10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2022

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

For the transition period from __________ to __________

COMMISSION FILE NUMBER: 333-208293

Can B Corp.

(Exact name of registrant as specified in its charter)

Florida	20-3624118
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

960 South Broadway, Suite 120

Hicksville, NY 11801

(Address of principal executive offices)

516-595-9544

(Registrant’s telephone number, including area code)

Canbiola, Inc.

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

Securities Registered Pursuant to Section 12(b) of the Act:

Tile of each class	Trading Symbol(s)	Name of each exchange on which registered
None	CANB	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

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

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

The number of shares of the registrant’s only class of common stock issued and outstanding as of May 11, 2022 is 3,325,814.

Can B Corp.

FORM 10-Q

March 31, 2022

TABLE OF CONTENTS

		Page
		No.
	PART I. - FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets – March 31, 2022 and December 31, 2021	3
	Consolidated Statements of Operations – Three Months Ended March 31, 2022 and 2021	4
	Consolidated Statement of Stockholders’ Equity - Three months ended March 31, 2022 and 2021	5
	Consolidated Statements of Cash Flows – Three Months Ended March 31, 2022 and 2021	6
	Condensed Notes to Unaudited Consolidated Financial Statements.	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	17
Item 3	Quantitative and Qualitative Disclosures About Market Risk.	17
Item 4	Controls and Procedures.	17
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3.	Defaults Upon Senior Securities	19
Item 4.	Mine Safety Disclosures	19
Item 5.	Other Information	19
Item 6.	Exhibits	19

2

PART 1 – FINANCIAL INFORMATION

Item 1. Financial Statements

Can B̅ Corp. and Subsidiaries

Consolidated Balance Sheets

	(Unaudited)
	March 31,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	114,992		$	449,001
Accounts receivable, less allowance for doubtful accounts of $547,241 and $547,241, respectively		4,438,286			3,646,677
Inventory		3,087,338			2,553,438
Note receivable		-			2,898
Prepaid expenses		-			1,625
Total current assets		7,640,616			6,653,639
Property and equipment, net		6,792,188			7,052,926
Other assets:
Deposits		165,787			165,787
Intangible assets, net		376,486			369,015
Operating lease right-of-use-asset, net		2,009,212			2,220,134
Other noncurrent assets		13,139			13,139
Total other assets		2,564,624			2,768,075
Total assets	$	16,997,428		$	16,474,640
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,153,587		$	1,163,284
Accrued expenses		157,343			2,407,528
Due to related party		210,434			218,273
Notes and loans payable, net		6,063,315			4,865,749
Warrant liabilities		195,678			-
Operating lease liability - current		809,010			808,223
Total current liabilities		9,589,367			9,463,057
Long-term liabilities:
Operating lease liability - noncurrent		1,159,867			1,392,068
Total long-term liabilities		1,159,867			1,392,068
Total liabilities	$	10,749,234		$	10,855,125
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, authorized 5,000,000 shares:
Series A Preferred stock, no par value: 20 shares authorized, 5 shares and 20 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		5,320,000			28,440,000
Series B Preferred stock, $0.001 par value: 500,000 shares authorized, 0 issued and outstanding		-			-
Series C Preferred stock, $0.001 par value: 2,000 shares authorized, 23 issued and outstanding		207,000			207,000
Series D Preferred stock, $0.001 par value: 4,000 shares authorized, 1,950 issued and outstanding		2			2
Common stock, no par value; 1,500,000,000 shares authorized, 3,264,566 and 2,834,755 issued and outstanding at March 31, 2022 and December 31, 2021, respectively		76,219,018			49,676,847
Common stock issuable, no par value; 21,547 and 0 shares at March 31, 2022 and December 31, 2021, respectively		119,586			-
Treasury stock		(572,678	)		(572,678	)
Additional paid-in capital		6,206,822			5,635,003
Accumulated deficit		(81,251,556	)		(77,766,659	)
Total stockholders’ equity		6,248,194			5,619,515
Total liabilities and stockholders’ equity	$	16,997,428		$	16,474,640

See notes to consolidated financial statements

3

Can B̅ Corp. and Subsidiaries

Consolidated Statement of Operations

	Three Months Ended
	March 31,
	2022			2021
Revenues
Product sales	$	1,310,396		$	243,695
Service revenue		549,924			63,245
Total revenues		1,860,320			306,940
Cost of revenues		1,190,330			76,795
Gross profit		669,990			230,145
Operating expenses		3,861,997			2,022,679
Loss from operations		(3,192,007	)		(1,792,534	)
Other income (expense):
Other income		-			5,564
Change in fair value of warrant liabilities		29,337			-
Interest expense		(322,227	)		(392,787	)
Other expense		(292,890	)		(387,223	)
Loss before provision for income taxes		(3,484,897	)		(2,179,757	)
Provision for (benefit from) income taxes		-			125
Net loss	$	(3,484,897	)	$	(2,179,882	)
Loss per share - basic and diluted	$	(1.10	)	$	(3.58	)
Weighted average shares outstanding - basic and diluted		3,154,004			608,797

See notes to consolidated financial statements

4

Can B̅ Corp. and Subsidiaries

Consolidated Statement of Stockholders’ Equity

Three Months Ended March 31, 2022 and 2021

	Series A						Series B				Series C						Series D									Common						Additional
	Preferred Stock						Preferred Stock				Preferred Stock						Preferred Stock				Common Stock				Stock		Treasury Stock					Paid-in		Accumulated
	Shares			Amount			Shares		Amount		Shares			Amount			Shares		Amount		Shares		Amount		Issuable		Shares		Amount			Capital		Deficit			Total
Three months ended March 31, 2022
Balance, January 1, 2022		20		$	28,440,000			-	$	-		23		$	207,000			1,950	$	2		2,834,755	$	49,676,847		-		36,248	$	(572,678	)	$	5,635,003	$	(77,766,659	)	$	5,619,515
Issuance of common stock for services rendered		-			-			-		-		-			-			-		-		130,825		928,929		119,586		-		-			-		-			1,102,515
Issuance of common stock for asset acquisitions		-			-			-		-		-			-			-		-		190,505		1,767,498		-		-		-			-		-			1,767,498
Sale of common stock		-			-			-		-		-			-			-		-		51,282		500,000		-		-		-			-		-			500,000
Issuance of common stock in lieu of interest payments		-			-			-		-		-			-			-		-		10,150		73,078		-		-		-			-		-			73,078
Conversion of Series A preferred stock to common stock		(15	)		(23,120,000	)		-		-		-			-			-		-		33,345		23,120,000		-		-		-			-		-			-
Issuance of common stock for property and equipment		-			-			-		-		-			-			-		-		13,704		98,666		-		-		-			-		-			98,666
Stock-based compensation		-			-			-		-		-			-			-		-		-		-				-		-			571,819		-			571,819
Net loss		-			-			-		-		-			-			-		-		-		-		-		-		-			-		(3,484,897	)		(3,484,897	)
Balance, March 31, 2022		5		$	5,320,000			-	$	-		23		$	207,000			1,950	$	2		3,264,566	$	76,219,018		119,586		36,248	$	(572,678	)	$	6,206,822	$	(81,251,556	)	$	6,248,194
Three months ended March 31, 2021
Balance, January 1, 2021		20		$	28,440,000			-	$	-		623		$	5,607,000			-	$	-		369,639	$	30,874,270		0		36,248	$	(572,678	)	$	2,724,689	$	(65,597,264	)	$	1,476,017
Issuance of common stock for services rendered		-			-			-		-		-			-			-		-		8,717		66,135		0		-		-			-		-			66,135
Issuance of common stock in lieu of note repayments		-			-			-		-		-			-			-		-		77,017		537,748		0		-		-			-		-			537,748
Issuance of common stock for asset acquisition		-			-			-		-		-			-			-		-		23,670		137,673		0		-		-			-		-			137,673
Sale of common stock		-			-			-		-		-			-			-		-		382,133		2,866,000		0		-		-								2,866,000
Issuance of Series D preferred stock		-			-			-		-		-			-			1,950		2		-		-		0		-		-			-		-			2
Conversion of Series C preferred stock to common stock		-			-			-		-		(150	)		(1,350,000	)		-		-		250,000		1,350,000		0		-		-			-		-			-
Net loss		-			-			-		-		-			-			-		-		-		-		0		-		-			-		(2,179,882	)		(2,179,882	)
Balance, March 31, 2021		20		$	28,440,000			-	$	-		473		$	4,257,000			1,950	$	2		1,111,177	$	35,831,826		0		36,248	$	(572,678	)	$	2,724,689	$	(67,777,146	)	$	2,903,693

See notes to consolidated financial statements

5

Can B̅ Corp. and Subsidiaries

Consolidated Statement of Cash Flows

	Three Months Ended
	March 31,
	2022			2021
Operating activities:
Net loss	$	(3,484,897	)	$	(2,179,882	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		1,012,379			-
Depreciation		359,404			31,551
Amortization of intangible assets		10,026			43,860
Amortization of original-issue-discounts		158,815			351,535
Bad debt expense		2,898			47,452
Change in fair value of warrant liabilities		(29,337	)		-
Stock-based interest expense		73,078			-
Stock-based consulting expense		1,102,515			66,135
Changes in operating assets and liabilities:
Accounts receivable		(791,609	)		(73,401	)
Inventory		(553,064	)		13,003
Prepaid expenses		1,625			275,420
Deposits		-			(2,000	)
Other noncurrent assets		-			7,347
Operating lease right-of-use asset		(20,492	)		(155	)
Accounts payable		985,710			(24,464	)
Accrued expenses		(500,185	)		(42,730	)
Net cash used in operating activities		(2,094,530	)		(1,486,329	)
Investing activities:
Purchase of intangible assets		-			(177,530	)
Net cash used in investing activities		-			(177,530	)
Financing activities:
Proceeds received from notes and loans payable		1,382,300			175,000
Proceeds from issuance of Series D Preferred Stock		-			2
Proceeds from sale of common stock		500,000			2,932,135
Repayments of notes and loans payable		(75,250	)		(224,000	)
Amounts repaid to related parties, net		(7,839	)		-
Deferred financing costs		(38,690	)		-
Net cash provided by financing activities		1,760,521			2,883,137
(Decrease) Increase in cash and cash equivalents		(334,009	)		1,219,278	)
Cash and cash equivalents, beginning of period		449,001			457,798
Cash and cash equivalents, end of period	$	114,992		$	1,677,076
Supplemental Cash Flow Information:
Income taxes paid	$	-		$	125
Interest paid	$	47,206		$	-
Non-cash Investing and Financing Activities:
Issuance of common stock in lieu of repayments of notes payable	$	-		$	537,748
Issuance of common stock for property and equipment	$	98,666		$	-
Issuance of common stock in asset acquisitions	$	1,767,498		$	137,673
Conversion of Series A Preferred stock to common stock	$	23,120,000		$	-
Debt discount associated with warrant liabilities	$	225,015		$	-

See notes to consolidated financial statements

6

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Note 1 – Organization and Description of Business

Can B̅ Corp. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B̅ Corp. (the “Company”, “we”, “us”, “our”, “CANB”, “Can B̅” or “Registrant”).

The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company (“PHP” or “Pure Health Products”) effective December 28, 2018. The Company runs it manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company’s durable equipment products, such as sam® units with and without CBD infused pads, are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, “Duramed”). Duramed began operating on or about February 1, 2019. Most of the Company’s consumer products include hemp derived cannabidiol (“CBD”); however, the Company has just recently begun extracting cannabinol (“CBN”) and cannabigerol (“CBG”) for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021), TN Botanicals, LLC and CO Botanicals LLC (both incorporated in August 2021). These three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 and Delta-10 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived Delta-8 and Delta-10 are in a gray area and considered a potential loophole at this point due to the 2018 hemp bill. The Company’s other subsidiaries did not have operations during the year ended December 31, 2021.

The Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B̅’s products include oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B̅ develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B̅ aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people’s lives in a variety of areas.

Note 2 – Liquidity

The consolidated financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in a normal course of business. As of March 31, 2022, the Company had cash and cash equivalents of $114,992 and negative working capital of $1,948,751 . For the periods ended March 31, 2022 and 2021, the Company had incurred losses of $3,484,897 and $2,179,882 , respectively. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company plans to improve its financial condition by raising capital through the sale of shares of its common stock. Also, the Company plans to expand its operation of CBD products to increase its profitability. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Note 3 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. Results for interim periods are not necessarily indicative of results to be expected for a full year.

The consolidated balance sheet information as of December 31, 2021 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). The interim consolidated financial statements contained herein should be read in conjunction with the 2021 Form 10-K.

7

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Principles of Consolidation

The unaudited consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Covid-19

Commencing in December 2019, the novel strain of coronavirus (“COVID-19”) began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition and/or results of operations is uncertain.

In response to COVID-19, the Company put into place certain restrictions, requirements and guidelines to protect the health of its employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of its employees, the Company’s daily execution has evolved into a largely virtual model. The Company plans to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that it determines to be in the interests of its employees, customers, and partners.

Management Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2021 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.

Significant Accounting Policies

The Company’s significant accounting policies are described in “Note 3: Summary of Significant Accounting Policies” of our 2021 Form 10-K.

8

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Segment reporting

As of March 31, 2022, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company’s business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company’s previously reported net loss.

Note 4 – Fair Value Measurements

The carrying value and fair value of the Company’s financial instruments are as follows:

March 31, 2022
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	195,678	$	195,678

As of December 31, 2021
		Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	—	$	—

The fair value of the warrants outstanding was estimated using the Black-Scholes model. The application of the Black-Scholes model requires the use of a number of inputs and significant assumptions including volatility. The following reflects the inputs and assumptions used:

As of
		March 31, 2022		December 31, 2021
Stock price	$	5.55		N/A
Exercise price	$	6.40		N/A
Remaining term (in years)		0.98		N/A
Volatility		110	%	N/A
Risk-free rate		1.63	%	N/A
Expected dividend yield		—	%	—

The warrant liabilities will be remeasured at each reporting period with changes in fair value recorded in other income (expense), net on the consolidated statements of operations. The change in fair value of the warrant liabilities was as follows:

Warrant Liabilities
Estimated fair value at March 22, 2022	$	225,015
Change in fair value		(29,337	)
Estimated fair value at March 31, 2022	$	195,678

9

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Note 5 – Asset Acquisitions

Botanical Biotech Asset Acquisition

On March 11, 2021, Company entered into an Asset Acquisition Agreement, which was fully executed on March 17, 2021, with multiple sellers (each, a “Seller” and, collectively, the “Sellers”), pursuant to which the Sellers agreed to sell certain assets to Company, and to transfer such assets to Botanical Biotech, LLC, a newly-formed, wholly-owned subsidiary of the Company (“Transferee” or “BB”). The assets purchased (“BB Assets”) include certain materials and manufacturing equipment, marketing or promotional designs, brochures, advertisements, concepts, literature, books, media rights, rights against any other person or entity in respect of any of the foregoing and all other promotional properties, in each case primarily used, developed or acquired by the Sellers for use in connection with the ownership and operation of the BB Assets. In exchange for the BB Assets the Company will pay the Seller a maximum of $355,057, payable half in the form of cash or cash equivalent and half in the form of restricted shares of common stock of the Company (the “Shares”) at a price per Share equal to the average closing price of the common stock of the Company during the ten (10) consecutive trading days immediately preceding the closing. The Company has agreed to indemnify the Sellers for certain breaches of covenants, representations and warranties and for claims relating to the BB Assets following closing.

In conjunction with the BB asset acquisition, the Company entered into employment agreements with two sellers.

The Company and BB entered into an employment agreement with Lebsock dated March 11, 2021 (the “Lebsock Agreement”) pursuant to which Lebsock will serve as the President of BB for a term of three (3) years. The term of the Lebsock Agreement will automatically renew for an additional 3-year term unless other terminated by either party.

Lebsock will receive a base salary equal to $120,000 per year, subject to an annual increase of not less than 3% on each anniversary of the Lebsock Agreement during the term. The Company also agreed to issue a stock bonus to Lebsock in accordance with the Company’s Incentive Stock Option Plan (“ISOP”) in an amount of $100,000, and to pay Lebsock a defined percentage of the EBITDA for BB each calendar quarter (“Profit Split”) according to a mutually agreed performance target (“Target”). EBITDA is defined as the earnings before interest, depreciation, taxes, depreciation, and amortization and will be paid as reported by the Company’s accountant and as reviewed by the Company’s auditor. It will be accumulative on a quarter-to-quarter basis, meaning if one quarter has a negative EBITDA, it would be offset against the following quarter’s positive EBITDA distribution. Lebsock has the option to accept the Profit Split in either direct cash payment or Shares, or any combination, at Lebsock’s option. Shares would be valued at the prior 10-day closing price and issued under SEC Rule 144 restriction.

Effective March 16, 2021, BB entered into a Consulting Agreement (the “Schlosser Agreement”) with Schlosser pursuant to which Schlosser has agreed to provide consulting services to BB for a period of 3 months in exchange for compensation equal to $10,000 per month. Schlosser will also be entitled to reimbursement for certain work-related expenses. Pursuant to the Schlosser Agreement, Schlosser also agreed to assign to BB all inventions developed by Schlosser in connection with his services to BB. The Schlosser Agreement also contains certain non-compete and confidentiality provisions. Per the Acquisition Agreement, Schlosser was to receive an employment agreement similar to the Lebsock Agreement; however, BB and Schlosser elected to enter into the Schlosser Agreement instead.

CO Botanicals Asset Acquisition

On August 12, 2021, The Company and CO Botanicals LLC (“COB”), a newly-formed, wholly-owned subsidiary of the Company entered into an Equipment Acquisition Agreement (the “TWS Agreement”) with TWS Pharma, LLC,

(“TWS Pharma”) and L7 TWS Pharma, LLC (“L7 TWS” and, collectively with TWS Pharma, “TWS”). Pursuant to the TWS Agreement, COB agreed to purchase certain equipment and other assets from TWS (the “TWS Assets”) for a total purchase price equal to $5,316,774, with $1,250,000 payable via a 12-month promissory note issued by the Company to TWS Pharma with 6% simple interest and monthly payments of $100,000 due per month (the “TWS Note”), and $4,066,774 payable in shares of the Company’s common stock valued at $0.62 per share (the “TWS Shares”); provided, however, that $1,750,000 of the TWS Shares will be withheld in escrow for a period of ninety (90) days from the closing date, which will be deducted from the purchase price should the Company discover any defects or misrepresentations. The first $500,000 of payments of the TWS Note will be secured by 1,000,000 shares of the Company’s common stock to be held in escrow. During the period ending March 31, 2022, the $1,750,000 of shares held in escrow were released and issued.

10

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

TN Botanicals Asset Acquisition

On August 13, 2021 the Company and TN Botanicals LLC (“TNB”), a newly-formed, wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “MCB Agreement”) with Music City Botanicals, LLC, pursuant to which TNB agreed to purchase certain equipment, other assets, and intellectual property from MCB (the “MCB Assets”) for a total purchase price equal to $1,394,324, with $498,259 payable in cash and $896,065 payable in shares of the Company’s common stock valued at $0.62 per share (the “MCB Shares”).

Imbibe Health Solutions Asset Acquisition

On February 22, 2021, Can B̅ Corp. (the “Company”) entered into a material definitive agreement (“Acquisition Agreement”) with Imbibe Health Solutions, LLC, a Delaware limited liability company (“Imbibe”), pursuant to which Imbibe agreed to sell certain of its assets to the Company. The assets to be purchased (“Assets”) include the intellectual property rights and other intangible assets relating to its branded products containing CBD. In exchange for the Assets, the Company has agreed to pay Imbibe $120,000 in the form of shares of common stock of the Company (with standard restricted legend, the “Shares”) at a price per share equal to the average price of the common stock of the Company during the ten (10) consecutive trading days immediately preceding the closing. The transaction finalized and $102,502 worth of shares were issued on November 7, 2021 and the remaining balance of $17,498 of shares were issued during the period ending March 31, 2022.

Note 6 – Inventories

Inventories consist of:

	March 31,		December 31,
	2022		2021
Raw materials	$	1,033,171	$	818,042
Finished goods		2,054,167		1,735,396
Total	$	3,087,338	$	2,553,438

Note 7 – Property and Equipment

Property and equipment consist of:

	March 31,			December 31,
	2022			2021
Furniture and fixtures	$	21,724		$	21,724
Office equipment		12,378			12,378
Manufacturing equipment		7,117,188			7,018,522
Medical equipment		776,396			776,396
Leasehold improvements		26,902			26,902
Total		7,954,588			7,855,922
Accumulated depreciation		(1,162,400	)		(802,996	)
Net	$	6,792,188		$	7,052,926

Depreciation expense related to property and equipment was $359,404 and $31,551 for the three-month periods ending March 31, 2022 and 2021, respectively.

Note 8 – Intangible Assets

Intangible assets consist of:

	March 31,			December 31,
	2022			2021
Technology, IP and patents	$	435,500		$	418,003
Total		435,500			418,003
Accumulated amortization		(59,014	)		(48,988	)
	$	376,486		$	369,015

Amortization expense was $10,026 and $43,860 for the three months ended March 31, 2022 and 2021, respectively.

11

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Amortization expense for the balance of 2022, and for each of the next five years and thereafter is estimated to be as follows:

Nine months ended December 31, 2022	$	32,640
Fiscal year 2023		43,520
Fiscal year 2024		43,520
Fiscal year 2025		43,520
Fiscal year 2026		43,520
Thereafter		169,766
	$	376,486

Note 9 – Notes and Loans Payable

Convertible Promissory Notes

In December 2020, the Company entered into a convertible promissory note (“ASOP Note I”) with Arena Special Opportunities Partners I, LP (“ASOP”). The principal balance of the note is $2,675,239 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 3,426,280 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 3,426,280 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note I. The principal balance outstanding at March 31, 2022 was $2,400,997.

In December 2020, the Company entered into a convertible promissory note (“ASOF Note I”) with Arena Special Opportunities Fund, LP (“ASOF”). The principal balance of the note is $102,539 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOF convertible promissory note was issued with 131,325 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 131,325 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note I. The principal balance outstanding at March 31, 2022 was $87,773.

In May 2021, the Company entered into a convertible promissory note (“ASOP Note II”) with Arena Special Opportunities Partners I, LP. The principal balance of the note is $1,193,135 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 1,529,670 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 1,529,670 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note II. The principal balance outstanding at March 31, 2022 was $1,073,250.

12

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

In May 2021, the Company entered into a convertible promissory note (“ASOF Note II”) with Arena Special Opportunities Fund, LP. The principal balance of the note is $306,865 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 393,417 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 393,417 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note II. The principal balance outstanding at March 31, 2022 was $276,750.

The maturity dates for the above notes were extended to April 30, 2022 on April 14, 2022 in exchange for the Company’s promise to pay the holders $300,000. The holders agreed to allow the Company to extend the notes for two additional 30-day periods for $100,000 per extension. The holders also waived certain defaults under the notes. The Company has since elected to extend the maturity date to May 31, 2022 for the promise to pay an additional $100,000.

In March 2022, the Company entered into a convertible promissory note (“BL Note”) with Blue Lake Partners, LLC (“BL”). The principal balance of the note is $250,000 and it is to be utilized for working capital purposes. The note matures on March 22, 2023 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the BL Note was issued with 39,062 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 39,062 shares of the Company’s common stock at an exercise price of $6.40 per share. The common stock purchase warrants issued to BL are considered derivatives and did not satisfy the criteria for classification as equity instruments and were bifurcated from the host contract - convertible promissory note and recorded as a liability at fair value with a corresponding debt discount recorded to the BL Note with subsequent changes in fair values recognized in the consolidated statement of operations at each reporting date. Aggregate amortization of the original issue discount for the period ended March 31, 2022 and 2021 was approximately $0 and $0, respectively. The principal balance outstanding at March 31, 2022 was $250,000.

In March 2022, the Company entered into a convertible promissory note (“MH Note”) with Mast Hill Fund, LP (“MH”). The principal balance of the note is $350,000 and it is to be utilized for working capital purposes. The note matures on March 22, 2023 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the BL Note was issued with 39,062 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 39,062 shares of the Company’s common stock at an exercise price of $6.40 per share. The common stock purchase warrants issued to BL are considered derivatives and did not satisfy the criteria for classification as equity instruments and were bifurcated from the host contract - convertible promissory note and recorded as a liability at fair value with a corresponding debt discount recorded to the BL Note with subsequent changes in fair values recognized in the consolidated statement of operations at each reporting date. Aggregate amortization of the original issue discount for the period ended March 31, 2022 and 2021 was approximately $0 and $0, respectively. The principal balance outstanding at March 31, 2022 was $350,000.

In February 2022, the Company entered into a convertible promissory note (“Tysadco Note”) with Tysadco Partners, LLC (“Tysadco”). The principal balance of the note is $450,000 and it is to be utilized for working capital purposes. The note matures on July 25, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. The principal balance outstanding at March 31, 2022 was $350,000 and the remaining $100,000 of proceeds was received subsequently in April 2022.

TWS Note

On August 12, 2021, pursuant to an Equipment Acquisition Agreement, the Company entered into a twelve-month promissory note of $1,250,000 with payments of $100,000 per month and interest at 6% (See Note 5). As of March 31, 2022, the total amount outstanding was $1,050,000.

Other Loans

On November 18, 2021, the Company entered into a $100,000 unsecured promissory note agreement with a lender. The promissory note accrues interest at a rate of 10% per annum and is due within twelve months or due on demand subsequently to any major funding received by the Company in excess of $3,000,000. As of March 31, 2022 the total amount outstanding was $100,000.

On February 2, 2022, the Company entered into a Future Receivable Sale and Purchase Agreement with a Purchaser. Pursuant to the terms of the agreement, the Company sold an aggregate of $136,000 of future receivables for a purchase amount of $100,000. The aggregate principal amount is payable in weekly installments totaling 2,833 until such time the obligation is fully satisfied. As of March 31, 2022 the total amount outstanding was $116,167.

On February 11, 2022, the Company entered into a $150,000 unsecured promissory note agreement with a lender. The promissory note accrues interest at a rate of 16% per annum and is due within six months or due on demand subsequently to any major funding received by the Company in excess of $2,000,000. As of March 31, 2022 the total amount outstanding was $150,000.

On March 3, 2022, the Company entered into a Receivable Purchase and Sale Agreement with a Buyer. Pursuant to the terms of the agreement, the Company sold an aggregate of $350,00 of future receivables for a purchase amount of $250,000. The aggregate principal amount is payable in daily installments totaling 2,917 until such time the obligation is fully satisfied. As of March 31, 2022 the total amount outstanding was $182,083.

Note 10 – Stockholders’ Equity

Preferred Stock

Each share of Series A Preferred Stock is convertible into 218 shares of CANB common stock and is entitled to 4,444 votes. All Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. In the event of a Liquidation Event, whether voluntary or involuntary, each holder may elect (i) to receive, in preference to the holders of Common Stock, a one-time liquidation preference on a per-share amount equal to the per-share value of preferred shares on the issuance date, as recorded in the Company’s financial records, or (ii) to participate pari passu with the Common Stock on an as-converted basis. Subject to any adjustments, the Series A holders shall be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock on an as converted basis. During the three months ended March 31, 2022, the Company converted 15 shares of Series A preferred stock to 33,345 shares of common stock.

13

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Each share of Series B Preferred Stock has the first preference to dividends, distributions and payments upon liquidation, dissolution and winding-up of the Company, and is entitled to an accrued cumulative but not compounding dividend at the rate of 5% per annum whether or not declared. After six months of the issuance date, such share and any accrued but unpaid dividends can be converted into common stock at the conversion price which is the lower of (i) $0.0101; or (ii) the lower of the dollar volume weighted average price of CANB common stock on the trading day prior to the conversion day or the dollar volume weighted average price of CANB common stock on the conversion day. The shares of Series B Preferred Stock have no voting rights.

Each share of Series C Preferred Stock has preference to payment of dividends, if and when declared by the Company, compared to shares of our common stock. Each Preferred Series C share is convertible into 25,000 shares of common stock. The shares of Series C Preferred Stock have voting rights as if fully converted.

Each share of Series D Preferred Stock has 10,000 shares of voting rights only pari passu to common shares voting with no conversion rights and no equity participation. The Company can redeem Series D Preferred Stock at any time for par value.

On February 8, 2021, the Company’s Board of Directors approved the designation of the Series D Preferred Shares and the number of shares constituting such series, and the rights, powers, preferences, privileges and restrictions relating to such series. On March 27, 2021, the Company filed an amendment to its articles of incorporation to authorize 4,000 shares of a new Series D Preferred Stock with a par value of $0.001 each. All Series D Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. Each Series D Preferred Share shall have voting rights equal to 667 shares of Common Stock, adjustable at any recapitalization of the Company’s stock. In the event of a liquidation event, whether voluntary or involuntary, each holder shall have a liquidation preference on a per-share amount equal to the par value of such holder’s Series D Preferred Shares. The holders shall not be entitled to receive distributions made or dividends paid to the Company’s other stockholders. Except as otherwise required by law, for as long as any Series D Preferred Shares remain outstanding, the Company shall have the option to redeem any outstanding share of Series D Preferred Shares at any time for a purchase price of par value per share of Series D Preferred Shares (“Price per Share”). Should the Company desire to purchase Series D Preferred Shares, the Company shall provide the Holder with written notice and a check or cash in an amount equal to the number of shares of Series D Preferred Shares being purchased multiplied by the Price per Share. The shares of Series D Preferred Shares so purchased shall be deemed automatically cancelled and the Holder shall return the certificates for such share to the Corporation. On or around March 27, 2021, the Company issued Mr. Alfonsi, Mr. Ferro, and Mr. Teeple Series D Preferred Stock in the amount of 600 shares each and to COO Philip Scala in the amount of 150 shares, collectively representing 1,300,000 voting shares.

Common Stock

For the three months ended March 31, 2022, the Company issued an aggregate of 51,282 shares of Common Stock under its Offering Statement on Form 1-A (File No. 024-11233) (the “Regulation A Offering”).

In addition, for the three months ended March 31, 2022, the Company issued an aggregate of 190,505, 13,704, 130,825, and 10,150 of Common Stock for asset acquisitions, property and equipment, services rendered, and in lieu of interest repayments, respectively.

14

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Note 11 – Stock Options

A summary of stock options activity for the three months ended March 31, 2022 is as follows:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, January 1, 2022		377,654	$	6.11		4.46
Granted		79,013		5.10		4.77
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, March 31, 2022		456,666	$	5.93		4.31

	Option Shares			Weighted Average Grant-Date Fair Value
Non-vested options, January 1, 2022		-		$	-
Granted		79,013			7.24
Vested		(79,013	)		7.24
Forfeited		-			-
Non-vested options, March 31, 2022		-		$	-

Note 12 – Income Taxes

The Company’s income tax provisions for the three months ended March 31, 2022 and 2021 reflect the Company’s estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company’s estimated tax expense for the full year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions.

Note 13 – Related Party Transactions

For the three months ended March 31, 2022 and 2021, the Company paid fees to a service provider that is a relative of a director for professional services in the amount of $0 and $9,900, respectively. At March 31, 2022 and December 31, 2021, the Company had outstanding payables to the aforementioned service provider of $0 and $5,000, respectively.

At March 31, 2022, the Company has amounts due to a director of the Company of approximately $210,434 which are expected to be repaid in the next twelve months.

15

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Note 14 – Commitments and Contingencies

Lease Agreements

The Company leases office space in numerous medical facilities offices under month-to-month agreements.

Rent expense for the three months ended March 31, 2022 and 2021 was $203,017 and $71,448, respectively.

At March 31, 2022, the future minimum lease payments under non-cancellable operating leases were:

Nine months ended December 31, 2022	$	809,010
Fiscal year 2023		832,893
Fiscal year 2024		326,974
	$	1,968,877

Note 15 – Subsequent Events

On April 13, 2022, the Company entered into an Amendment to Transactional Documents with Arena Special Opportunities Partners I, LP, a Delaware limited partnership (the “ASOP”) and Arena Special Opportunities Fund, LP, a Delaware limited partnership (“ASOF” and, collectively with ASOP, the “Holders”) whereby the holders extended the maturity date of certain previously issued promissory notes to April 30, 2022 in exchange for $300,000 and agreed to grant two additional extensions for 30 days each, each for an additional $100,000 per extension. Holders also waived certain defaults under the notes and granted consents required under the notes. The Company has elected to extend the maturity of the notes to May 31, 2022, for an additional $100,000 to be paid from future offering proceeds.

On April 24, 2022, the Company entered into securities purchase agreements and related agreements with an investor for the sale of $150,000 in a convertible promissory note and warrants.

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements are issued and as of that date, except as reported below, there were no subsequent events that required adjustment or disclosure in the consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Can B̅ Corp. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B̅ Corp. (.

The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company (“PHP” or “Pure Health Products”) effective December 28, 2018. The Company runs it manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company’s durable equipment products, such as sam® units with and without CBD infused pads, are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, “Duramed”). Duramed began operating on or about February 1, 2019. Most of the Company’s consumer products include hemp derived cannabidiol (“CBD”); however, the Company has just recently begun extracting cannabinol (“CBN”) and cannabigerol (“CBG”) for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021) and TN Botanicals LLC and CO Botanicals LLC (both incorporated in August 2021). The three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived delta-8 is in a gray area. The Company’s other subsidiaries did not have operations during the three months ended March 31, 2022.

The Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B̅’s products include oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B̅ develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B̅ aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people’s lives in a variety of areas.

The consolidated financial statements include the accounts of CANB and its operational wholly owned subsidiaries.

Results of Operations

Three months ended March 31, 2022 compared to three months ended March 31, 2021.

Revenues increased $1,553,380 from $306,940 in 2021 to $1,860,320 in 2022. The increase is due to the wind down of restrictions related to the Covid-19 Pandemic surrounding elective surgeries, enabling an increase in the usage of the Company’s Duramed product lines and ultrasound device associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands related to an increase of sales compared to 2021 of $564,643.

Cost of revenues increased $1,113,535 from $76,795 in 2021 to $1,190,330 in 2022 due to the increase in sales and overall operations in the three months ended March 31, 2022.

Operating expenses increased $1,839,318 from $2,022,679 in 2021 to $3,861,997 in 2022 as a direct result of professional fees and other accounting and legal fees related to the Company’s registration statement S-1 filing efforts.

Net loss increased $1,305,015 from $2,179,757 in 2021 to $3,484,897 in 2022. The increase was due to the $1,839,318 increase in total operating expenses net of the $439,845 increase in gross profit.

Liquidity and Capital Resources

At March 31, 2022, the Company had cash and cash equivalents of $114,992 and negative working capital of $1,948,751. Cash and cash equivalents decreased $334,009 from $449,001 at December 31, 2021 to $114,992 at March 31, 2022 . For the three months ended March 31, 2022, $1,760,521  was provided by financing activities and $2,094,530  was used in operating activities.

The Company currently has no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

We have no off-balance sheet arrangements.

Trend Information

The novel coronavirus disease of 2019 (“COVID-19”) outbreak has affected the Company’s operations as set forth above. The full impact of the COVID-19 outbreak continues to evolve. As such, it is uncertain as to the full magnitude that the pandemic will have on our financial condition, liquidity, and future results of operations. Management is actively monitoring the impact of the global situation on our financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, we are not able to estimate the effects of the COVID-19 outbreak on our results of operations, financial condition, or liquidity for the foreseeable future. Presently, our Duramed operations are at 80% of pre-COVID operational level. Our expectation that as business open, and in particular medical offices, that our recovery will progress in sync with the speed of the business openings and expect to be back to pre-COVID operational level by end of the 2^nd quarter 2022. Sales of CBD and related products continue to moderately recover and we expect to be back at pre-COVID levels by the end of the 3^rd quarter 2022.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None.

ITEM 4. CONTROLS AND PROCEDURES

(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of March 31, 2022, our principal executive officer and principal financial officer conducted an evaluation regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act). Based upon the evaluation of these controls and procedures, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report.

17

(B) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our internal control over financial reporting in our fiscal quarter for the period March 31, 2022 covered by this Quarterly Report on Form 10-Q, that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

PART II- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On April 28, 2021, the Company was served with a commercial legal action against the Company and certain officers by David Weissberg and Donna Marino, who are investors in the Company (collectively, the “Investors”). The complaint was filed in the Supreme Court of the State of New York, County of Nassau, Index No. 605191/2021. The complaint alleges four causes of action.

The first cause of action alleges that the Company breached Securities Purchase Agreements with the Investors by failing to assist the Investors in getting opinion letters to remove the restrictive legends from their shares, even though the Company made introductions and requests to the Company’s counsel, provided supporting documents for the Investor’s shares, and ultimately the opinion letters could not be rendered because the Investors failed to submit required documentation to counsel.

The second cause of action is similar to the first but related to alleged misrepresentations regarding removing the restrictive legends from shares that were issued for services rather than purchased.

The third cause of action alleges that the Company mislead the Investors to invest $500,000. The final cause of action alleges that officers of the Company made misrepresentations regarding the value of the Company’s stock, which caused David Weissberg to owe more in taxes than he was expecting.

Around November 24, 2021, a vendor of the Company filed amended suit against the Company in Florida, Case No. 2021 CA 001797, for monies allegedly owed and civil theft relating to such monies and related products and fraud in the inducement. We do not believe we owe such vendor any amount. The court has entered a default judgement against the Company for our failure to timely answer the complaint, which default has since been overturned.

Other than above, we are not aware of any pending or threatened legal proceedings in which we are involved.

ITEM 1A. RISK FACTORS

As a smaller reporting company, we are not required to provide risk factors in this Form 10-Q, however The Company has been directly impacted and has experienced moderate interruption during this challenging COVID-19 pandemic. In accordance with applicable federal and state guidelines, the Company has implemented and prioritized strict social distancing measures, good manufacturing practices, proper sanitization measures, and new manufacturing guidelines. Although several Company customers have experienced business shutdowns during the last few weeks, this has dramatically impacted our online ordering and/or initiating new direct shipment orders. Additional COVID operating requirements to insure safety, handling requirements, sanitation requirements have placed a significant burden on order processing and fulfilment.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Sales of unregistered securities during the three months ended March 31, 2022 are as follows:

From January 1, 2022 through March 31, 2022 the Company issued an aggregate of 51,282  shares of Common Stock under its Reg A-1 registration currently in effect and an additional 130,825 shares  of common stock to various consultants for services.

From January 1, 2022 through March 31, 2022 the Company issued an aggregate of 190,505  and 13,704  shares of Common Stock under various asset acquisition agreements and acquisition of property and equipment, respectively.

From January 1, 2022 through March 31, 2022 the Company issued an aggregate of 10,150  shares of Common Stock under various interest conversion agreements.

From January 1, 2022 through March 31, 2022 the Company converted 15 shares of Series A Preferred Stock to 33,345  shares of Common Stock.

With respect to the transactions noted above, each of the recipients of securities of the Company was an accredited investor, or is considered by the Company to be a “sophisticated person”, inasmuch as each of them has such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of receiving securities of the Company. No solicitation was made and no underwriting discounts were given or paid in connection with these transactions. The Company believes that the issuance of its securities as described above was exempt from registration with the Securities and Exchange Commission pursuant to Section 4(a)(2) and/or Regulation D of the Securities Act of 1933.

18

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The following exhibits are filed with this offering circular:

Exhibit	Description
3.1	Articles of Incorporation, as amended(1)
3.2	Bylaws(2)
4.1	Articles of Amendment designating Series A Preferred Stock rights, as amended(9)
4.2	Articles of Amendment designating Series B Preferred Stock rights(1)
4.3	Articles of Amendment designating Series C Preferred Stock rights(7)
4.4	Articles of Amendment designating Series D Preferred Stock rights(10)
10.1	Employment Agreement with Marco Alfonsi dated December 29, 2020(10)
10.2	Employment Agreement with Stanley L. Teeple dated December 29, 2020(10)
10.3	Employment Agreement with Pasquale Ferro dated December 29, 2020(10)
10.4	Employment Agreement with Phil Scala dated December 29, 2020(10)
10.5	Commission Agreement with Andrew Holtmeyer(10)
10.6	Employment Agreement with Bradley Lebsock(10)
10.7	Memorandum of Understanding with Sam International and ZetrOZ Systems LLC(3)
10.8	Can B̅ Corp. 2020 Incentive Stock Option Plan(8)
10.9	Arena Securities Purchase Agreement(10)
10.10	ASOF Original Issue Discount Senior Secured Convertible Promissory Note(10)
10.11	ASOF Warrant to Purchase Common Stock(10)
10.12	ASOP Original Issue Discount Senior Secured Convertible Promissory Note(10)
10.14	ASOP Warrant to Purchase Common Stock(10)
10.15	Arena Security Agreement(10)
10.16	Arena Intellectual Property Security Agreement(10)
10.17	Arena Registration Rights Agreement(10)
10.18	Arena Holding Escrow Agreement(10)
10.19	Arena Guaranty Agreement from Company Subsidiaries(10)
10.20	Amendment to 2020 ASOF Promissory Note(11)
10.21	Amendment to 2020 ASOP Promissory Note(11)
10.22	2021 Arena Securities Purchase Agreement(11)
10.23	2021 ASOF Original Issue Discount Senior Secured Convertible Promissory Note(11)
10.24	2021 ASOF Warrant to Purchase Common Stock(11)
10.25	2021 ASOP Original Issue Discount Senior Secured Convertible Promissory Note(11)
10.26	2021 ASOP Warrant to Purchase Common Stock(11)
10.27	2021 Arena Registration Rights Agreement(11)
10.28	2021 Addendum to Arena Security Agreement(11)
10.29	2021 Addendum to Arena Intellectual Property Security Agreement(11)
10.30	2021 Addendum to Arena Guaranty Agreement from Company Subsidiaries(11)
10.31	Asset Acquisition Agreement with Imbibe(10)
10.32	Equipment Acquisition Agreement with TWS(12)
10.33	Promissory Note to TWS(12)
10.34	Asset Purchase Agreement with MCB(12)

19

10.35	Commercial Lease with Makers Developments LLC(13)
10.36	Single-Tenant NNN Lease Agreement with CS2 Real Estate Holdings, LLC(13)
10.37	Commercial Lease with Red Road Business Park(13)
10.38	Asset Acquisition Agreement with various Sellers (Botanical Biotech)(10)
10.39	PrimeX Distribution Agreement(15)
10.40	American Development Partners development agreement(15)
10.41	Mast Hill Securities Purchase and Related Agreements(14)
10.42	Blue Lake Partners Securities Purchase and Related Agreements(14)
10.43	Blue Lake Partners Securities Purchase and Related Agreements(16)
10.44	Extension and Amendment to Arena Transactional Documents(16)
14.1	Code of Ethics(1)
21.1	List of Subsidiaries(10)
31.1	Chief Executive Officer certification under Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer certification under Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation
101.DEF	Inline XBRL Taxonomy Extension Definition
101.LAB	Inline XBRL Taxonomy Extension Labels
101.PRE	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit)

(1)	Filed with the Annual Report on Form 10-K filed with the SEC on April 2, 2020 and incorporated herein by reference.
(2)	Filed with the Form S-1 Registration Statement filed with the SEC on December 2, 2015 and incorporated herein by reference.
(3)	Filed with the Current Report on Form 8-K filed with the SEC on January 30, 2019 and incorporated herein by reference.
(4)	Filed with the Current Report on Form 8-K filed with the SEC on December 6, 2019 and incorporated herein by reference.
(5)	Filed with the Current Report on Form 8-K filed with the SEC on February 18, 2020 and incorporated herein by reference.
(6)	Filed with the Current Report on Form 8-K filed with the SEC on January 15, 2019 and incorporated herein by reference.
(7)	Filed with the Form 1-A/A, Part II, filed with the SEC on July 17, 2020 and incorporated herein by reference.
(8)	Filed with the Form 1-A POS, Part II, filed with the SEC on September 11, 2020 and incorporated herein by reference.
(9)	Filed with the Current Report on Form 8-K filed with the SEC on November 23, 2020 and incorporated herein by reference.
(10)	Filed with the Annual Report on Form 10-K filed with the SEC on April 15, 2022 and incorporated herein by reference.
(11)	Filed with the Quarterly Report on Form 10-Q filed with the SEC on May 21, 2021 and incorporated herein by reference.
(12)	Filed with the Current Report on Form 8-K filed with the SEC on August 17, 2021 and incorporated herein by reference.
(13)	Filed with the Current Report on Form 8-K filed with the SEC on September 1, 2021 and incorporated herein by reference.
(14)	Filed with the Current Report on Form 8-K filed with the SEC on March 31, 2022 and incorporated herein by reference.
(15)	Filed with the Form 10-K filed with the SEC on April 15, 2022 and incorporated herein by reference.
(16)	Filed with the Current Report on Form 8-K filed with the SEC on April 29, 2022 and incorporated herein by reference.

20

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.

	Can B Corp.
Date: May 17, 2022	By:	/s/ Marco Alfonsi
		Marco Alfonsi,
		Chief Executive Officer
Date: May 17, 2022	By:	/s/ Stanley L. Teeple
		Stanley L. Teeple,
		Chief Financial Officer

21

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Marco Alfonsi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Can B Corp.

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 quarterly 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 controls 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 quarterly 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;
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. 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 function):

a)	all significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.

Dated: May 17, 2022	By:	/s/ Marco Alfonsi
		Marco Alfonsi,
		Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Stanley L. Teeple, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Can B Corp.;

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 quarterly 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 controls 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 quarterly 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;
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. 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 function):

a)	all significant deficiencies and material weaknesses in the design or operation of internal controls 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 controls over financial reporting.

Dated: May 17, 2022	By:	/s/ Stanley L. Teeple
		Stanley L. Teeple,
		Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Can B Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Marco Alfonsi, Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 17, 2022	By:	/s/ Marco Alfonsi
		Marco Alfonsi
		Chief Executive Officer
		(Principal Executive Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION 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 Can B Corp. (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Marco Alfonsi, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 17, 2022	By:	/s/ Stanley L. Teeple
		Stanley L. Teeple,
		Chief Financial Officer
		(Principal Financial Officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 11, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	333-208293
Entity Registrant Name	Can B Corp.
Entity Central Index Key	0001509957
Entity Tax Identification Number	20-3624118
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	960 South Broadway
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Hicksville
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11801
City Area Code	516
Local Phone Number	595-9544
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,325,814

XML

Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 114,992	$ 449,001
Accounts receivable, less allowance for doubtful accounts of $547,241 and $547,241, respectively	4,438,286	3,646,677
Inventory	3,087,338	2,553,438
Note receivable		2,898
Prepaid expenses		1,625
Total current assets	7,640,616	6,653,639
Property and equipment, net	6,792,188	7,052,926
Other assets:
Deposits	165,787	165,787
Intangible assets, net	376,486	369,015
Operating lease right-of-use-asset, net	2,009,212	2,220,134
Other noncurrent assets	13,139	13,139
Total other assets	2,564,624	2,768,075
Total assets	16,997,428	16,474,640
Current liabilities:
Accounts payable	2,153,587	1,163,284
Accrued expenses	157,343	2,407,528
Due to related party	210,434	218,273
Notes and loans payable, net	6,063,315	4,865,749
Warrant liabilities	195,678
Operating lease liability - current	809,010	808,223
Total current liabilities	9,589,367	9,463,057
Long-term liabilities:
Operating lease liability - noncurrent	1,159,867	1,392,068
Total long-term liabilities	1,159,867	1,392,068
Total liabilities	10,749,234	10,855,125
Commitments and contingencies (Note 14)
Stockholders’ equity:
Common stock, no par value; 1,500,000,000 shares authorized, 3,264,566 and 2,834,755 issued and outstanding at March 31, 2022 and December 31, 2021, respectively	76,219,018	49,676,847
Common stock issuable, no par value; 21,547 and 0 shares at March 31, 2022 and December 31, 2021, respectively	119,586
Treasury stock	(572,678)	(572,678)
Additional paid-in capital	6,206,822	5,635,003
Accumulated deficit	(81,251,556)	(77,766,659)
Total stockholders’ equity	6,248,194	5,619,515
Total liabilities and stockholders’ equity	16,997,428	16,474,640
Series A Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	5,320,000	28,440,000
Series B Preferred Stock [Member]
Stockholders’ equity:
Preferred stock
Series C Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	207,000	207,000
Series D Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	$ 2	$ 2

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 547,241	$ 547,241
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	3,264,566	2,834,755
Common stock, shares outstanding	3,264,566	2,834,755
Common stock, issuable no par value	$ 0	$ 0
Common stock, issuable shares	21,547	0
Series A Preferred Stock [Member]
Preferred stock, shares authorized	20	20
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares issued	5	20
Preferred stock, shares outstanding	5	20
Series B Preferred Stock [Member]
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, par value	$ 0.001	$ 0.001
Series C Preferred Stock [Member]
Preferred stock, shares authorized	2,000	2,000
Preferred stock, shares issued	23	23
Preferred stock, shares outstanding	23	23
Preferred stock, par value	$ 0.001	$ 0.001
Series D Preferred Stock [Member]
Preferred stock, shares authorized	4,000	4,000
Preferred stock, shares issued	1,950	1,950
Preferred stock, shares outstanding	1,950	1,950
Preferred stock, par value	$ 0.001	$ 0.001

XML

Consolidated Statement of Operations - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Total revenues	$ 1,860,320	$ 306,940
Cost of revenues	1,190,330	76,795
Gross profit	669,990	230,145
Operating expenses	3,861,997	2,022,679
Loss from operations	(3,192,007)	(1,792,534)
Other income (expense):
Other income		5,564
Change in fair value of warrant liabilities	29,337
Interest expense	(322,227)	(392,787)
Other expense	(292,890)	(387,223)
Loss before provision for income taxes	(3,484,897)	(2,179,757)
Provision for (benefit from) income taxes		125
Net loss	$ (3,484,897)	$ (2,179,882)
Loss per share - basic and diluted	$ (1.10)	$ (3.58)
Weighted average shares outstanding - basic and diluted	3,154,004	608,797
Product Sales [Member]
Revenues
Total revenues	$ 1,310,396	$ 243,695
Service Revenue [Member]
Revenues
Total revenues	$ 549,924	$ 63,245

XML

Consolidated Statement of Stockholders' Equity - USD ($)	Series A Preferred Stock [Member] Preferred Stock [Member]	Series B Preferred Stock [Member] Preferred Stock [Member]	Series C Preferred Stock [Member] Preferred Stock [Member]	Series D Preferred Stock [Member] Preferred Stock [Member]	Common Stock [Member]	Common stock issuable [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2020	$ 28,440,000		$ 5,607,000		$ 30,874,270	$ 0	$ (572,678)	$ 2,724,689	$ (65,597,264)	$ 1,476,017
Beginning balance at Dec. 31, 2020	20		623		369,639		36,248
Issuance of common stock for services rendered					$ 66,135	0				66,135
Issuance of common stock for services rendered, shares					8,717
Issuance of common stock for asset acquisition					$ 137,673	0				137,673
Issuance of common stock for asset acquisition, shares					23,670
Sale of common stock					$ 2,866,000	0				2,866,000
Sale of common stock, shares					382,133
Conversion of Series C preferred stock to common stock			$ (1,350,000)		$ 1,350,000	0
Conversion of Series C preferred stock to common stock, shares			(150)		250,000
Net loss						0			(2,179,882)	(2,179,882)
Issuance of common stock in lieu of note repayments					$ 537,748	0				537,748
Issuance of common stock in lieu of note repayments, shares					77,017
Issuance of Series D preferred stock				$ 2		0				2
Issuance of Series D preferred stock, shares				1,950
Ending balance at Mar. 31, 2021	$ 28,440,000		$ 4,257,000	$ 2	$ 35,831,826	0	$ (572,678)	2,724,689	(67,777,146)	2,903,693
Ending balance at Mar. 31, 2021	20		473	1,950	1,111,177		36,248
Beginning balance at Dec. 31, 2021	$ 28,440,000		$ 207,000	$ 2	$ 49,676,847		$ (572,678)	5,635,003	(77,766,659)	5,619,515
Beginning balance at Dec. 31, 2021	20		23	1,950	2,834,755		36,248
Issuance of common stock for services rendered					$ 928,929	119,586				1,102,515
Issuance of common stock for services rendered, shares					130,825
Issuance of common stock for asset acquisition					$ 1,767,498					1,767,498
Issuance of common stock for asset acquisition, shares					190,505
Sale of common stock					$ 500,000					500,000
Sale of common stock, shares					51,282
Issuance of common stock in lieu of interest payments					$ 73,078					73,078
Issuance of common stock in lieu of interest payments, shares					10,150
Conversion of Series C preferred stock to common stock	$ (23,120,000)				$ 23,120,000
Conversion of Series C preferred stock to common stock, shares	(15)				33,345
Issuance of common stock for property and equipment					$ 98,666					98,666
Issuance of common stock for property and equipment, shares					13,704
Stock-based compensation								571,819		571,819
Net loss									(3,484,897)	(3,484,897)
Ending balance at Mar. 31, 2022	$ 5,320,000		$ 207,000	$ 2	$ 76,219,018	$ 119,586	$ (572,678)	$ 6,206,822	$ (81,251,556)	$ 6,248,194
Ending balance at Mar. 31, 2022	5		23	1,950	3,264,566		36,248

XML

Consolidated Statement of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities:
Net loss	$ (3,484,897)	$ (2,179,882)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	1,012,379
Depreciation	359,404	31,551
Amortization of intangible assets	10,026	43,860
Amortization of original-issue-discounts	158,815	351,535
Bad debt expense	2,898	47,452
Change in fair value of warrant liabilities	(29,337)
Stock-based interest expense	73,078
Stock-based consulting expense	1,102,515	66,135
Changes in operating assets and liabilities:
Accounts receivable	(791,609)	(73,401)
Inventory	(553,064)	13,003
Prepaid expenses	1,625	275,420
Deposits		(2,000)
Other noncurrent assets		7,347
Operating lease right-of-use asset	(20,492)	(155)
Accounts payable	985,710	(24,464)
Accrued expenses	(500,185)	(42,730)
Net cash used in operating activities	(2,094,530)	(1,486,329)
Investing activities:
Purchase of intangible assets		(177,530)
Net cash used in investing activities		(177,530)
Financing activities:
Proceeds received from notes and loans payable	1,382,300	175,000
Proceeds from issuance of Series D Preferred Stock		2
Proceeds from sale of common stock	500,000	2,932,135
Repayments of notes and loans payable	(75,250)	(224,000)
Amounts repaid to related parties, net	(7,839)
Deferred financing costs	(38,690)
Net cash provided by financing activities	1,760,521	2,883,137
(Decrease) Increase in cash and cash equivalents	(334,009)	1,219,278
Cash and cash equivalents, beginning of period	449,001	457,798
Cash and cash equivalents, end of period	114,992	1,677,076
Supplemental Cash Flow Information:
Income taxes paid		125
Interest paid	47,206
Non-cash Investing and Financing Activities:
Issuance of common stock in lieu of repayments of notes payable		537,748
Issuance of common stock for property and equipment	98,666
Issuance of common stock in asset acquisitions	1,767,498	137,673
Conversion of Series A Preferred stock to common stock	23,120,000
Debt discount associated with warrant liabilities	$ 225,015

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Organization and Description of Business

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Organization and Description of Business

Note 1 – Organization and Description of Business

Can B̅ Corp. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. On May 15, 2017, WRAP changed its name to Canbiola, Inc. On January 16, 2020 Canbiola, Inc. changed its name to Can B̅ Corp. (the “Company”, “we”, “us”, “our”, “CANB”, “Can B̅” or “Registrant”).

The Company acquired 100% of the membership interests in Pure Health Products, LLC, a New York limited liability company (“PHP” or “Pure Health Products”) effective December 28, 2018. The Company runs it manufacturing operations through PHP and holds and sells several of its brands through PHP as well. The Company’s durable equipment products, such as sam® units with and without CBD infused pads, are marketed and sold through its wholly-owned subsidiaries, Duramed Inc. (incorporated on November 29, 2018) and Duramed MI LLC (fka DuramedNJ, LLC) (incorporated on May 29, 2019) (collectively, “Duramed”). Duramed began operating on or about February 1, 2019. Most of the Company’s consumer products include hemp derived cannabidiol (“CBD”); however, the Company has just recently begun extracting cannabinol (“CBN”) and cannabigerol (“CBG”) for wholesale to third-parties looking to incorporate such compounds into their products through its wholly owned subsidiaries, Botanical Biotech, LLC (incorporated March 10, 2021), TN Botanicals, LLC and CO Botanicals LLC (both incorporated in August 2021). These three subsidiaries have also begun synthesizing Delta-8 and Delta-10 from hemp. Delta-8 and Delta-10 can produce similar, though less potent, effects as delta-9 (commonly referred to as THC); however, the legality of hemp derived Delta-8 and Delta-10 are in a gray area and considered a potential loophole at this point due to the 2018 hemp bill. The Company’s other subsidiaries did not have operations during the year ended December 31, 2021.

The Company is in the business of promoting health and wellness through its development, manufacture and sale of products containing cannabinoids derived from hemp biomass and the licensing of durable medical devises. Can B̅’s products include oils, creams, moisturizers, isolate, gel caps, spa products, and concentrates and lifestyle products. Can B̅ develops its own line of proprietary products as well seeks synergistic value through acquisitions in the hemp industry. Can B̅ aims to be the premier provider of the highest quality hemp derived products on the market through sourcing the best raw material and offering a variety of products we believe will improve people’s lives in a variety of areas.

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Liquidity

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity

Note 2 – Liquidity

The consolidated financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in a normal course of business. As of March 31, 2022, the Company had cash and cash equivalents of $114,992 and negative working capital of $1,948,751 . For the periods ended March 31, 2022 and 2021, the Company had incurred losses of $3,484,897 and $2,179,882 , respectively. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company plans to improve its financial condition by raising capital through the sale of shares of its common stock. Also, the Company plans to expand its operation of CBD products to increase its profitability. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

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Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 3 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. Results for interim periods are not necessarily indicative of results to be expected for a full year.

The consolidated balance sheet information as of December 31, 2021 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). The interim consolidated financial statements contained herein should be read in conjunction with the 2021 Form 10-K.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Principles of Consolidation

The unaudited consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Covid-19

Commencing in December 2019, the novel strain of coronavirus (“COVID-19”) began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition and/or results of operations is uncertain.

In response to COVID-19, the Company put into place certain restrictions, requirements and guidelines to protect the health of its employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of its employees, the Company’s daily execution has evolved into a largely virtual model. The Company plans to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that it determines to be in the interests of its employees, customers, and partners.

Management Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2021 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.

Significant Accounting Policies

The Company’s significant accounting policies are described in “Note 3: Summary of Significant Accounting Policies” of our 2021 Form 10-K.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Segment reporting

As of March 31, 2022, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company’s business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company’s previously reported net loss.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4 – Fair Value Measurements

The carrying value and fair value of the Company’s financial instruments are as follows:

March 31, 2022
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	195,678	$	195,678

As of December 31, 2021
		Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	—	$	—

The fair value of the warrants outstanding was estimated using the Black-Scholes model. The application of the Black-Scholes model requires the use of a number of inputs and significant assumptions including volatility. The following reflects the inputs and assumptions used:

As of
		March 31, 2022		December 31, 2021
Stock price	$	5.55		N/A
Exercise price	$	6.40		N/A
Remaining term (in years)		0.98		N/A
Volatility		110	%	N/A
Risk-free rate		1.63	%	N/A
Expected dividend yield		—	%	—

The warrant liabilities will be remeasured at each reporting period with changes in fair value recorded in other income (expense), net on the consolidated statements of operations. The change in fair value of the warrant liabilities was as follows:

Warrant Liabilities
Estimated fair value at March 22, 2022	$	225,015
Change in fair value		(29,337	)
Estimated fair value at March 31, 2022	$	195,678

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

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Asset Acquisitions

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Asset Acquisitions

Note 5 – Asset Acquisitions

Botanical Biotech Asset Acquisition

On March 11, 2021, Company entered into an Asset Acquisition Agreement, which was fully executed on March 17, 2021, with multiple sellers (each, a “Seller” and, collectively, the “Sellers”), pursuant to which the Sellers agreed to sell certain assets to Company, and to transfer such assets to Botanical Biotech, LLC, a newly-formed, wholly-owned subsidiary of the Company (“Transferee” or “BB”). The assets purchased (“BB Assets”) include certain materials and manufacturing equipment, marketing or promotional designs, brochures, advertisements, concepts, literature, books, media rights, rights against any other person or entity in respect of any of the foregoing and all other promotional properties, in each case primarily used, developed or acquired by the Sellers for use in connection with the ownership and operation of the BB Assets. In exchange for the BB Assets the Company will pay the Seller a maximum of $355,057, payable half in the form of cash or cash equivalent and half in the form of restricted shares of common stock of the Company (the “Shares”) at a price per Share equal to the average closing price of the common stock of the Company during the ten (10) consecutive trading days immediately preceding the closing. The Company has agreed to indemnify the Sellers for certain breaches of covenants, representations and warranties and for claims relating to the BB Assets following closing.

In conjunction with the BB asset acquisition, the Company entered into employment agreements with two sellers.

The Company and BB entered into an employment agreement with Lebsock dated March 11, 2021 (the “Lebsock Agreement”) pursuant to which Lebsock will serve as the President of BB for a term of three (3) years. The term of the Lebsock Agreement will automatically renew for an additional 3-year term unless other terminated by either party.

Lebsock will receive a base salary equal to $120,000 per year, subject to an annual increase of not less than 3% on each anniversary of the Lebsock Agreement during the term. The Company also agreed to issue a stock bonus to Lebsock in accordance with the Company’s Incentive Stock Option Plan (“ISOP”) in an amount of $100,000, and to pay Lebsock a defined percentage of the EBITDA for BB each calendar quarter (“Profit Split”) according to a mutually agreed performance target (“Target”). EBITDA is defined as the earnings before interest, depreciation, taxes, depreciation, and amortization and will be paid as reported by the Company’s accountant and as reviewed by the Company’s auditor. It will be accumulative on a quarter-to-quarter basis, meaning if one quarter has a negative EBITDA, it would be offset against the following quarter’s positive EBITDA distribution. Lebsock has the option to accept the Profit Split in either direct cash payment or Shares, or any combination, at Lebsock’s option. Shares would be valued at the prior 10-day closing price and issued under SEC Rule 144 restriction.

Effective March 16, 2021, BB entered into a Consulting Agreement (the “Schlosser Agreement”) with Schlosser pursuant to which Schlosser has agreed to provide consulting services to BB for a period of 3 months in exchange for compensation equal to $10,000 per month. Schlosser will also be entitled to reimbursement for certain work-related expenses. Pursuant to the Schlosser Agreement, Schlosser also agreed to assign to BB all inventions developed by Schlosser in connection with his services to BB. The Schlosser Agreement also contains certain non-compete and confidentiality provisions. Per the Acquisition Agreement, Schlosser was to receive an employment agreement similar to the Lebsock Agreement; however, BB and Schlosser elected to enter into the Schlosser Agreement instead.

CO Botanicals Asset Acquisition

On August 12, 2021, The Company and CO Botanicals LLC (“COB”), a newly-formed, wholly-owned subsidiary of the Company entered into an Equipment Acquisition Agreement (the “TWS Agreement”) with TWS Pharma, LLC,

(“TWS Pharma”) and L7 TWS Pharma, LLC (“L7 TWS” and, collectively with TWS Pharma, “TWS”). Pursuant to the TWS Agreement, COB agreed to purchase certain equipment and other assets from TWS (the “TWS Assets”) for a total purchase price equal to $5,316,774, with $1,250,000 payable via a 12-month promissory note issued by the Company to TWS Pharma with 6% simple interest and monthly payments of $100,000 due per month (the “TWS Note”), and $4,066,774 payable in shares of the Company’s common stock valued at $0.62 per share (the “TWS Shares”); provided, however, that $1,750,000 of the TWS Shares will be withheld in escrow for a period of ninety (90) days from the closing date, which will be deducted from the purchase price should the Company discover any defects or misrepresentations. The first $500,000 of payments of the TWS Note will be secured by 1,000,000 shares of the Company’s common stock to be held in escrow. During the period ending March 31, 2022, the $1,750,000 of shares held in escrow were released and issued.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

TN Botanicals Asset Acquisition

On August 13, 2021 the Company and TN Botanicals LLC (“TNB”), a newly-formed, wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “MCB Agreement”) with Music City Botanicals, LLC, pursuant to which TNB agreed to purchase certain equipment, other assets, and intellectual property from MCB (the “MCB Assets”) for a total purchase price equal to $1,394,324, with $498,259 payable in cash and $896,065 payable in shares of the Company’s common stock valued at $0.62 per share (the “MCB Shares”).

Imbibe Health Solutions Asset Acquisition

On February 22, 2021, Can B̅ Corp. (the “Company”) entered into a material definitive agreement (“Acquisition Agreement”) with Imbibe Health Solutions, LLC, a Delaware limited liability company (“Imbibe”), pursuant to which Imbibe agreed to sell certain of its assets to the Company. The assets to be purchased (“Assets”) include the intellectual property rights and other intangible assets relating to its branded products containing CBD. In exchange for the Assets, the Company has agreed to pay Imbibe $120,000 in the form of shares of common stock of the Company (with standard restricted legend, the “Shares”) at a price per share equal to the average price of the common stock of the Company during the ten (10) consecutive trading days immediately preceding the closing. The transaction finalized and $102,502 worth of shares were issued on November 7, 2021 and the remaining balance of $17,498 of shares were issued during the period ending March 31, 2022.

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Inventories

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories

Note 6 – Inventories

Inventories consist of:

	March 31,		December 31,
	2022		2021
Raw materials	$	1,033,171	$	818,042
Finished goods		2,054,167		1,735,396
Total	$	3,087,338	$	2,553,438

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Property and Equipment

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 7 – Property and Equipment

Property and equipment consist of:

	March 31,			December 31,
	2022			2021
Furniture and fixtures	$	21,724		$	21,724
Office equipment		12,378			12,378
Manufacturing equipment		7,117,188			7,018,522
Medical equipment		776,396			776,396
Leasehold improvements		26,902			26,902
Total		7,954,588			7,855,922
Accumulated depreciation		(1,162,400	)		(802,996	)
Net	$	6,792,188		$	7,052,926

Depreciation expense related to property and equipment was $359,404 and $31,551 for the three-month periods ending March 31, 2022 and 2021, respectively.

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Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 8 – Intangible Assets

Intangible assets consist of:

	March 31,			December 31,
	2022			2021
Technology, IP and patents	$	435,500		$	418,003
Total		435,500			418,003
Accumulated amortization		(59,014	)		(48,988	)
	$	376,486		$	369,015

Amortization expense was $10,026 and $43,860 for the three months ended March 31, 2022 and 2021, respectively.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Amortization expense for the balance of 2022, and for each of the next five years and thereafter is estimated to be as follows:

Nine months ended December 31, 2022	$	32,640
Fiscal year 2023		43,520
Fiscal year 2024		43,520
Fiscal year 2025		43,520
Fiscal year 2026		43,520
Thereafter		169,766
	$	376,486

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Notes and Loans Payable

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Notes and Loans Payable

Note 9 – Notes and Loans Payable

Convertible Promissory Notes

In December 2020, the Company entered into a convertible promissory note (“ASOP Note I”) with Arena Special Opportunities Partners I, LP (“ASOP”). The principal balance of the note is $2,675,239 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 3,426,280 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 3,426,280 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note I. The principal balance outstanding at March 31, 2022 was $2,400,997.

In December 2020, the Company entered into a convertible promissory note (“ASOF Note I”) with Arena Special Opportunities Fund, LP (“ASOF”). The principal balance of the note is $102,539 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOF convertible promissory note was issued with 131,325 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 131,325 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note I. The principal balance outstanding at March 31, 2022 was $87,773.

In May 2021, the Company entered into a convertible promissory note (“ASOP Note II”) with Arena Special Opportunities Partners I, LP. The principal balance of the note is $1,193,135 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 1,529,670 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 1,529,670 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOP are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOP Note II. The principal balance outstanding at March 31, 2022 was $1,073,250.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

In May 2021, the Company entered into a convertible promissory note (“ASOF Note II”) with Arena Special Opportunities Fund, LP. The principal balance of the note is $306,865 and it is to be utilized for working capital purposes. The note matures on January 31, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the ASOP convertible promissory note was issued with 393,417 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 393,417 shares of the Company’s common stock at an exercise price of $0.45 per share. The common stock purchase warrants issued to ASOF are considered derivatives, but satisfied the criteria for classification as equity instruments, and were bifurcated from the host contract - convertible promissory note and recorded in equity at their relative fair values with a corresponding debt discount recorded to ASOF Note II. The principal balance outstanding at March 31, 2022 was $276,750.

The maturity dates for the above notes were extended to April 30, 2022 on April 14, 2022 in exchange for the Company’s promise to pay the holders $300,000. The holders agreed to allow the Company to extend the notes for two additional 30-day periods for $100,000 per extension. The holders also waived certain defaults under the notes. The Company has since elected to extend the maturity date to May 31, 2022 for the promise to pay an additional $100,000.

In March 2022, the Company entered into a convertible promissory note (“BL Note”) with Blue Lake Partners, LLC (“BL”). The principal balance of the note is $250,000 and it is to be utilized for working capital purposes. The note matures on March 22, 2023 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the BL Note was issued with 39,062 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 39,062 shares of the Company’s common stock at an exercise price of $6.40 per share. The common stock purchase warrants issued to BL are considered derivatives and did not satisfy the criteria for classification as equity instruments and were bifurcated from the host contract - convertible promissory note and recorded as a liability at fair value with a corresponding debt discount recorded to the BL Note with subsequent changes in fair values recognized in the consolidated statement of operations at each reporting date. Aggregate amortization of the original issue discount for the period ended March 31, 2022 and 2021 was approximately $0 and $0, respectively. The principal balance outstanding at March 31, 2022 was $250,000.

In March 2022, the Company entered into a convertible promissory note (“MH Note”) with Mast Hill Fund, LP (“MH”). The principal balance of the note is $350,000 and it is to be utilized for working capital purposes. The note matures on March 22, 2023 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. In addition, the BL Note was issued with 39,062 common stock warrants. The common stock purchase warrants entitle the holder to purchase an aggregate of up to 39,062 shares of the Company’s common stock at an exercise price of $6.40 per share. The common stock purchase warrants issued to BL are considered derivatives and did not satisfy the criteria for classification as equity instruments and were bifurcated from the host contract - convertible promissory note and recorded as a liability at fair value with a corresponding debt discount recorded to the BL Note with subsequent changes in fair values recognized in the consolidated statement of operations at each reporting date. Aggregate amortization of the original issue discount for the period ended March 31, 2022 and 2021 was approximately $0 and $0, respectively. The principal balance outstanding at March 31, 2022 was $350,000.

In February 2022, the Company entered into a convertible promissory note (“Tysadco Note”) with Tysadco Partners, LLC (“Tysadco”). The principal balance of the note is $450,000 and it is to be utilized for working capital purposes. The note matures on July 25, 2022 and all principal, accrued and unpaid interest is due at maturity at a rate of 12% per annum. The conversion options contained in the convertible promissory note were evaluated for derivative accounting under ASC 815, Derivatives and Hedging, and determined not to be considered a derivative and therefore has been recorded in liabilities as part of the convertible promissory note and not bifurcated. The principal balance outstanding at March 31, 2022 was $350,000 and the remaining $100,000 of proceeds was received subsequently in April 2022.

TWS Note

On August 12, 2021, pursuant to an Equipment Acquisition Agreement, the Company entered into a twelve-month promissory note of $1,250,000 with payments of $100,000 per month and interest at 6% (See Note 5). As of March 31, 2022, the total amount outstanding was $1,050,000.

Other Loans

On November 18, 2021, the Company entered into a $100,000 unsecured promissory note agreement with a lender. The promissory note accrues interest at a rate of 10% per annum and is due within twelve months or due on demand subsequently to any major funding received by the Company in excess of $3,000,000. As of March 31, 2022 the total amount outstanding was $100,000.

On February 2, 2022, the Company entered into a Future Receivable Sale and Purchase Agreement with a Purchaser. Pursuant to the terms of the agreement, the Company sold an aggregate of $136,000 of future receivables for a purchase amount of $100,000. The aggregate principal amount is payable in weekly installments totaling 2,833 until such time the obligation is fully satisfied. As of March 31, 2022 the total amount outstanding was $116,167.

On February 11, 2022, the Company entered into a $150,000 unsecured promissory note agreement with a lender. The promissory note accrues interest at a rate of 16% per annum and is due within six months or due on demand subsequently to any major funding received by the Company in excess of $2,000,000. As of March 31, 2022 the total amount outstanding was $150,000.

On March 3, 2022, the Company entered into a Receivable Purchase and Sale Agreement with a Buyer. Pursuant to the terms of the agreement, the Company sold an aggregate of $350,00 of future receivables for a purchase amount of $250,000. The aggregate principal amount is payable in daily installments totaling 2,917 until such time the obligation is fully satisfied. As of March 31, 2022 the total amount outstanding was $182,083.

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Stockholders’ Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders’ Equity

Note 10 – Stockholders’ Equity

Preferred Stock

Each share of Series A Preferred Stock is convertible into 218 shares of CANB common stock and is entitled to 4,444 votes. All Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. In the event of a Liquidation Event, whether voluntary or involuntary, each holder may elect (i) to receive, in preference to the holders of Common Stock, a one-time liquidation preference on a per-share amount equal to the per-share value of preferred shares on the issuance date, as recorded in the Company’s financial records, or (ii) to participate pari passu with the Common Stock on an as-converted basis. Subject to any adjustments, the Series A holders shall be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock on an as converted basis. During the three months ended March 31, 2022, the Company converted 15 shares of Series A preferred stock to 33,345 shares of common stock.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Each share of Series B Preferred Stock has the first preference to dividends, distributions and payments upon liquidation, dissolution and winding-up of the Company, and is entitled to an accrued cumulative but not compounding dividend at the rate of 5% per annum whether or not declared. After six months of the issuance date, such share and any accrued but unpaid dividends can be converted into common stock at the conversion price which is the lower of (i) $0.0101; or (ii) the lower of the dollar volume weighted average price of CANB common stock on the trading day prior to the conversion day or the dollar volume weighted average price of CANB common stock on the conversion day. The shares of Series B Preferred Stock have no voting rights.

Each share of Series C Preferred Stock has preference to payment of dividends, if and when declared by the Company, compared to shares of our common stock. Each Preferred Series C share is convertible into 25,000 shares of common stock. The shares of Series C Preferred Stock have voting rights as if fully converted.

Each share of Series D Preferred Stock has 10,000 shares of voting rights only pari passu to common shares voting with no conversion rights and no equity participation. The Company can redeem Series D Preferred Stock at any time for par value.

On February 8, 2021, the Company’s Board of Directors approved the designation of the Series D Preferred Shares and the number of shares constituting such series, and the rights, powers, preferences, privileges and restrictions relating to such series. On March 27, 2021, the Company filed an amendment to its articles of incorporation to authorize 4,000 shares of a new Series D Preferred Stock with a par value of $0.001 each. All Series D Preferred Shares shall rank senior to all shares of Common Stock of the Company with respect to liquidation preferences and shall rank pari passu to all current and future series of preferred stock, unless otherwise stated in the certificate of designation for such preferred stock. Each Series D Preferred Share shall have voting rights equal to 667 shares of Common Stock, adjustable at any recapitalization of the Company’s stock. In the event of a liquidation event, whether voluntary or involuntary, each holder shall have a liquidation preference on a per-share amount equal to the par value of such holder’s Series D Preferred Shares. The holders shall not be entitled to receive distributions made or dividends paid to the Company’s other stockholders. Except as otherwise required by law, for as long as any Series D Preferred Shares remain outstanding, the Company shall have the option to redeem any outstanding share of Series D Preferred Shares at any time for a purchase price of par value per share of Series D Preferred Shares (“Price per Share”). Should the Company desire to purchase Series D Preferred Shares, the Company shall provide the Holder with written notice and a check or cash in an amount equal to the number of shares of Series D Preferred Shares being purchased multiplied by the Price per Share. The shares of Series D Preferred Shares so purchased shall be deemed automatically cancelled and the Holder shall return the certificates for such share to the Corporation. On or around March 27, 2021, the Company issued Mr. Alfonsi, Mr. Ferro, and Mr. Teeple Series D Preferred Stock in the amount of 600 shares each and to COO Philip Scala in the amount of 150 shares, collectively representing 1,300,000 voting shares.

Common Stock

For the three months ended March 31, 2022, the Company issued an aggregate of 51,282 shares of Common Stock under its Offering Statement on Form 1-A (File No. 024-11233) (the “Regulation A Offering”).

In addition, for the three months ended March 31, 2022, the Company issued an aggregate of 190,505, 13,704, 130,825, and 10,150 of Common Stock for asset acquisitions, property and equipment, services rendered, and in lieu of interest repayments, respectively.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

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Stock Options

3 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock Options

Note 11 – Stock Options

A summary of stock options activity for the three months ended March 31, 2022 is as follows:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, January 1, 2022		377,654	$	6.11		4.46
Granted		79,013		5.10		4.77
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, March 31, 2022		456,666	$	5.93		4.31

	Option Shares			Weighted Average Grant-Date Fair Value
Non-vested options, January 1, 2022		-		$	-
Granted		79,013			7.24
Vested		(79,013	)		7.24
Forfeited		-			-
Non-vested options, March 31, 2022		-		$	-

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Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 – Income Taxes

The Company’s income tax provisions for the three months ended March 31, 2022 and 2021 reflect the Company’s estimates of the effective rates expected to be applicable for the respective full years, adjusted for any discrete events, which are recorded in the period that they occur. These estimates are reevaluated each quarter based on the Company’s estimated tax expense for the full year. The estimated effective tax rate includes the impact of valuation allowances in various jurisdictions.

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Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Note 13 – Related Party Transactions

For the three months ended March 31, 2022 and 2021, the Company paid fees to a service provider that is a relative of a director for professional services in the amount of $0 and $9,900, respectively. At March 31, 2022 and December 31, 2021, the Company had outstanding payables to the aforementioned service provider of $0 and $5,000, respectively.

At March 31, 2022, the Company has amounts due to a director of the Company of approximately $210,434 which are expected to be repaid in the next twelve months.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14 – Commitments and Contingencies

Lease Agreements

The Company leases office space in numerous medical facilities offices under month-to-month agreements.

Rent expense for the three months ended March 31, 2022 and 2021 was $203,017 and $71,448, respectively.

At March 31, 2022, the future minimum lease payments under non-cancellable operating leases were:

Nine months ended December 31, 2022	$	809,010
Fiscal year 2023		832,893
Fiscal year 2024		326,974
	$	1,968,877

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 15 – Subsequent Events

On April 13, 2022, the Company entered into an Amendment to Transactional Documents with Arena Special Opportunities Partners I, LP, a Delaware limited partnership (the “ASOP”) and Arena Special Opportunities Fund, LP, a Delaware limited partnership (“ASOF” and, collectively with ASOP, the “Holders”) whereby the holders extended the maturity date of certain previously issued promissory notes to April 30, 2022 in exchange for $300,000 and agreed to grant two additional extensions for 30 days each, each for an additional $100,000 per extension. Holders also waived certain defaults under the notes and granted consents required under the notes. The Company has elected to extend the maturity of the notes to May 31, 2022, for an additional $100,000 to be paid from future offering proceeds.

On April 24, 2022, the Company entered into securities purchase agreements and related agreements with an investor for the sale of $150,000 in a convertible promissory note and warrants.

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements are issued and as of that date, except as reported below, there were no subsequent events that required adjustment or disclosure in the consolidated financial statements.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, these interim consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of the management of the Company, as defined below, these unaudited consolidated financial statements include all adjustments necessary to present fairly the information set forth therein. Results for interim periods are not necessarily indicative of results to be expected for a full year.

The consolidated balance sheet information as of December 31, 2021 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“2021 Form 10-K”). The interim consolidated financial statements contained herein should be read in conjunction with the 2021 Form 10-K.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Principles of Consolidation

Principles of Consolidation

The unaudited consolidated financial statements contained herein include the accounts of Can B Corp. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Covid-19

Covid-19

Commencing in December 2019, the novel strain of coronavirus (“COVID-19”) began spreading throughout the world, including the first outbreak in the US in February 2020. On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. COVID-19 has disrupted and continues to significantly disrupt local, regional, and global economies and businesses. The COVID-19 outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers, employees and vendors, all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the Company’s financial condition and/or results of operations is uncertain.

In response to COVID-19, the Company put into place certain restrictions, requirements and guidelines to protect the health of its employees and clients, including requiring that certain conditions be met before employees return to the Company’s offices. Also, to protect the health and safety of its employees, the Company’s daily execution has evolved into a largely virtual model. The Company plans to continue to monitor the current environment and may take further actions that may be required by federal, state or local authorities or that it determines to be in the interests of its employees, customers, and partners.

Management Estimates

Management Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses in those financial statements. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to revenue recognition, inventory, goodwill, intangible assets and other long-lived assets, income taxes and deferred taxes. Descriptions of these policies are discussed in the Company’s 2021 Form 10-K. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from those estimates and assumptions. Significant changes, if any, in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.

Significant Accounting Policies

Significant Accounting Policies

The Company’s significant accounting policies are described in “Note 3: Summary of Significant Accounting Policies” of our 2021 Form 10-K.

Can B̅ Corp. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2022

Segment reporting

Segment reporting

As of March 31, 2022, the Company reports operating results and financial data in one operating and reportable segment. The Chief Executive Officer, who is the chief operating decision maker, manages the Company as a single profit center in order to promote collaboration, provide comprehensive service offerings across the entire customer base, and provide incentives to employees based on the success of the organization as a whole. Although certain information regarding selected products or services is discussed for purposes of promoting an understanding of the Company’s business, the chief operating decision maker manages the Company and allocates resources at the consolidated level.

Reclassifications

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company’s previously reported net loss.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Carrying Value and Fair value

The carrying value and fair value of the Company’s financial instruments are as follows:

March 31, 2022
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	195,678	$	195,678

As of December 31, 2021
		Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	—	$	—

Schedule of Fair Value of the Warrants Outstanding

The fair value of the warrants outstanding was estimated using the Black-Scholes model. The application of the Black-Scholes model requires the use of a number of inputs and significant assumptions including volatility. The following reflects the inputs and assumptions used:

As of
		March 31, 2022		December 31, 2021
Stock price	$	5.55		N/A
Exercise price	$	6.40		N/A
Remaining term (in years)		0.98		N/A
Volatility		110	%	N/A
Risk-free rate		1.63	%	N/A
Expected dividend yield		—	%	—

Schedule of Change in Fair Value of the Warrant Liabilities

The warrant liabilities will be remeasured at each reporting period with changes in fair value recorded in other income (expense), net on the consolidated statements of operations. The change in fair value of the warrant liabilities was as follows:

Warrant Liabilities
Estimated fair value at March 22, 2022	$	225,015
Change in fair value		(29,337	)
Estimated fair value at March 31, 2022	$	195,678

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Inventories (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of:

	March 31,		December 31,
	2022		2021
Raw materials	$	1,033,171	$	818,042
Finished goods		2,054,167		1,735,396
Total	$	3,087,338	$	2,553,438

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property and equipment consist of:

	March 31,			December 31,
	2022			2021
Furniture and fixtures	$	21,724		$	21,724
Office equipment		12,378			12,378
Manufacturing equipment		7,117,188			7,018,522
Medical equipment		776,396			776,396
Leasehold improvements		26,902			26,902
Total		7,954,588			7,855,922
Accumulated depreciation		(1,162,400	)		(802,996	)
Net	$	6,792,188		$	7,052,926

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consist of:

	March 31,			December 31,
	2022			2021
Technology, IP and patents	$	435,500		$	418,003
Total		435,500			418,003
Accumulated amortization		(59,014	)		(48,988	)
	$	376,486		$	369,015

Schedule of Estimated Amortization Expenses

Amortization expense for the balance of 2022, and for each of the next five years and thereafter is estimated to be as follows:

Nine months ended December 31, 2022	$	32,640
Fiscal year 2023		43,520
Fiscal year 2024		43,520
Fiscal year 2025		43,520
Fiscal year 2026		43,520
Thereafter		169,766
	$	376,486

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Stock Options (Tables)

3 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Stock Options Activity

A summary of stock options activity for the three months ended March 31, 2022 is as follows:

	Option Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding, January 1, 2022		377,654	$	6.11		4.46
Granted		79,013		5.10		4.77
Exercised		-		-		-
Forfeited		-		-		-
Expired		-		-		-
Outstanding, March 31, 2022		456,666	$	5.93		4.31

Schedule of Non-Vested Option Shares

	Option Shares			Weighted Average Grant-Date Fair Value
Non-vested options, January 1, 2022		-		$	-
Granted		79,013			7.24
Vested		(79,013	)		7.24
Forfeited		-			-
Non-vested options, March 31, 2022		-		$	-

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases

At March 31, 2022, the future minimum lease payments under non-cancellable operating leases were:

Nine months ended December 31, 2022	$	809,010
Fiscal year 2023		832,893
Fiscal year 2024		326,974
	$	1,968,877

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Liquidity (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 114,992		$ 449,001
Working capital	1,948,751
Net loss	$ 3,484,897	$ 2,179,882

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Schedule of Carrying Value and Fair value (Details) - USD ($)	Mar. 31, 2022	Mar. 21, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 195,678	$ 225,015
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 195,678

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Schedule of Fair Value of the Warrants Outstanding (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares
Fair Value Disclosures [Abstract]
Stock price	$ 5.55
Exercise price	$ 6.40
Remaining term (in years)	11 months 23 days
Volatility	110.00%
Risk free rate	1.63%
Expected dividend yield

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Schedule of Change in Fair Value of the Warrant Liabilities (Details) - USD ($)		3 Months Ended
	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Estimated fair value Beginning	$ 225,015
Change in fair value	(29,337)	(29,337)
Estimated fair value Ending	$ 195,678	$ 195,678

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Asset Acquisitions (Details Narrative)	Aug. 13, 2021 USD ($) $ / shares	Aug. 12, 2021 USD ($) $ / shares	Mar. 17, 2021 USD ($) Integer	Mar. 16, 2021 USD ($)	Mar. 11, 2021 USD ($)	Feb. 22, 2021 USD ($)
President [Member] | Company's Incentive Stock Option Plan [Member]
Stock bonus					$ 100,000
Lebsock Agreement [Member] | President [Member]
Base salary per year					$ 120,000
Schlosser Agreement [Member]
Consulting fees				$ 10,000
Equipment Acquisition Agreement [Member]
Purchase price		$ 5,316,774
Long-term Debt, Gross		$ 1,250,000
Debt interest rate		6.00%
Debt monthly payments due		$ 100,000
Shares Issued, Price Per Share | $ / shares		$ 0.62
Equipment Acquisition Agreement [Member] | Common Stock [Member]
Long-term Debt, Gross		$ 4,066,774
Debt Instrument, Description		that $1,750,000 of the TWS Shares will be withheld in escrow for a period of ninety (90) days from the closing date, which will be deducted from the purchase price should the Company discover any defects or misrepresentations. The first $500,000 of payments of the TWS Note will be secured by 1,000,000 shares of the Company’s common stock to be held in escrow. During the period ending March 31, 2022, the $1,750,000 of shares held in escrow were released and issued
Asset Purchase Agreement [Member]
Purchase price	$ 1,394,324
Long-term Debt, Gross	498,259
Asset Purchase Agreement [Member] | Common Stock [Member]
Long-term Debt, Gross	$ 896,065
Shares Issued, Price Per Share | $ / shares	$ 0.62
Acquisition Agreement [Member] | Imbibe Health Solutions Asset Acquisition [Member]
Payments to acquire assets						$ 120,000
Maximum [Member] | Asset Acquisition Agreement [Member] | Botanical Biotech, LLC, [Member]
Payments to acquire assets			$ 355,057
Number of trading days | Integer			10
Maximum [Member] | Lebsock Agreement [Member] | President [Member]
Percentage of annual increase					3.00%

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Schedule of Inventories (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 1,033,171	$ 818,042
Finished goods	2,054,167	1,735,396
Total	$ 3,087,338	$ 2,553,438

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Summary of Property, Plant and Equipment (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Furniture and fixtures	$ 21,724	$ 21,724
Office equipment	12,378	12,378
Manufacturing equipment	7,117,188	7,018,522
Medical equipment	776,396	776,396
Leasehold improvements	26,902	26,902
Total	7,954,588	7,855,922
Accumulated depreciation	(1,162,400)	(802,996)
Net	$ 6,792,188	$ 7,052,926

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Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 359,404	$ 31,551

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Schedule of Intangible Assets (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Technology, IP and patents	$ 435,500	$ 418,003
Total	435,500	418,003
Accumulated amortization	(59,014)	(48,988)
Intangible assets, net	$ 376,486	$ 369,015

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Schedule of Estimated Amortization Expenses (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Nine months ended December 31, 2022	$ 32,640
Fiscal year 2023	43,520
Fiscal year 2024	43,520
Fiscal year 2025	43,520
Fiscal year 2026	43,520
Thereafter	169,766
Intangible assets, net	$ 376,486	$ 369,015

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Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 10,026	$ 43,860

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Notes and Loans Payable (Details Narrative) - USD ($)									1 Months Ended				3 Months Ended		12 Months Ended
	Apr. 30, 2022	Apr. 14, 2022	Mar. 03, 2022	Feb. 11, 2022	Feb. 02, 2022	Feb. 02, 2022	Nov. 18, 2021	Aug. 12, 2021	Mar. 31, 2022	Feb. 28, 2022	May 31, 2021	Dec. 31, 2020	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2021
Short-Term Debt [Line Items]
Repayments of related party debt													$ 7,839
Amortization of debt discount premium													158,815	$ 351,535
Notes Payable									$ 0				0			$ 5,000
Equipment Acquisition Agreement [Member]
Short-Term Debt [Line Items]
Total notes and loans payable								$ 1,250,000
Debt instrument, interest rate								6.00%
Debt instrument, face amount									1,050,000				1,050,000
Debt monthly payments due								$ 100,000
Unsecured Promissory Note Agreement [Member]
Short-Term Debt [Line Items]
Proceeds received from debt							$ 3,000,000
Unsecured Promissory Note Agreement [Member] | Lender [Member]
Short-Term Debt [Line Items]
Debt instrument, interest rate				16.00%
Debt instrument, face amount									150,000				150,000
Unsecured promissory note				$ 150,000
Proceeds received from debt				$ 2,000,000
Unsecured Promissory Note Agreement [Member] | Lender [Member]
Short-Term Debt [Line Items]
Debt instrument, face amount									100,000				100,000
Unsecured promissory note							$ 100,000
Interest rate							10.00%
Future receivable sale and purchase agreement [Member]
Short-Term Debt [Line Items]
Debt instrument, face amount			$ 182,083						116,167				$ 116,167
Aggregate future receivables					$ 136,000	$ 136,000
Proceeds from collection receivables			250,000			$ 100,000
Aggregate principal amount					2,833
Receivable Purchase and Sale Agreement [Member]
Short-Term Debt [Line Items]
Aggregate future receivables			$ 350.00
Common Stock [Member]
Short-Term Debt [Line Items]
Number of shares issued													51,282	382,133
Common Stock [Member] | Equipment Acquisition Agreement [Member]
Short-Term Debt [Line Items]
Total notes and loans payable								$ 4,066,774
ASOP Note I [Member] | Arena Special Opportunities Partners I, LP [Member]
Short-Term Debt [Line Items]
Total notes and loans payable												$ 2,675,239			$ 2,675,239
Debt maturity date												Jan. 31, 2022
Debt instrument, interest rate												12.00%			12.00%
Number of shares issued															3,426,280
Warrants exercise price												$ 0.45			$ 0.45
Debt instrument, face amount									2,400,997				$ 2,400,997
ASOP Note I [Member] | Arena Special Opportunities Partners I, LP [Member] | Warrant [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock												3,426,280			3,426,280
ASOF Note I [Member] | Arena Special Opportunities Fund, LP [Member]
Short-Term Debt [Line Items]
Debt maturity date												Jan. 31, 2022
Debt instrument, interest rate												12.00%			12.00%
Number of shares issued															131,325
Warrants exercise price												$ 0.45			$ 0.45
Debt instrument, face amount									87,773			$ 102,539	87,773		$ 102,539
ASOF Note I [Member] | Arena Special Opportunities Fund, LP [Member] | Common Stock [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock												131,325			131,325
ASOP Note II [Member] | Arena Special Opportunities Partners I, LP [Member]
Short-Term Debt [Line Items]
Debt maturity date											Jan. 31, 2022
Debt instrument, interest rate											12.00%
Number of shares issued											1,529,670
Warrants exercise price											$ 0.45
Debt instrument, face amount											$ 1,193,135
Principal balance outstanding													1,073,250
ASOP Note II [Member] | Arena Special Opportunities Partners I, LP [Member] | Warrant [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock											1,529,670
ASOF Note II [Member] | Subsequent Event [Member]
Short-Term Debt [Line Items]
Debt maturity date	Apr. 30, 2022
ASOF Note II [Member] | Subsequent Event [Member] | Holders [Member]
Short-Term Debt [Line Items]
Repayments of related party debt		$ 300,000
Debt instrument, payment terms		The holders agreed to allow the Company to extend the notes for two additional 30-day periods for $100,000 per extension
ASOF Note II [Member] | Arena Special Opportunities Partners I, LP [Member]
Short-Term Debt [Line Items]
Debt maturity date											Jan. 31, 2022
Warrants exercise price											$ 0.45
ASOF Note II [Member] | Arena Special Opportunities Fund, LP [Member]
Short-Term Debt [Line Items]
Debt instrument, interest rate											12.00%
Number of shares issued											393,417
Debt instrument, face amount									$ 276,750		$ 306,865		$ 276,750
ASOF Note II [Member] | Arena Special Opportunities Fund, LP [Member] | Warrant [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock											393,417
BL Note [Member] | Blue lake partners LLC [Member]
Short-Term Debt [Line Items]
Debt maturity date									Mar. 22, 2023
Debt instrument, interest rate									12.00%				12.00%
Number of shares issued									39,062
Warrants exercise price									$ 6.40				$ 6.40
Debt instrument, face amount									$ 250,000				$ 250,000
Principal balance outstanding													250,000
Amortization of debt discount premium													$ 0	$ 0
BL Note [Member] | Blue lake partners LLC [Member] | Warrant [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock									39,062				39,062
MH Note [Member] | Mast hill fund LP [Member]
Short-Term Debt [Line Items]
Debt instrument, interest rate									12.00%				12.00%
Number of shares issued									39,062
Warrants exercise price									$ 6.40				$ 6.40
Debt instrument, face amount									$ 350,000				$ 350,000
Amortization of debt discount premium													$ 0	$ 0
MH Note [Member] | Mast hill fund LP [Member] | Warrant [Member]
Short-Term Debt [Line Items]
Warrants to purchase common stock									39,062				39,062
Tysadco Note [Member] | Tysadco partners LLC [Member]
Short-Term Debt [Line Items]
Debt maturity date										Jul. 25, 2022
Debt instrument, interest rate										12.00%
Debt instrument, face amount									$ 350,000	$ 450,000			$ 350,000
Tysadco Note [Member] | Tysadco partners LLC [Member] | Subsequent Event [Member]
Short-Term Debt [Line Items]
Notes Payable	$ 100,000

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Stockholders’ Equity (Details Narrative) - USD ($)			3 Months Ended
	Mar. 27, 2021	Feb. 08, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock shares authorized			5,000,000		5,000,000
Common stock issued for property and equipment			$ 98,666
Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock			33,345
Stock issued during the period			51,282	382,133
Common stock issued for asset acquisitions			190,505	23,670
Common stock issued for property and equipment			$ 98,666
Common shares issued for services rendered			130,825	8,717
Offering [Member]
Class of Stock [Line Items]
Stock issued during the period			51,282
Common Stock One [Member]
Class of Stock [Line Items]
Common stock issued for asset acquisitions			190,505
Common stock issued for property and equipment			$ 13,704
Common shares issued for services rendered			130,825
Common shares issued for interest repayments			10,150
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, voting rights			Each share of Series A Preferred Stock is convertible into 218 shares of CANB common stock and is entitled to 4,444 votes
Number of convertible shares			4,444
Conversion of stock			15
Preferred stock shares authorized			20		20
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, voting rights			The shares of Series B Preferred Stock have no voting rights
Dividend, description			Each share of Series B Preferred Stock has the first preference to dividends, distributions and payments upon liquidation, dissolution and winding-up of the Company, and is entitled to an accrued cumulative but not compounding dividend at the rate of 5% per annum whether or not declared. After six months of the issuance date, such share and any accrued but unpaid dividends can be converted into common stock at the conversion price which is the lower of (i) $0.0101; or (ii) the lower of the dollar volume weighted average price of CANB common stock on the trading day prior to the conversion day or the dollar volume weighted average price of CANB common stock on the conversion day
Preferred stock shares authorized			500,000		500,000
Preferred stock, par or stated value per share			$ 0.001		$ 0.001
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Number of convertible shares			25,000
Preferred stock shares authorized			2,000		2,000
Preferred stock, par or stated value per share			$ 0.001		$ 0.001
Series D Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, voting rights	collectively representing 1,300,000 voting shares	Each Series D Preferred Share shall have voting rights equal to 667 shares of Common Stock, adjustable at any recapitalization of the Company’s stock. In the event of a liquidation event, whether voluntary or involuntary, each holder shall have a liquidation preference on a per-share amount equal to the par value of such holder’s Series D Preferred Shares. The holders shall not be entitled to receive distributions made or dividends paid to the Company’s other stockholders. Except as otherwise required by law, for as long as any Series D Preferred Shares remain outstanding, the Company shall have the option to redeem any outstanding share of Series D Preferred Shares at any time for a purchase price of par value per share of Series D Preferred Shares (“Price per Share”)	Each share of Series D Preferred Stock has 10,000 shares of voting rights only pari passu to common shares voting with no conversion rights and no equity participation
Preferred stock shares authorized	4,000		4,000		4,000
Preferred stock, par or stated value per share	$ 0.001		$ 0.001		$ 0.001
Series D Preferred Stock [Member] | Stanley L. Teeple [Member]
Class of Stock [Line Items]
Stock issued during the period	600
Series D Preferred Stock [Member] | Marco alfonsi [Member]
Class of Stock [Line Items]
Stock issued during the period	600
Series D Preferred Stock [Member] | Pasquale ferro [Member]
Class of Stock [Line Items]
Stock issued during the period	600
Series D Preferred Stock [Member] | Philip Scala [Member]
Class of Stock [Line Items]
Stock issued during the period	150

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Summary of Stock Options Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Option shares, outstanding beginning	377,654
Weighted average exercise price, outstanding beginning	$ 6.11
Weighted average remaining contractual life years, outstanding ending	4 years 3 months 21 days	4 years 5 months 15 days
Option shares, granted	79,013
Weighted average exercise price, granted	$ 5.10
Weighted average remaining contractual life years, granted	4 years 9 months 7 days
Option shares, exercised
Weighted average exercise price, exercised
Option shares, forfeited
Weighted average exercise price, forfeited
Option shares, expired
Weighted average exercise price, expired
Option shares, outstanding ending	456,666	377,654
Weighted average exercise price, outstanding ending	$ 5.93	$ 6.11

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Schedule of Non-Vested Option Shares (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Non-vested options, beginning | shares
Weighted average grant-date fair value, non-vested options, beginning | $ / shares
Non-vested options, granted | shares	79,013
Weighted average grant-date fair value, granted | $ / shares	$ 7.24
Non-vested options, vested | shares	(79,013)
Weighted average grant-date fair value, vested | $ / shares	$ 7.24
Non-vested options, forfeited | shares
Weighted average grant-date fair value, forfeited | $ / shares
Non-vested options, ending | shares
Weighted average grant-date fair value, non-vested options, ending | $ / shares

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Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Notes payable, outstanding	$ 0		$ 5,000
Due to director	210,434		$ 218,273
Director [Member]
Related Party Transaction [Line Items]
Professional fees	$ 0	$ 9,900

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Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Leases (Details)	Mar. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Nine months ended December 31, 2022	$ 809,010
Fiscal year 2023	832,893
Fiscal year 2024	326,974
Total	$ 1,968,877

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Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 203,017	$ 71,448

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Subsequent Events (Details Narrative) - USD ($)			1 Months Ended	3 Months Ended
	Apr. 24, 2022	Apr. 14, 2022	May 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Subsequent Event [Line Items]
Repayments of related party debt				$ 7,839
Subsequent Event [Member]
Subsequent Event [Line Items]
Paid from future offering proceeds			$ 100,000
Subsequent Event [Member] | Securities Purchase Agreement [Member]
Subsequent Event [Line Items]
Proceeds from issuance of debt	$ 150,000
Subsequent Event [Member] | Convertible Notes Payable [Member]
Subsequent Event [Line Items]
Debt instrument, payment terms		the holders extended the maturity date of certain previously issued promissory notes to April 30, 2022 in exchange for $300,000 and agreed to grant two additional extensions for 30 days each, each for an additional $100,000 per extension. Holders also waived certain defaults under the notes and granted consents required under the notes
Subsequent Event [Member] | Convertible Notes Payable [Member] | Holders [Member]
Subsequent Event [Line Items]
Repayments of related party debt		$ 300,000