuance of a new note.   On July 1, 2017, the Company renewed the outstanding notes. Under the terms of the agreements, the due date of the notes were extended to July 1, 2022. The promissory notes are unsecured, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the modified terms of the notes to be $198,859. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $10,067 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		299,316			299,316
Unamortized debt discount		(129,494	)		(139,561)
On December 30 and 31, 2012, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $182,083 of related party notes accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $182,083 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		182,083			182,083
Unamortized debt discount		—			—
On June 30, 2013, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $106,153 of accrued interest and salaries were converted to promissory notes convertible into common stock with a warrant feature. The $106,153 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $70,768. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		106,152			106,152
Unamortized debt discount		—			—
On December 31, 2013, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $142,501 of accrued interest and salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $142,501 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.00 per share for six years after the conversion date. As of March 31, 2019 and December 31, 2018, the notes are in default as no payments had been made towards the principal balance.		142,501			142,501
Unamortized debt discount		—			—
On June 30, 2014, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $118,126 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $118,126 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.25 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $118,126. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $5,823 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		118,126			118,126
Unamortized debt discount		(5,887	)		(11,710)
On December 31, 2014, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $40,558 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $40,558 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $40,466. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $1,994 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		40,558			40,558
Unamortized debt discount		(4,056	)		(6,050)
On December 31, 2014, the Company re-negotiated accrued salaries and interest for two employees. Under the terms of the agreements, $65,295 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $65,295 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $2.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $2.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $57,439. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $2,831 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		65,295			65,295
Unamortized debt discount		(8,655	)		(11,486)
On December 31, 2015, the Company re-negotiated accrued salaries and interest for six employees and a director. Under the terms of the agreements, $343,687 of accrued salaries and director fees not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $343,687 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $341,703. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $16,222 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $14,400 of debt and the associated interest of $3,118 was converted into common stock at a price of $1.80 per share.		329,287			329,287
Unamortized debt discount		(115,532	)		(131,754)
On June 30, 2016, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $192,417 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $192,417 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $28,365. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $1,352 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $3,600 of debt and the associated interest of $779 was converted into common stock at a price of $1.80 per share.		188,817			188,817
Unamortized debt discount		(12,350	)		(13,702)
On October 19, 2016, the Company re-negotiated two notes with an employee of the Company. Under the terms of the agreements, $111,056 of convertible promissory notes due on December 31, 2016 and June 30, 2017 were converted to promissory notes convertible into common stock with a warrant feature. The $111,056 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $42,924. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $2,115 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		111,056			111,056
Unamortized debt discount		(21,930	)		(24,044)
On December 30, 2016, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $186,375 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $186,375 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $0.50 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.00 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $186,375. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $9,008 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.   On March 30, 2018, $3,600 of debt and the associated interest of $779 was converted into common stock at a price of $1.80 per share.		182,775			182,775
Unamortized debt discount		(100,597	)		(109,605)
On July 1, 2017, the Company re-negotiated accrued salaries and interest for six employees. Under the terms of the agreements, $178,439 of accrued salaries not previously converted were converted to promissory notes convertible into common stock with a warrant feature. The $178,439 face value promissory notes are unsecured, due five years from issuance, and bear an interest rate of 10%. At the investor’s option until the repayment date, the note may be converted to shares of the Company’s common stock at a fixed price of $1.00 per share along with additional warrants to purchase one share for every two shares issued at the exercise price of $1.50 per share for six years after the conversion date. The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $118,800. The aggregate beneficial conversion feature has been accreted and charged to interest expenses as a financing expense in the amount of $5,855 during the three months ended March 31, 2019. The beneficial conversion feature is valued under the intrinsic value method.		178,439			178,439
Unamortized debt discount		(77,292	)		(83,147)
	$	2,036,374		$	1,922,718

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DESCRIPTION OF BUSINESS AND HISTORY (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 28, 2018	Sep. 26, 2017
Accounting Policies [Abstract]
Date of Incorporation	Mar. 06, 1998
Date of Name Change	Feb. 26, 1999
Date KintariUSA Inc. formed	Sep. 09, 2014
Common Stock Purchased of Ovation Science Inc.			5,750,000
Price paid for Common Stock Purchase			$ 32,286
Percent of Ovation Stock Purchased			9990.00%
Percent Ownership of Common Stock in Ovation	0.00%
Sold interest in Ovation to Officers		$ 500,000
Percent Interest in Ovation of sale		37.80%

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BASIS OF PRESENTATION AND GOING CONCERN (Details Narrative)	Mar. 31, 2019 USD ($)
Accounting Policies [Abstract]
Net Losses since incesption	$ (31,893,764)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Accounting Policies [Abstract]
Cash	$ 2,005		$ 2,482
Stock based compenstation	0	$ 0
Convertible Notes Payable	175,000
Receivables related to royalty contracts	$ 5,053		$ 8,459
Additional shares issuable	7,506,688

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FIXED ASSETS (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Machinery and equipment	$ 48,163	$ 48,163
Furniture and fixtures	113,635	113,635
Computers, equipment and software	39,722	39,722
Leasehold improvements	12,569	12,569
Lab equipment	113,461	113,461
Total	327,550	327,550
Less: accumulated depreciation	(327,491)	(327,432)
Fixed assets, net of accumulated depreciation	$ 59	$ 118

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FIXED ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 59	$ 64

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INVENTORY - Schedule of Inventory (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Shipping and Packing Materials	$ 8,599	$ 8,611
Finished Goods	2,370	2,687
Raw Materials	6,119	6,119
Total	$ 17,088	$ 17,417

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INTANGIBLE AND OTHER ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Notes to Financial Statements
Intangible Assets	$ 673,610
Accumulated Amortization	503,509		$ 493,918
Amortization Expense	$ 9,592	$ 9,566

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STOCK OPTIONS AND WARRANTS - Summary of Options (Details)	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Stock Options And Warrants - Summary Of Options Details
Beginning Balance, number of shares | shares	161,000
Beginning Balance, weighted average exercise price | $ / shares	$ 1.80
Options granted and assumed, number of shares | shares
Options granted and assumed, weighted average exercise price | $ / shares
Options expired, number of shares | shares	(26,000)
Options expired, weighted average exercise price | $ / shares	$ 2.00
Options cancelled, number of shares | shares
Options cancelled, weighted average exercise price | $ / shares
Options exercised, number of shares | shares
Options exercised, weighted average exercise price | $ / shares
Ending Balance, number of shares | shares	135,000
Ending Balance, weighted average exercise price | $ / shares	$ 1.76

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STOCK OPTIONS AND WARRANTS - Summary of Warrants (Details)	3 Months Ended
	Mar. 31, 2019 $ / shares shares
Temporary Equity Disclosure [Abstract]
Beginning Balance, number of shares | shares	72,200
Beginning Balance, weighted average exercise price | $ / shares	$ 1.18
Warrants granted and assumed, number of shares | shares
Warrants granted and assumed, weighted average exercise price | $ / shares
Warrants expired, number of shares | shares
Warrants expired, weighted average exercise price | $ / shares
Warrants cancelled, number of shares | shares
Warrants cancelled, weighted average exercise price | $ / shares
Warrants exercised, number of shares | shares
Warrants exercised, weighted average exercise price | $ / shares
Ending Balance, number of shares | shares	72,200
Ending Balance, weighted average exercise price | $ / shares	$ 1.18

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NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended	10 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2013	Dec. 31, 2018	Jan. 27, 2016	May 19, 2014	May 22, 2013
Loans payable due in less than a year	$ 633,000				$ 633,000
Principal payments on notes payable	5,000
Notes reached maturity	1,000,000
Current Notes Payable due in less than 12 months	633,000
Forty One Noteholders
Settlement of ouststanding principal	1,663,875
Settlement of accrued interest	$ 385,563
Shares issued to settle debt	1,024,719
Stock payable	$ 874,294
Notes Payable One
Secured Promissory Notes, max amount offered						$ 33,000
Promissory Notes, Interest Rate						12.00%
Maturity Date	May 30, 2016
Principal payments on notes payable						$ 0
Twenty Four Notes Payble
Financing Plan Approved				May 22, 2013
Secured Promissory Notes, max amount offered								$ 1,000,000
Promissory Notes, Interest Rate								9.00%
Promissory Notes, Proceeds				$ 1,000,000
Promissory Notes, Due				2 years
Principal payments on notes payable								$ 0
Twenty Seven Notes Payable
Financing Plan Approved			May 19, 2014
Secured Promissory Notes, max amount offered							$ 1,000,000
Promissory Notes, Interest Rate							9.00%
Promissory Notes, Proceeds			$ 1,000,000
Promissory Notes, Due			2 years
Thirteen Notes Payable
Secured Promissory Notes, max amount offered		$ 326,000
Promissory Notes, Interest Rate		9.00%
Promissory Notes, Proceeds		$ 326,000
Promissory Notes, Due		2 years

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RELATED PARTY TRANSACTIONS (Details Narrative)	3 Months Ended
	Mar. 31, 2019 USD ($)
Related Party Transactions [Abstract]
Due to Officers	$ 86,400
Officer Advanced	$ 46,400

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CONVERTIBLE NOTES PAYABLE - Schedule of Conversions of Stock (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jul. 28, 2017
Convertible Notes Payable	$ 220,000	$ 219,922	$ 219,922
Total Net of Unamortized Discount	176,376		234,765
Convertible Note 3
Convertible Note Payable				$ 20,000
Unamortized debt discount
Total Net of Unamortized Discount				$ 20,000
Convertible Note 5
Convertible Note Payable	10,000		10,000
Unamortized debt discount			(78)
Total Net of Unamortized Discount	10,000		9,922
Convertible Note 4
Convertible Note Payable	15,000		15,000
Unamortized debt discount
Total Net of Unamortized Discount	15,000		15,000
Convertible Note 3
Convertible Note Payable	20,000
Unamortized debt discount
Total Net of Unamortized Discount	20,000
Convertible Note 2
Convertible Note Payable	135,000		135,000
Unamortized debt discount
Total Net of Unamortized Discount	135,000		135,000
Convertible Note 1
Convertible Note Payable	40,000		40,000
Unamortized debt discount
Total Net of Unamortized Discount	$ 40,000		$ 40,000

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CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Jan. 27, 2017	Aug. 11, 2016
Stock payable	2,053,466	2,053,466
Convertible Note 1
Expiration Date	Jan. 01, 2015
Discount Of Current Share Price	90.00%
Shares Issued as commitment	589,586
Settlement of outstanding principal	$ 960,000
Settlement of accrued interest	$ 219,172
Convertible Note 2
Expiration Date	Oct. 26, 2017
Discount Of Current Share Price	90.00%
Convertible Note 3
Convertible Notes Payable, Value	$ 20,000
Interest Rate	9.00%
Expiration Date	Feb. 17, 2018
Discount Of Current Share Price	90.00%
Convertible Note 4
Expiration Date	Aug. 11, 2018
Discount Of Current Share Price	90.00%
Convertible Note 5
Expiration Date	Aug. 11, 2018
Beneficial conversion feature	$ 2,138
Financing expense	$ 78
Discount Of Current Share Price	90.00%
Convertible Note One
Convertible Notes Payable, Value	$ 1,000,000
Interest Rate	9.00%
Stock payable	1,179,172
Convertible Note Two
Convertible Notes Payable, Value	$ 135,000
Interest Rate	9.00%
Convertible Note Four
Convertible Notes Payable, Value				$ 15,000
Interest Rate				9.00%
Convertible Note Five
Convertible Notes Payable, Value			$ 10,000
Interest Rate			9.00%

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CONVERTIBLE NOTES PAYABLE RELATED PARTY - Convertible Notes Payable Related Party Disclouser (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Notes to Financial Statements
Convertible Note Payable #1	$ 744,137		$ 744,137
Unamortized Debt Discount	176,376		234,765
Convertible Note Payable #2	299,316		299,316
Unamortized Debt Discount	(129,494)		(139,561)
Convertible Note Payable #3	182,083		182,083
Unamortized Debt Discount
Convertible Note Payable #4	106,152		106,152
Unamortized Debt Discount
Convertible Note Payable #5	142,501		142,501
Unamortized Debt Discount
Convertible Note Payable #6	118,126		118,126
Unamortized Debt Discount	(5,887)		(11,710)
Convertible Note Payable #7	40,558		40,558
Unamortized Debt Discount	(4,056)		(6,050)
Convertible Note Payable #8	65,295		65,295
Unamortized Debt Discount	(8,655)		(11,486)
Convertible Note Payable #9	329,287		329,287
Unamortized Debt Discount	(115,532)		(131,754)
Convertible Note Payable #12	188,817		188,817
Unamortized Debt Discount	(12,350)		(13,702)
Convertible Note Payable #15	111,056		111,056
Unamortized Debt Discount	(21,930)		(24,044)
Convertible Note Payable #16	182,775		182,775
Unamortized Debt Discount	(100,597)		(109,605)
Convertible Note Payable #17	178,439		178,439
Unamortized Debt Discount	(77,292)		(83,147)
Convertible Notes Payable	$ 2,036,374	$ 1,922,718	$ 1,922,718

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CONVERTIBLE NOTES PAYABLE RELATED PARTY (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 20, 2016	Mar. 31, 2019	Jul. 01, 2017	Dec. 30, 2016	Oct. 19, 2016	Sep. 30, 2016	Jul. 08, 2016	Jun. 30, 2016	Apr. 30, 2016	Mar. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 30, 2012	Jun. 30, 2012
Convertible Notes Payable Related Party 1
Convertible Notes Payable, Value	$ 982,253
Due Date	5 years	5 years
Interest Rate	10.00%	10.00%
Common Stock, Fixed Price	$ 0.50	$ 0.50
Conversion Feature, number of warrants to purchase for every two shares issued	1
Warrants, Exercise Price	$ 1.00
Conversion Date	6 years	6 years
Beneficial Conversion Feature	$ 982,253
Financing Expense	58,389
Settlement Amount	$ 238,115
Date of Settlement	Mar. 28, 2018
Convertible Notes Payable Related Party 2
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 2.0
Conversion Feature, number of warrants to purchase for every two shares issued																	1
Warrants, Exercise Price																	$ 3.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 209,809
Financing Expense		20,618
Cash payments to reduce note balance		$ 3,990
Date of Cash Payment		Jan. 18, 2013
Settlement Amount		$ 21,716
Date of Settlement		Oct. 19, 2016
Convertible Notes Payable Related Party Renewed 2
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.0
Warrants, Exercise Price			$ 1.5
Conversion Date		6 years
Beneficial Conversion Feature		$ 198,859
Financing Expense		$ 10,067
Convertible Notes Payable Related Party 3
Convertible Notes Payable, Value																$ 182,083
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.5
Conversion Feature, number of warrants to purchase for every two shares issued																1
Warrants, Exercise Price																$ 2.0
Conversion Date		6 years
Financing Expense		$ 182,083
Convertible Notes Payable Related Party 4
Convertible Notes Payable, Value															$ 106,153
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.5
Conversion Feature, number of warrants to purchase for every two shares issued															1
Warrants, Exercise Price															$ 2.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 70,768
Convertible Notes Payable Related Party 5
Convertible Notes Payable, Value														$ 142,501
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.5
Conversion Feature, number of warrants to purchase for every two shares issued														1
Warrants, Exercise Price														$ 2.0
Conversion Date		6 years
Convertible Notes Payable Related Party 6
Convertible Notes Payable, Value													$ 118,126
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.25
Conversion Feature, number of warrants to purchase for every two shares issued													1
Warrants, Exercise Price													$ 1.5
Conversion Date		6 years
Beneficial Conversion Feature		$ 118,126
Financing Expense		$ 5,823
Convertible Notes Payable Related Party 7
Convertible Notes Payable, Value												$ 40,558
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 2.0
Conversion Feature, number of warrants to purchase for every two shares issued												1
Warrants, Exercise Price												$ 2.5
Conversion Date		6 years
Beneficial Conversion Feature		$ 40,466
Financing Expense		$ 1,994
Convertible Notes Payable Related Party 8
Convertible Notes Payable, Value												$ 65,295
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 2.0
Conversion Feature, number of warrants to purchase for every two shares issued												1
Warrants, Exercise Price												$ 2.5
Conversion Date		6 years
Beneficial Conversion Feature		$ 57,439
Financing Expense		$ 2,831
ConvertibleNotesPayable9Member
Convertible Notes Payable, Value											$ 343,687
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.0
Conversion Feature, number of warrants to purchase for every two shares issued											1
Warrants, Exercise Price											$ 1.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 341,703
Financing Expense		$ 16,222
Date of conversion to common stock		Mar. 30, 2018
Debt converted to common stock		$ 14,400
Associated interest converted to common sotck		$ 3,118
Converted stock price per share		$ 1.80
Loss on settlement of debt		$ 8,200
ConvertibleNotesPayable12Member
Convertible Notes Payable, Value								$ 192,417
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.0
Conversion Feature, number of warrants to purchase for every two shares issued								1
Warrants, Exercise Price								$ 1.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 28,365
Financing Expense		$ 1,352
Date of conversion to common stock		Mar. 30, 2018
Debt converted to common stock		$ 3,600
Associated interest converted to common sotck		$ 779
Converted stock price per share		$ 1.80
Loss on settlement of debt		$ 2,050
ConvertibleNotesPayable13Member
Convertible Notes Payable, Value							$ 2,000
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 0.50
Conversion Feature, number of warrants to purchase for every two shares issued							1
Warrants, Exercise Price							$ 1.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 1,012
Financing Expense		738
Settlement Amount		$ 2,000
Date of Settlement		Mar. 28, 2018
ConvertibleNotesPayable14Member
Convertible Notes Payable, Value						$ 3,600
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 0.50
Conversion Feature, number of warrants to purchase for every two shares issued						1
Warrants, Exercise Price						$ 1.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 2,080
Financing Expense		$ 1,559
Date of conversion to common stock		Mar. 30, 2018
Debt converted to common stock		$ 3,600
Associated interest converted to common sotck		$ 779
Converted stock price per share		$ 1.80
Loss on settlement of debt		$ 2,050
ConvertibleNotesPayable15Member
Convertible Notes Payable, Value					$ 111,056
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 0.50
Conversion Feature, number of warrants to purchase for every two shares issued					1
Warrants, Exercise Price					$ 1.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 42,924
Financing Expense		$ 2,115
ConvertibleNotesPayable16Member
Convertible Notes Payable, Value				$ 186,375
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 0.50
Conversion Feature, number of warrants to purchase for every two shares issued				1
Warrants, Exercise Price				$ 1.0
Conversion Date		6 years
Beneficial Conversion Feature		$ 186,375
Financing Expense		$ 9,008
Date of conversion to common stock		Mar. 30, 2018
Debt converted to common stock		$ 3,600
Associated interest converted to common sotck		$ 779
Converted stock price per share		$ 1.80
Loss on settlement of debt		$ 2,050
ConvertibleNotesPayable17Member
Convertible Notes Payable, Value			$ 178,439
Due Date		5 years
Interest Rate		10.00%
Common Stock, Fixed Price		$ 1.0
Conversion Feature, number of warrants to purchase for every two shares issued			1
Warrants, Exercise Price			$ 1.5
Beneficial Conversion Feature		$ 118,800
Financing Expense		$ 5,855
ConvertibleNotesPayable10Member
Convertible Notes Payable, Value										$ 3,600
Conversion Feature, number of warrants to purchase for every two shares issued										1
Warrants, Exercise Price										$ 1.0
ConvertibleNotesPayable11Member
Convertible Notes Payable, Value									$ 33,333
Conversion Feature, number of warrants to purchase for every two shares issued									1
Warrants, Exercise Price									$ 1.0

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STOCKHOLDERS DEFICIT (Details Narrative) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Issued	2,896,689	2,896,689

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COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Apr. 01, 2018
Commitments and Contingencies Disclosure [Abstract]
Future operating lease obligations			$ 12,863	$ 37,517
Rental expense	$ 14,037	$ 13,381
Royalty Percentage to keep					100.00%

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MERGER AGREEMENT (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 26, 2018
Business Combinations [Abstract]
Gross preceeds received by parent		$ 10,000,000
Preceeds received within duration of merger	5 days
Parent to receive equity	72.50%
Parent shareholders right to receive equity	27.50%
Remaining parent related party indebtedness conversion period	180 days
Termination Fee		$ 300,000