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NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Substantial Doubt about Going Concern [Text Block]

NOTE 2 — GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS


The accompanying condensed 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. As shown in the accompanying financial statements for nine months ended September 30, 2019, the Company incurred net losses of $3,158,293 and has a working capital deficit (current liabilities in excess of current assets) of $8,751,403. These factors among others raise substantial doubts about the Company’s ability to continue as a going concern for a reasonable period.


The Company’s primary source of operating funds in the past has been from revenue generated from sales and cash proceeds from the sale of common stock and the issuance of convertible and other debt. The Company has experienced net losses and negative cash flows from operations since inception and has been hindered by the recent Order of Permanent Injunction resulting from the action brought by the Department of Justice (see Note 10). Under the current business model, the Injunction is likely to significantly reduce the Company’s future revenues. As a consequence of the Court Order (see Note 10), the Company resolved to divest itself of certain equipment and other assets (the “Equipment Assets”) used in connection with the Company’s human tissue banking business, but consistent however with the requirements of the Court Order, and to adjust the business plan and operations to accommodate this potential divesture. To facilitate the above, the Company entered into a Termination and Release Agreement and a Letter Agreement intended to divested itself of certain equipment and other assets underlying the related equipment lease transaction (see Notes, 4, and 8). Management is considering modifications to the Company business model in order to offset the loss of revenue resulting from the consequences of this Injunctive Order. As of the date herein, no specific undertakings have commenced. The Company has stockholders’ deficiencies at September 30, 2019 and requires additional financing to fund future operations.


The Company’s existence is dependent upon management’s ability to develop profitable operations and to obtain additional funding sources. There can be no assurance that the Company’s financing efforts or revenues realized from the Asset Sale and Lease Agreement will result in profitable operations or the resolution of the Company’s liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern.