10-Q 1 bdpt_10q.htm FORM 10-Q bdpt_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

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

 

 

 

For the quarterly period ended September 30, 2019

 

 

or

 

 

¨

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the transition period from _________ to _________

   

Commission File Number 000-54949

 

 

BioAdaptives Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

46-2592228

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer Identification No.)

 

2620 Regatta Drive, Suite 102, Las Vegas, NV

 

89128

(Address of principal executive offices)

 

(Zip Code)

 

(702) 659-8829

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year,

 if changed since last report)

 

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

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§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). x YES    ¨ NO

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non- accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 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     x NO

 

Large accelerated filer

¨

Accelerated filer

¨

Non-Accelerated filer

¨

Smaller reporting Company

x

Emerging Growth Company

¨

 

 

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

 

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. x YES    ¨ NO

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

18,829,109 common shares issued and outstanding as of November 5, 2019

 

 
 
 
 

Form 10-Q

 

Table of Contents

 

PART I – FINANICAL INFORMATION

 

 

 

 

 

 

Item 1.

Financial Statements

 

 

3

 

 

 

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of operations

 

 

13

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

 

19

 

 

 

 

 

 

 

Item 4.

Controls and Procedures

 

 

19

 

 

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

 

21

 

 

 

 

 

 

 

Item 1A.

Risk Factors

 

 

21

 

 

 

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

21

 

 

 

 

 

 

 

Item 3.

Defaults Upon Senior Securities

 

 

21

 

 

 

 

 

 

 

Item 4.

Mine Safety Disclosure

 

 

21

 

 

 

 

 

 

 

Item 5.

Other Information

 

 

21

 

 

 

 

 

 

 

Item 6.

Exhibits

 

 

22

 

 

 

 

 

 

 

 

Signatures

 

 

23

 

 

 
2
 
 

 

PART I - FINANICAL INFORMATION

 

BIOADAPTIVES, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

ASSETS

 

Current Assets:

 

 

 

 

 

 

Cash

 

$155

 

 

$56,215

 

Marketable securities

 

 

1,301

 

 

 

3,987

 

Inventory

 

 

12,783

 

 

 

49,857

 

Other receivable

 

 

180

 

 

 

-

 

Total Current Assets

 

 

14,419

 

 

 

110,059

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$14,419

 

 

$110,059

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

Current Liabilities:

 

 

 

 

 

 

 

 

Bank overdraft

 

 

743

 

 

 

-

 

Accounts payable and accrued liabilities

 

 

38,546

 

 

 

53,951

 

Derivative liabilities

 

 

506,958

 

 

 

662,038

 

Current portion of convertible notes - net of discount of $106,871 and $0

 

 

204,129

 

 

 

-

 

Notes Payable

 

 

34,917

 

 

 

-

 

Total Current Liabilities

 

 

785,293

 

 

 

715,989

 

 

 

 

 

 

 

 

 

 

Convertible notes - net of discount of $0 and $223,189

 

 

-

 

 

 

87,811

 

Total Liabilities

 

 

785,293

 

 

 

803,800

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit:

 

 

 

 

 

 

 

 

Preferred stock, ($.0001 par value, 5,000,000 shares authorized; none issued and outstanding.)

 

 

-

 

 

 

-

 

Common stock ($.0001 par value, 100,000,000 shares authorized; 18,829,109 and 18,096,169 shares issued and outstanding, and 252,730 and 275,502 issuable as of September 30, 2019 and December 31, 2018, respectively)

 

 

1,883

 

 

 

1,837

 

Additional paid-in capital

 

 

3,889,564

 

 

 

3,824,412

 

Accumulated deficit

 

 

(4,662,321)

 

 

(4,519,990)

Total Stockholders' Deficit

 

 

(770,874)

 

 

(693,741)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$14,419

 

 

$110,059

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 
3
 
Table of Contents

 

BIOADAPTIVES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

 

Three Months Ended

 

 

Nine months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$2,076

 

 

$-

 

 

$8,779

 

 

$-

 

Cost of revenue

 

 

435

 

 

 

-

 

 

 

2,259

 

 

 

-

 

Gross Profit

 

 

1,641

 

 

 

-

 

 

 

6,520

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

16,808

 

 

 

66,465

 

 

 

41,167

 

 

 

135,236

 

Professional fees

 

 

6,874

 

 

 

61,534

 

 

 

49,130

 

 

 

165,094

 

Stock based compensation

 

 

23,198

 

 

 

85,270

 

 

 

65,198

 

 

 

179,785

 

Total Operating Expenses

 

 

46,880

 

 

 

213,269

 

 

 

155,495

 

 

 

480,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on marketable securities

 

 

(402)

 

 

(1,174)

 

 

(2,686)

 

 

(20)

Interest expense

 

 

(48,172)

 

 

(159,373)

 

 

(145,750)

 

 

(182,438)

Change in fair value of derivative liabilities

 

 

38,908

 

 

 

(274,782)

 

 

155,080

 

 

 

(407,899)

Total Other Income (Expense)

 

 

(9,666)

 

 

(435,329)

 

 

6,644

 

 

 

(590,357)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(54,905)

 

 

(648,598)

 

 

(142,331)

 

 

(1,070,472)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(54,905)

 

$(648,598)

 

$(142,331)

 

$(1,070,472)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$(0.00)

 

$(0.04)

 

$(0.01)

 

$(0.06)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

18,710,782

 

 

 

16,559,359

 

 

 

18,568,062

 

 

 

16,546,262

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 
4
 
Table of Contents

 

BIOADAPTIVES, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

(UNAUDITED)

 

 

 

Preferred stock

 

 

Common stock

 

 

Additional

paid-in

 

 

Accumulated

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

 

-

 

 

$-

 

 

 

18,371,671

 

 

$1,837

 

 

$3,824,412

 

 

$(4,519,990)

 

$(693,741)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for service - related party

 

 

-

 

 

 

-

 

 

 

144,713

 

 

 

15

 

 

 

20,985

 

 

 

-

 

 

 

21,000

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

92,445

 

 

 

92,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2019

 

 

-

 

 

$-

 

 

 

18,516,384

 

 

$1,852

 

 

$3,845,397

 

 

$(4,427,545)

 

$(580,296)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for service - related party

 

 

-

 

 

 

-

 

 

 

140,753

 

 

 

14

 

 

 

20,986

 

 

 

-

 

 

 

21,000

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(179,871)

 

 

(179,871)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2019

 

 

-

 

 

$-

 

 

 

18,657,137

 

 

$1,866

 

 

$3,866,383

 

 

$(4,607,416)

 

$(739,167)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for service - related party

 

 

-

 

 

 

-

 

 

 

171,972

 

 

 

17

 

 

 

23,181

 

 

 

-

 

 

 

23,198

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(54,905)

 

 

(54,905)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2019

 

 

-

 

 

$-

 

 

 

18,829,109

 

 

$1,883

 

 

$3,889,564

 

 

$(4,662,321)

 

$(770,874)

 

 

 

Preferred stock

 

 

Common stock

 

 

Additional

paid-in

 

 

Subscription

 

 

Accumulated

 

 

Accumulated Other

Comprehensive

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

receivable

 

 

Deficit

 

 

Loss

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017

 

 

-

 

 

$-

 

 

 

15,578,262

 

 

$1,559

 

 

$3,115,273

 

 

$-

 

 

$(3,054,991)

 

$(58,336)

 

$3,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adoption of accounting standards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(58,336)

 

 

58,336

 

 

 

-

 

Common stock issued for cash

 

 

-

 

 

 

-

 

 

 

1,250,000

 

 

 

125

 

 

 

99,875

 

 

 

(100,000)

 

 

-

 

 

 

-

 

 

 

-

 

Gain on sales of asset to related party

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

32,000

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

32,000

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

(9,099)

 

 

-

 

 

 

(9,099)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2018

 

 

-

 

 

$-

 

 

 

16,828,262

 

 

$1,684

 

 

$3,247,148

 

 

$(100,000)

 

$(3,122,426)

 

$-

 

 

$26,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for service

 

 

-

 

 

 

-

 

 

 

154,807

 

 

 

15

 

 

 

42,135

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

42,150

 

Common stock issued with convertible notes

 

 

-

 

 

 

-

 

 

 

87,000

 

 

 

9

 

 

 

18,748

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,757

 

Cancellation of common stock issued for cash

 

 

-

 

 

 

-

 

 

 

(1,250,000)

 

 

(125)

 

 

(99,875)

 

 

100,000

 

 

 

-

 

 

 

-

 

 

 

-

 

Warrant issued for service

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52,365

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52,365

 

Reclassification of derivative liability from additional paid in capital

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(42,196)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(42,196)

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(412,775)

 

 

-

 

 

 

(412,775)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2018

 

 

-

 

 

$-

 

 

 

15,820,069

 

 

$1,583

 

 

$3,218,325

 

 

$-

 

 

$(3,535,201)

 

$-

 

 

$(315,293)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for service

 

 

-

 

 

 

-

 

 

 

527,168

 

 

 

53

 

 

 

85,217

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

85,270

 

Common stock issued with convertible notes

 

 

-

 

 

 

-

 

 

 

10,000

 

 

 

1

 

 

 

1,753

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,754

 

Common stock issued for conversion of debt

 

 

-

 

 

 

-

 

 

 

1,200,027

 

 

 

120

 

 

 

116,630

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

116,750

 

Resolution of derivative liabilities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

239,518

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

239,518

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(648,598)

 

 

-

 

 

 

(648,598)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2018

 

 

-

 

 

$-

 

 

 

17,557,264

 

 

$1,757

 

 

$3,661,443

 

 

$-

 

 

$(4,183,799)

 

$-

 

 

$(520,599)

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 
5
 
Table of Contents

 

BIOADAPTIVES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$(142,331)

 

$(1,070,472)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

-

 

 

 

44,095

 

Stock-based compensation - related party

 

 

65,198

 

 

 

83,325

 

Warrants issued for service

 

 

-

 

 

 

52,365

 

Change in fair value of derivative liabilities

 

 

(155,080)

 

 

407,899

 

Amortization of debt discount

 

 

116,318

 

 

 

147,719

 

Unrealized loss on investments in marketable securities

 

 

2,686

 

 

 

20

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Inventory

 

 

37,074

 

 

 

-

 

Prepaid expense and other current assets

 

 

(180)

 

 

(21,681)

Accounts payable and accrued liabilities

 

 

(15,405)

 

 

39,099

 

Net Cash Used in Operating Activities

 

 

(91,720)

 

 

(317,631)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Sales of assets

 

 

-

 

 

 

32,000

 

Net cash Provided by Investing Activities

 

 

-

 

 

 

32,000

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from Notes payable

 

 

36,900

 

 

 

-

 

Repayments of notes payable

 

 

(1,983)

 

 

-

 

Proceeds from Convertible notes

 

 

-

 

 

 

376,000

 

Bank overdraft

 

 

743

 

 

 

-

 

Net Cash Provided By Financing Activities

 

 

35,660

 

 

 

376,000

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

(56,060)

 

 

90,369

 

Cash at beginning of period

 

 

56,215

 

 

 

360

 

Cash at end of period

 

$155

 

 

$90,729

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$-

 

 

$-

 

Cash paid for interest

 

$27,769

 

 

$-

 

 

 

 

 

 

 

 

 

 

NON-CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Derivative liability recognized as debt discount

 

$145,237

 

 

$355,489

 

Issuance of common stock for conversion of debt and accrued interest

 

$-

 

 

$116,750

 

Reclassification of derivative liability from additional paid in capital due to tainted instruments

 

$-

 

 

$42,196

 

Gain on sale of asset to related party

 

$-

 

 

$32,000

 

Resolution of derivative liability upon conversion of debt

 

$-

 

 

$239,518

 

Common stock issued in conjunction with convertible notes

 

$-

 

 

$20,511

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

 

 
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BioAdaptives, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

1. DESCRIPTION OF BUSINESS AND HISTORY

 

Description of business

 

BioAdaptives, Inc. (formerly known as APEX 8 Inc.) (“BioAdaptives”,” Company”) was incorporated under the laws of the State of Delaware on April 19, 2013. BioAdaptives is a research, development, and educational company. Our current focus is on products and strategies that improve health and wellness. These products include dietary supplements, specialty food items, and proprietary methods of optimizing the bioelectromagnetic availability of foods and beverages. Our base of intellectual property and products, which are patent pending solutions in the form of devices and nutraceuticals, are designed to aid in cognition, focus, fatigue reduction, increased testosterone, improved overall emotional and physical wellness, healing, and anti-aging.

 

The Company’s strategy is to develop a position as a leader in supplying science-based quality nutraceutical products to an aging population within developed countries such as the United States, Canada, APAC countries, such as China, Japan, Korea, Singapore, Taiwan, Australia and New Zealand, as well as both Western and Eastern Europe, while continuing to create new innovative, health inspired products to start generating growth in sales and profitability. Some of the products have proven to be as effective or even more effective on horses and dogs than on humans and this has caused the Company to expand the target market to include dogs and horses.

 

Since 2014, BioAdaptives®, has been engaged in the research of primitive cells, including stem cells and their derivatives and natural ingredients which may encourage its proliferation. Such studies were conducted both on human and animals, in particular, canine and equine. The results have been encouraging. More in depth studies on this and other wellness aspects such as anti-aging and sports performance are scheduled.

 

On May 22, 2019, the Company moved its corporate office to 2620 Regatta Drive, Suite 102, Las Vegas, NV 89128, but maintained fulfillment facilities at 4385 Cameron Street, Suite B, Las Vegas, NV 89103.

 

2. SUMMARY OF SIGNIFICANT POLICIES

 

Basis of presentation

 

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

 

Consolidation

 

The accompanying consolidated financial statements include the accounts of the Company and its 100% owned subsidiary, Blenders Choice Inc. All inter-company balances and transactions have been eliminated. The Company and its subsidiary will be collectively referred to herein as the “Company.”

 

Use of estimates

 

The preparation of consolidated financial statements in conformity with US GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to the Company, and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.

 

 
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Earnings (loss) per share

 

Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Diluted earnings per share excludes all dilutive potential shares if their effect is anti-dilutive.

 

Lease

 

Effective January 1, 2019, we adopted Accounting Standards Codification 842, Leases (“ASC 842”). Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on our consolidated balance sheet and are expensed on a straight-line basis over the lease term in our consolidated statement of income.

 

Financial Instruments and Fair Value Measurements

 

As defined in ASC 820” Fair Value Measurements,” fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement).

 

The following table summarizes fair value measurements by level at September 30, 2019 and December 31, 2018, measured at fair value on a recurring basis:

 

Fair Value Measurements as of September 30, 2019 Using:

 

 

 

Total Carrying

Value as of September

 

 

Quoted Market

Prices in Active

Markets

 

 

Significant Other Observable Inputs

 

 

Significant Unobservable

Inputs

 

 

 

30, 2019

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

$1,702

 

 

$1,702

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$506,958

 

 

$-

 

 

$-

 

 

$506,958

 

 

Fair Value Measurements as of December 31, 2018 Using:

 

 

 

Total

Carrying

 

 

Quoted Market

Prices in Active Markets

 

 

Significant Other Observable Inputs

 

 

Significant Unobservable

Inputs

 

 

 

Value

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Equity Securities

 

$3,987

 

 

$3,987

 

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$662,038

 

 

$-

 

 

$-

 

 

$662,038

 

 

 
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Recent Accounting Pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial statements.

 

3. GOING CONCERN

 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses since inception and had an accumulated deficit of $4,662,321 as of September 30, 2019. The Company requires capital for its contemplated operational and marketing activities. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

 

In order to mitigate the risk related with this uncertainty, the Company plans to issue additional shares of common stock for cash and services during the next 12 months.

 

4. MARKETABLE SECURITIES

 

Equity securities at September 30, 2019 and December 31, 2018, were comprised of 105,736 shares of common stock of Hemp, Inc. (HEMP.PK) recorded at fair value of $1,301 and $3,987, respectively.

 

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

Accounts payable and accrued liabilities at September 30, 2019 and December 31, 2018 consists of the following;

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Accounts payable

 

$410

 

 

$39,724

 

Accrued interest

 

 

10,748

 

 

 

8,185

 

Accrued liabilities

 

 

27,388

 

 

 

6,042

 

 

 

$38,546

 

 

$53,951

 

 

6. NOTE PAYABLE

 

On March 28, 2019, June 27, 2019 and July 26, 2019, the Company issued note payable of $10,000, $5,000 and $10,000 to a related party. The note is a 4% interest bearing promissory note that is payable on March 27, 2020, June 30, 2020 and July 25, 2020.

 

On August 1, 2019, the Company issued note payable of $11,900 to a third party. The repayment amount is $12,852 and the term is 6 months. During the nine months ended September 30, 2019, the Company repaid $2,162 including interest expense of $174.

 

During the nine months ended September 30, 2019, the Company recognized interest expense of $506. As of September 30, 2019, the Company owed note payable of $34,917.

 

 
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7. CONVERTIBLE NOTES

 

Convertible notes at September 30, 2019 and December 31, 2018 consists of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Convertible Notes - originated in April 2018

 

$95,000

 

 

$95,000

 

Convertible Notes - originated in June 2018

 

 

166,000

 

 

 

166,000

 

Convertible Notes - originated in October 2018

 

 

50,000

 

 

 

50,000

 

Total convertible notes payable

 

 

311,000

 

 

 

311,000

 

 

 

 

 

 

 

 

 

 

Less: Unamortized debt discount

 

 

(106,871)

 

 

(223,189)

Total convertible notes

 

 

204,129

 

 

 

87,811

 

 

 

 

 

 

 

 

 

 

Less: current portion of convertible notes

 

 

204,129

 

 

 

-

 

Long-term convertible notes

 

$-

 

 

$87,811

 

 

For the nine months ended September 30, 2019 and 2018, the interest expense on convertible notes was $28,926 and $34,491, respectively. As of September 30, 2019, and December 31, 2018, the accrued interest was $10,420 and $8,185, respectively.

 

The Company recognized amortization expense related to the debt discount of $116,318 and $147,719 for the nine months ended September 30, 2019 and 2018, respectively, which is included in interest expense in the statements of operation.

 

Convertible Notes – Issued during the year ended December 31, 2018

 

During the year ended December 31, 2018, the Company issued a total principal amount of $426,000 convertible notes for cash proceeds of $426,000. The convertible notes were also provided with a total of 107,000 common shares valued at $22,210. The terms of convertible notes are summarized as follows:

 

 

·

Term two years;

 

·

Annual interest rates 12%;

 

·

Convertible at the option of the holders at any time

 

·

Conversion prices are based on 50% discount to market value for the common stock based on a 4-week weekly average of the closing price.

 

8. DERIVATIVE LIABILITIES

 

The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company accounts for warrants as a derivative liability due to there being no explicit limit to the number of shares to be delivered upon settlement of all conversion options.

 

Fair Value Assumptions Used in Accounting for Derivative Liabilities.

 

ASC 815 requires we assess the fair market value of derivative liability at the end of each reporting period and recognize any change in the fair market value as other income or expense item.

 

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of September 30, 2019. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each convertible note is estimated using the Black-Scholes valuation model.

 

 
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For the nine months ended September 30, 2019 and year ended December 31, 2018, the estimated fair values of the liabilities measured on a recurring basis are as follows:

 

 

 

Nine Months Ended

 

 

Year ended

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Expected term

 

0.47 - 1.43 years

 

 

1.22 - 2.01 years

 

Expected average volatility

 

229% - 320%

 

 

265% - 309%

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

1.75% - 2.40%

 

 

2.27% - 2.88%

 

 

The following table summarizes the changes in the derivative liabilities during the nine months ended September 30, 2019.

 

Fair Value Measurements Using Significant Observable Inputs (Level 3)

 

 

 

 

Balance - December 31, 2018

 

$662,038

 

 

 

 

 

 

Gain on change in fair value of the derivative

 

 

(155,080)

Balance - September 30, 2019

 

$506,958

 

 

The aggregate (gain) loss on derivatives during the nine months ended September 30, 2019 and 2018 was as follows;

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Day one loss due to derivative liabilities on convertible notes

 

$-

 

 

$404,339

 

(Gain) loss on change in fair value of the derivative liabilities

 

 

(155,080)

 

 

3,560

 

 

 

$(155,080)

 

$407,899

 

 

9. STOCKHOLDERS’ EQUITY

 

Preferred Stock

 

The Company is authorized to issue 5,000,000 shares of $.0001 par value preferred stock. As of September 30, 2019, and December 31, 2018, no shares of preferred stock had been issued.

 

Common Stock

 

The Company is authorized to issue 100,000,000 shares of $.0001 par value common stock.

 

During the nine months ended September 30, 2019, the Company recorded 171,972 common stock issuable valued at $21,000 based on an employment agreement – related party transaction.

 

As of August 12, 2019, the Company issued 480,210 restricted common stock to Dr. Edward Jacobs as his compensation from August 1, 2018 to June 30, 2019.

 

As of September 30, 2019, and December 31, 2018, there were 18,829,109 and 18,371,671 shares of the Company’s common stock issued and outstanding, respectively. In addition, as of September 30, 2019 and December 31, 2018, there were 252,730 shares and 275,502 shares of the Company’s common stock issuable, respectively.

 

 
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Warrant

 

During the year ended December 31, 2018, the Company entered into an agreement with consultant to provide the Company with consulting services in exchange for 2-year warrant to purchase 200,000 shares of common stock with an exercise price of $0.1 per share. The Company recognized a warrant expense of $52,365, as stock-based compensation and additional paid-in capital. The Company determined that the warrants qualify for derivative accounting as a result of the related issuance of the convertible note on in April 2018, which led to no explicit limit to the number of shares to be delivered upon future settlement of the conversion options (see Note 8).

 

The following table summarizes information relating to outstanding and exercisable stock options as of September 30, 2019:

 

Warrants Outstanding

 

 

Warrants Exercisable

 

Number of

 

 

Contractual life

 

 

 

 

Number of

 

 

 

Shares

 

 

(in years)

 

 

Exercise Price

 

 

Shares

 

 

Exercise Price

 

 

200,000

 

 

 

0.47

 

 

$0.10

 

 

 

200,000

 

 

$0.10

 

 

As of September 30, 2019, the aggregate intrinsic value of warrants outstanding was approximately $480 based on the closing market price of $0.1024 on September 30, 2019.

 

10. COMMITMENT

 

On March 30, 2018, the Company entered into a rental agreement with Ridge II Properties for the corporate office. Monthly rent is $1,000. The term of the lease is one year, beginning April 1, 2018 to March 30, 2019. Our office lease meets the definition of a short-term lease because the lease term is 12 months or less. Consequently, consistent with Company’s accounting policy election, the Company does not recognize the right-of-use asset and the lease liability arising from this lease. During the nine months ended September 30, 2019, the Company incurred rent expense of $3,000.

 

In September 2019, the Company entered into an employment agreement and approved a base compensation of $5,000 per month and 250,000 shares valued at $26,375 to be issued on August 31, 2020. As of September 30, 2019, the Company recorded $5,000 as accrued liabilities and stock-based compensation of $2,198 for the nine months ended September 30, 2019.

 

11. SUBSEQUENT EVENT

 

On October 1, 2019, Ronald T. Lambrecht joined the Company as its Chief Financial Officer. At the same time, he also assumed the position of Chief Financial Officer of the Company’s majority owned subsidiary, LiveStock Impact, Inc. Dr. Edward E. Jacobs, Jr and Robert W Ellis joined the Board of LiveStock Impact, Inc.

 

On October 25, 2019, the Company issued note payable of $40,500 to a third party with an interest at the rate of ten percent (10%) per annum. The note is for the term of 12 months.

 

In October, the Company also started a survey on a Pain Relief supplement under the BioAdaptives label to prepare for the product launch at the end of the year.

 

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

 

FORWARD LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward- looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

 

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

 

As used in this quarterly report, the terms “we”, “us”, “our”, “Company” and "BioAdaptives" mean BioAdaptives Inc., unless otherwise indicated.

 

General Overview

 

We were incorporated under the laws of the State of Delaware on April 19, 2013 under the name APEX 8. On May 3, 2013, we filed a registration statement on Form 10 to register with the U.S. Securities and Exchange Commission as a public company. We were originally organized as a vehicle to investigate and, if such investigation warranted, acquire a target company or business seeking the perceived advantages of being a publicly held corporation.

 

On June 21, 2013, our former sole officer and director, entered into a Share Purchase Agreement pursuant to which he sold an aggregate of 10,000,000 shares of his shares of the Company's common stock to Ferris Holding, Inc. at a purchase price of $40,000. In the aggregate, these shares represented 100% of the Company's issued and outstanding common stock. Effective upon the closing of the Share Purchase Agreement, our former sole officer and director owned no shares of the Company's stock.

 

Additionally, on June 21, 2013, the Company accepted the resignations of our former sole officer and director as the Company's President, Chief Executive Officer, Chief Financial Officer, Secretary and Chairman of the Board of Directors. These resignations were in connection with the consummation of the Share Purchase Agreement with Ferris Holding, Inc., and were not the result of any disagreement with the Company on any matter relating to the Company's operations, policies, or practices. Effective as of the same date, to fill the vacancies created by our former sole officer and director's resignations, the Company elected and appointed Barry K. Epling as Chairman of the Board of Directors, and Gerald A. Epling, as President, Chief Executive Officer, Secretary, Chief Financial Officer and Member of the Board of Directors of the Company.

 

Subsequently, on September 24, 2013, the Board of Directors and Majority Stockholder of the Company approved an amendment to the Company's Certificate of Incorporation to change the name of the Company from APEX 8 Inc. to BioAdaptives, Inc. On September 25, 2013, the Company filed a Certificate of Amendment to the Certificate of Incorporation with the Secretary of State of the State of Delaware to change the name of the Company to BioAdaptives, Inc.

 

 
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On July 14, 2014, the Company announced changes in its management. Gerald A. Epling, who had been serving as the Company's Chief Executive Officer, Chief Financial Officer and a Director, resigned from all positions. His resignation was in connection to pursue other interests and was not the result of any disagreement with the Company on any matter relating to the Company's operations or practices. On that same day, the Company elected Barry Epling, who also serves as Chief Executive Officer, President and Director of Ferris Holding (FHI) to the positions vacated by Gerald Epling. As of the date of the event, FHI was the Company's controlling stockholder.

 

On February 6, 2015, the Company announced changes in its management. Barry Epling, who had been serving as the Company's President, Chief Executive Officer, Chief Financial Officer, and Secretary, resigned from his positions. He remained the Company's Chairman of the Board of Directors. His resignation was in connection to pursue other interests and was not the result of any disagreement with the Company on any matter relating to the Company's operations or practices. On that same day, the Company elected Christopher G. Hall, as its President, Chief Executive Officer, Chief Financial Officer and Secretary. As of the date of the event, FHI was the Company's controlling stockholder. On October 2, 2017 Barry Epling resigned as Chairman of the Board of Directors. At the same time, Ferris Holding, Inc where Barry Epling is the sole stockholder, gifted 9,628.568 shares of BioAdaptives, Inc to a 501 (C) 3 Breath of Life Foundation. As of June 30, 2019 , this share amount represented 51.84% of the Company’s shares issued and outstanding. Subsequently, Breath of Life Foundation assigned the irrevocable voting rights of its shareholding in BioAdaptives to the Board of Directors of BioAdaptives, Inc. As of this date of the event, FHI was no longer the Company’s controlling stockholder.

 

Christopher G. Hall also resigned on October 2, 2017 as its President, Chief Executive Officer. Chief Financial Officer and Secretary. However, He remains on the Advisory Board of the Company.

 

On the same day, October 2, 2017, Kim Southworth and Edward E Jacobs, Jr MD were appointed to the Board of Directors. Kim Southworth was also appointed Chief Executive Officer and Edward E Jacobs was appointed Chief Financial officer, Secretary and Scientific Director of the Company.

 

On May 15, 2018 James E Rouse was appointed to the Board and assumed the position of President of the Company.

 

On July 6, 2018 Kim Southworth resigned from the Company. On the same day, Edward E Jacobs Jr. MD was appointed Chief Executive Officer in addition to his existing responsibilities.

 

On September 10, 2018 James Rouse resigned from the Board and also his position as President of the Company. His business remained until September 25, 2018 as a consultant to the Company. Since then, Edward E Jacobs, Jr MD has been the Company's sole Director, Chief Executive Officer, President, Secretary and Chief Financial Officer.

 

On May 10, 2019 the Company filed a Form 10-12(g) to return to a fully reporting entity. The Company received confirmation from Security Exchange Commission on August 1, 2019 that there were no further questions on this application.

 

On September 1, 2019, Robert W, Ellis joined the Company as its President, while Dr. Edward E. Jacobs, Jr remained the Chief Executive Officer and Chief Scientific Director.

 

The Company also announced on September 18, 2019, the formation of a majority owned subsidiary, LiveStock Impact, Inc, concentrating in BioAdaptives’ animal business: supplying supplement feed to both livestock and companion animals. This subsidiary is managed by BioAdaptives’ long time consultant, Bruce Colclasure. LiveStock Impact, Inc will be active from the last quarter.

 

An 8K was filed on September 24, 2019 outlining all the changes and details.

 

 
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Our Current Business

 

BioAdaptives, Inc is a research, development and educational Company. Our current focus is on products that improve health and wellness for both human and animal. These products include dietary supplements, specialty food items and proprietary methods of optimizing the bioelectromagnetic availability of foods and beverages. Our base of intellectual property and products, which are patent pending solutions in the form of devices and nutraceuticals, are designed to aid in memory, cognition, focus, fatigue reduction, management and balance of gut and weight, improve overall emotional and physical wellness, pain relief, assisting sleep, healing and anti-aging. The Company’s strategy is to develop a position as a leader in supplying science-based, quality nutraceutical products to an aging population within developed countries such as the United States, Canada APAC countries such as China, Japan, Korea, Singapore, Taiwan, Australia and New Zealand, as well as both Western and Eastern Europe, while continuing to create new and innovative health-inspired products to start generating growth in sales and profitability. Some of the products have proven to be as effective or even more effective on horses and dogs than on humans. This has caused the Company to expand the target markets to include companion animals.

 

Create market share in the rapidly growing aging population demographic. The Company's strategy is to create its share in this demographic within developed countries by (i) emphasizing the benefits of its proprietary nutraceutical and Agronifier™ products and technology as well as creating additional products, and (ii) utilizing its marketing division to act as its sales and distribution arm to seek additional channels for sales coverage.

 

Focus on the aging population of developed countries. The Company believes that the population growth in the aged population demographic presents a unique opportunity. The World Health Organization has stated that the population growth for those 60 years and older will more than double from 11% to over 22% between 2000 and 2050, with the absolute number of people aged 60 and over expected to increase from 605 million to 2 billion within the same period. The Company also recognizes the rising buying power and interests of the Millennials in wellness products and their choice of communication medium being social media and internet, it intends to set up a section to anticipate growth in this area.

 

Make strategic acquisitions and diversify with subsidiary companies. The Company plans to capitalize on the significant opportunities for consolidation available in the nutraceutical industry. The Company anticipates that it will seek acquisitions that serve to expand the Company's product brands, broaden its product offerings or facilitate entry into complementary distribution channels. The Company, after studying the full spectrum hemp markets in its supplement food possibilities, announced on September 24, 2019, the formation of a division to engage in hemp products, Tizhemp. Such products in the forms of topicals, tea and powder will be available the last quarter of 2019.

 

Continue to develop new products and product extensions. The Company seeks to continue to develop and commercialize nutraceutical products and through this effort intends to develop new and innovative products. During 2014, Ferris Holding, Inc., a Nevada corporation ("Ferris"), rebranded NutraLoad® and Bliss in A Bottle™, to PrimiCell® and PrimiLive® in an effort to keep a more consistent product naming convention going forward, and pursuant to the Product Agreement with Ferris, the Company continues to have the right to develop, market, and sell these products. Additionally, two new products Canine Regen® and Equine Regen® Plus were tested extensively in the United States, Australia, Singapore, and Europe. The results of both products have been favorable. The Equine product comes with a higher cost, however, very cost- effective when it is used by trainers and owners of performance horses. Thoroughbreds, polo ponies, cutting horses, barrel- racers and other competition horses have shown significant improvement in hooves, coat, mane, strength, speed, endurance, recovery, responsiveness, and several other areas which overall improvements has been attributed to the increase in stem cells in horses. The canine product has also been found to be a cost-effective introduction for dogs, in particular, geriatric dogs.

 

Capitalize on strong international growth. The Company believes that international sales represent a significant growth opportunity as aging population growth outside North America exceeds 1 billion people. The Company plans to aggressively pursue international sales by adding additional salespeople within its marketing effort, developing a network in high growth regions, and continuing its efforts to register products and trademarks in attractive foreign markets.

 

We can make no assurances that we will find commercial success in any of our products. We plan to rely upon our sales and licensing of our licensed Agronifier technology and direct and indirect sales of the Primi line and Regen animal products for revenues, neither of which have produced any significant revenue since our inception. We are a new company and thus have very limited experience in sales expectations and forecasting.

 

Results of Operations

 

Three and Nine Months Ended September 30, 2019 and 2018

 

We had a net loss of $142,331 for the nine-month period ended September 30, 2019, which was $928,141 less than the net loss of $1,070,472 for the nine-month period ended September 30, 2018. The change in our results over the two periods is primarily in a slight revenue generated and a considerable decrease in operating expenses and other expenses.

 

 
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The following table summarizes key items of comparison and their related increase (decrease) for the three-month periods ended September 30, 2019 and 2018:

 

 

 

Changes Between Three Month Periods Ended

 

 

 

September 30

 

 

 

2019

 

 

2018

 

 

Changes

 

Revenue

 

$2,076

 

 

$-

 

 

 

2,076

 

Cost of Sales

 

 

435

 

 

 

-

 

 

 

435

 

Operation Expenses

 

 

46,880

 

 

 

213,269

 

 

 

(166,389)

Other income (expenses)

 

 

(9,666)

 

 

(435,329)

 

 

425,663

 

Net Income (loss)

 

 

(54,905)

 

 

(648,598)

 

 

593,693

 

 

The following table summarizes key items of comparison and their related increase (decrease) for the nine-month periods ended September 30, 2019 and 2018:

 

 

 

Changes Between Nine Month Periods Ended

 

 

 

September 30

 

 

 

2019

 

 

2018

 

 

Changes

 

Revenue

 

$8,779

 

 

$-

 

 

 

8,779

 

Cost of Sales

 

 

2,259

 

 

 

-

 

 

 

2,259

 

Operation Expenses

 

 

155,495

 

 

 

480,115

 

 

 

(324,620)

Other income (expenses)

 

 

6,644

 

 

 

(590,357)

 

 

597,001

 

Net Income (loss)

 

 

(142,331)

 

 

(1,070,472)

 

 

928,141

 

 

Revenue

 

We earned revenues of $2,076 and $8,779 for the three and nine months ended September 30, 2019 and 2018.

 

Operating Expenses

 

The following table summarizes our operating expenses for the three- and nine-month periods ended September 30, 2019 and 2018

 

 

 

Changes Between Three Month Periods Ended

 

 

 

September 30

 

 

 

2019

 

 

2018

 

 

Changes

 

General Administration

 

$16,808

 

 

$66,465

 

 

 

(49.657)

Professional Fees

 

 

6,874

 

 

 

61,534

 

 

 

(54,660)

Stock Based Compensation

 

 

23,198

 

 

 

85,270

 

 

 

(62,072)

Total

 

 

46,880

 

 

 

213,269

 

 

 

(166,398)

 

 
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Our general, administrative and professional fees are largely attributable to office, rent, advertising, consultants and transfer agent, legal, accounting and audit fees related to our reporting requirements as a public company and in 2018, the professional fees reflect the cost of catching up with unaudited accounting which was no longer the case in 2019.

 

 

 

Changes Between Six Month Periods Ended

 

 

 

September 30

 

 

 

2019

 

 

2018

 

 

Changes

 

General Administration

 

$41,167

 

 

$135,236

 

 

 

(94,069)

Professional Fees

 

 

49,130

 

 

 

165,094

 

 

 

(115,964)

Stock based compensation

 

 

65,198

 

 

 

179,785

 

 

 

(114,587)

Total

 

 

155,495

 

 

 

480,115

 

 

 

(324,620)

 

Our general and administrative expenses decreased in the three and nine months ended September 30, 2019 due to a change in management and its cost saving directions, as well as a decrease in travelling and promotion expenses. In consolidating responsibilities and working with less consultants, we reduced the stock-based compensation. Having completed bulk of the catchup accounting and auditing work, we have also reduced our outside professionals support for our accounting and auditing process, which has resulted in a decrease in Professional Fees, in the three and nine months ended September 30, 2019, compared to the three and nine months ended September 30, 2018.

 

Other income (expense)

 

The Company recorded interest expense of $9,666 and $435,329 for the three months ended September 30, 2019 and 2018 and $6,644 and $407.889 for the nine months ended September 30, 2019 and 2018, respectively.

 

Net loss

 

As a result of our operating expenses the Company reported a net loss of $54,905 and $648,598 for the three months ended September 30, 2019 and 2018 and $142,331 and $1,070,472 for the nine months ended September 30, 2019 and 2018 respectively.

 

Comprehensive income (loss)

 

The Company reported an unrealized loss on marketable securities of $402 and $1,174 for the three months ended September 30, 2019 and 2018 and an unrealized loss on marketable securities of $2,686 and $20 for the nine months ended September e, 2019 and 2018 respectively.

 

Liquidity and Capital Resources

 

Our balance sheet as of September 30, 2019 reflects current assets of $14,419. We had cash in the amount of $155 and working capital deficiency in the amount of $770,874 as of September 30, 2019.

 

 
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Working Capital (Deficiency)

 

 

 

 

 

 

 

 

 

 

September

 

 

December

 

 

 

 

 

 

 

30,2019

 

 

 

31,2018

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$

14,419

 

 

$

110,059

 

 

 

(95,640)

Current Liabilities

 

$

782,293

 

 

$

715,989

 

 

 

69,304

 

Working Capital (Deficiency)

 

$(770,874)

 

$(605,930)

 

 

(164,944)

 

Cash Flows

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2019

 

 

2018 

 

 

Change

 

Cash provided by (used in) Operating Activities

 

$(91,720)

 

$(317,631)

 

$225,911

 

Cash provided in Investing Activities

 

$-

 

 

 

32,000

 

 

 

(32,000)

Cash provided by (used in) Financing Activities

 

$35,660

 

 

 

376,000

 

 

 

(340,340)

Net Increase (Decrease) In Cash During Period

 

 

(56,060)

 

 

90,369

 

 

 

(146,429)

 

Net cash used by operating activities during the nine months ended September 30, 2019 was $91,720, a decrease of $225,911 from the $317,631 net cash used in operating activities during the nine months ended September 30, 2018

 

Cash Flows from Financing Activities

 

Net cash provided by financing activities during the nine months ended September 30, 2019 was $35,660, a decrease of $340,340 from the $376,000 net cash provided in financing activities during the nine months ended September 30, 2018.

 

As of September 30, 2019, we have insufficient cash to operate our business at the current level for the next twelve months and insufficient cash to achieve our business goals. The success of our business plan beyond the next 12 months is contingent upon us obtaining additional financing. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund our capital expenditures, working capital, or other cash requirements. We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no assurance that such additional financing will be available to us on acceptable terms, or at all.

 

Going Concern

 

At September 30, 2019, we had $155 of cash on-hand and an accumulated deficit of $4,662,321, and as noted throughout this report and our financial statements and notes thereto, our independent auditors have expressed their substantial doubt as to our ability to continue as a going concern as of September 30, 2019. We anticipate incurring significant losses in the future. We do not have an established source of revenue sufficient to cover our operating costs. Our ability to continue as a going concern is dependent upon our ability to successfully compete, operate profitably and/or raise additional capital through other means. If we are unable to reverse our losses, we will have to discontinue operations.

 

The financial statements included in this quarterly report have been prepared assuming that we will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.

 

Management's plans include the raising of capital through the equity markets to fund future operations, seeking additional acquisitions, and generating of revenue through our business. However, even if we do raise sufficient capital to support our operating expenses and generate adequate revenues, there can be no assurances that the revenue will be sufficient to enable us to develop business to a level where we will generate profits and positive cash flows from operations. These matters raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

 

 
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Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, and capital expenditures or capital resources that are material to stockholders.

 

Critical Accounting Policies

 

Our financial statements are based on the application of accounting principles generally accepted in the United States ("US GAAP"). US GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue, and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to US GAAP and are consistently and conservatively a that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

 

Recent Accounting Pronouncements

 

The Company has evaluated recent pronouncements through Accounting Standards Updates ("ASU") and believes that none of them will have a material impact on the Company's financial position, results of operations or cash flows.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

As required by Rule 13a-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report, June 30, 2019. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer.

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company's reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

 

 
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Based upon that evaluation, including our Chief Executive Officer and Chief Financial Officer, we have concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report due to a material weakness in our internal control over financial reporting, which is described below.

 

Management's Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934). Management has assessed the effectiveness of our internal control over financial reporting as of June 30, 2016, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, management concluded that, as of June 30, 2016, our internal control over financial reporting was not effective. Our management identified the following material weaknesses in our internal control over financial reporting, which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment. and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both USGAAP and SEC guidelines.

 

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

 

Changes in Internal Control over Financial Reporting

 

There was no change in the Company's internal control over financial reporting that occurred during the Company's most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

 

 
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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We know of no pending legal proceedings to which we are a party which are material or potentially material, either individually or in the aggregate. We are from time to time, during the normal course of our business operations, subject to various litigation claims and legal disputes. We do not believe that the ultimate disposition of any of these matters will have a material adverse effect on our consolidated financial position, results of operations or liquidity.

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

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

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

 

 
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Item 6. Exhibits

 

31.1

 

Section 302 Certification by the Principal Executive Officer

 

 

31.2

 

Section 302 Certification by the Principal Financial Officer

 

32.1

 

Section 906 Certification by the Principal Executive Officer

 

 

32.2

 

Section 906 Certification by the Principal Financial Officer

 

 
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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) 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.

 

 

BioAdaptives Inc.

 

(Registrant)

 

    
Dated: November 6, 2019 /s/ Edward E.Jacobs, Jr

 

 

Edward E. Jacobs, Jr 
  Chief Executive Officer, Secretary 
   (Principal Executive Officer ) 

 

 

 

 

 

 

/s/ Robert W. Ellis

 

 

 

Robert W. Ellis

 

 

 

President, Chief Financial Officer,

 

 

 

(Principal Financial Officer)

 

 

 

23