0001851734-21-000104.txt : 20211116 0001851734-21-000104.hdr.sgml : 20211116 20211116151956 ACCESSION NUMBER: 0001851734-21-000104 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 40 CONFORMED PERIOD OF REPORT: 20210930 FILED AS OF DATE: 20211116 DATE AS OF CHANGE: 20211116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUANTRX BIOMEDICAL CORP CENTRAL INDEX KEY: 0000820608 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 330202574 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17119 FILM NUMBER: 211415761 BUSINESS ADDRESS: STREET 1: P.O. BOX 4960 CITY: TUALATIN STATE: OR ZIP: 97062 BUSINESS PHONE: 267-880-1595 MAIL ADDRESS: STREET 1: P.O. BOX 4960 CITY: TUALATIN STATE: OR ZIP: 97062 FORMER COMPANY: FORMER CONFORMED NAME: AFEM MEDICAL CORP DATE OF NAME CHANGE: 19970722 FORMER COMPANY: FORMER CONFORMED NAME: XTRAMEDICS INC /NV/ DATE OF NAME CHANGE: 19920703 10-Q 1 quan20210930_10q.htm FORM 10-Q quan20210930_10q.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM 10-Q

 

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

 

For the quarterly period ended September 30, 2021

 

OR

 

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

 

For the transition period from __________ to __________

 

Commission File No. 000-17119

 

QUANTRX BIOMEDICAL CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

 

Nevada

 

33-0202574

(State or Other Jurisdiction of Incorporation or Organization)

 

(I.R.S. Employer Identification Number)

 

10190 SW 90th Avenue, Tualatin, Oregon 97062

(Address of Principal Executive Offices) (Zip Code)

 

(212) 980-2235

(Registrant's Telephone Number, Including Area Code)

 

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 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒    No ☐

 

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

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting 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

 

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 ☒

 

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

 

Securities registered pursuant to Section 12(g) of the Exchange Act: Common Stock, par value $0.01 per share

 

The number of shares outstanding of the issuer’s common stock as of November 15, 2021 was 78,696,461.

 



 

 

 

 

TABLE OF CONTENTS

 
 

PAGE

PART I - FINANCIAL INFORMATION

   

ITEM 1.

Financial Statements

1
     
 

Balance Sheets as of September 30, 2021 (Unaudited) and December 31, 2020

1
     
 

Statements of Operations (Unaudited) for the three and nine months ended September 30, 2021 and 2020

2
     
 

Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2021 and 2020

3
     
 

Quarterly Statements of Stockholders Equity (Unaudited) for the three and nine months ended September 30, 2021 and 2020

4
     
 

Condensed Notes to (Unaudited) Financial Statements

5
     

ITEM 2.

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

10
     

ITEM 4.

Controls and Procedures

13
     

PART II - OTHER INFORMATION

   

ITEM 1.

Legal Proceedings

14
     

ITEM 1A.

Risk Factors

14
     

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

14
     

ITEM 3.

Defaults Upon Senior Securities

14
     

ITEM 4.

Mine Safety Disclosures

14
     

ITEM 5.

Other Information

14
     

ITEM 6.

Exhibits

14
     

Signatures

15

 

 

-i-

 

PART I FINANCIAL INFORMATION

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

 

THIS QUARTERLY REPORT ON FORM 10-Q, INCLUDING EXHIBITS HERETO, CONTAIN FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  THESE FORWARD-LOOKING STATEMENTS ARE TYPICALLY IDENTIFIED BY THE WORDS “ANTICIPATES,” “BELIEVES,” “EXPECTS,” “INTENDS,” “FORECASTS,” “PLANS,” “ESTIMATES,” “MAY,” “FUTURE,” “STRATEGY,” OR WORDS OF SIMILAR MEANING. VARIOUS FACTORS COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE FORWARD-LOOKING STATEMENTS, INCLUDING THOSE DESCRIBED IN “RISK FACTORS” IN OUR ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2020. WE ASSUME NO OBLIGATIONS TO UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT NEW INFORMATION, ACTUAL RESULTS, CHANGES IN ASSUMPTIONS, OR CHANGES IN OTHER FACTORS, EXCEPT AS REQUIRED BY LAW.

 

 

-ii-

 

 

 

ITEM 1.  Financial Statements

 

QUANTRX BIOMEDICAL CORPORATION

BALANCE SHEETS

 

  

September 30,

  

December 31,

 
  

2021

  

2020

 

 

 

(Unaudited)

  

(Audited)

 
ASSETS        

Current Assets:

        

Cash and cash equivalents

 $21,051  $55,428 

Total Current Assets

  21,051   55,428 
         

Investments, net of impairment of $500,000

  -   - 

Total Assets

 $21,051  $55,428 
         

LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)

        

Current Liabilities:

        

Accounts payable

 $18,754  $16,312 

Notes Payable

  1,387,694   1,387,694 

Accrued interest on notes payable

  1,017,012   866,226 

Notes Payable, related party and accrued interest

  177,649   166,251 

Total Liabilities

  2,601,109   2,436,483 
         

Commitments and Contingencies

  -   - 
         

Stockholders’ Equity (Deficit):

        

Preferred stock; $0.01 par value, 25,000,000 authorized shares; 20,500,000 shares designated as Series B Convertible Preferred Stock; Series B Convertible Preferred shares 6,196,893 issued and outstanding

  61,969   61,969 

Common stock; $0.01 par value; 150,000,000 authorized; 78,696,461 shares issued and outstanding

  786,964   786,964 

Stock to be issued

  8,600   8,600 

Additional paid-in capital

  48,876,398   48,876,398 

Accumulated deficit

  (52,313,989)  (52,114,986)

Total Stockholders’ Equity (Deficit)

  (2,580,058)  (2,381,055)
         

Total Liabilities and Stockholders’ Equity (Deficit)

 $21,051  $55,428 

 

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

 

 

-1-

 

 

 

QUANTRX BIOMEDICAL CORPORATION

STATEMENTS OF OPERATIONS

(unaudited)

 

   

For the Three Months Ended
September 30,

   

For the Nine Months Ended
September 30,

 
   

2021

   

2020

   

2021

   

2020

 

Costs and Operating Expense:

                               

Sales, general and administrative

  $ 2,810     $ 1,908     $ 9,457     $ 8,797  

Professional fees

    5,732       8,784       27,363       32,235  

Professional fees, related party

    -       -       -       10,500  

Total Costs and Operating Expenses

    8,542       10,692       36,820       51,532  
                                 

LOSS FROM OPERATIONS:

    (8,542 )     (10,692 )     (36,820 )     (51,532 )
                                 

Other Income (Expense):

                               

Interest Expense

    (54,473 )     (54,474 )     (162,183 )     (162,247 )

Gain (loss) on forgiveness of accounts payable

    -       -       -       24,610  

Total Other Income (Expense), net

    (54,473 )     (54,474 )     (162,183 )     (137,637 )
                                 

Profit (Loss) Before Taxes

    (63,015 )     (65,166 )     (199,003 )     (189,169 )
                                 

Provision for Income Taxes

    -       -       -       -  
                                 

Net Profit (Loss)

  $ (63,015 )   $ (65,166 )   $ (199,003 )   $ (189,169 )
                                 

Basic and Diluted Net Loss per Common Share

  $ (0.00 )   $ (0.00 )   $ (0.00 )   $ (0.00 )
                                 

Basic and Diluted Weighted Average Shares Used in per Share Calculation

    78,696,461       78,696,461       78,696,461       78,696,461  

 

The accompanying condensed notes are an integral part of these interim financial statements.

 

-2-

 

 

 

QUANTRX BIOMEDICAL CORPORATION

STATEMENTS OF CASH FLOWS

(unaudited)   

 

   

For the Nine Months Ended

 
   

September 30,

 
   

2021

   

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net loss

  $ (199,003 )   $ (189,169 )

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

               

Loss (gain) on forgiveness of accounts payable

    -       (24,610 )

(Increase) Decrease in:

               

Prepaid expense

    -       7,000  

Increase (Decrease) in:

               

Accounts Payable

    2,442       (24,553 )

Accrued interest

    162,184       162,247  

Net Cash Used by Operating Activities

    (34,377 )     (69,085 )
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Net Cash Provided by Investing Activities

    -       -  
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Net Cash Provided (Used) by Financing Activities

    -       -  
                 

Net Increase (Decrease) in Cash and Cash Equivalents

    (34,377 )     (69,085 )
                 

Cash and Cash Equivalents, Beginning of Period

    55,428       130,351  
                 

Cash and Cash Equivalents, End of Period

  $ 21,051     $ 61,266  
                 

Supplemental Cash Flow Disclosures:

               

Interest expense paid in cash

  $ -     $ -  

Income tax paid

  $ -     $ -  

 

The accompanying condensed notes are an integral part of these interim financial statements.

 

-3-

 

 

 

QUANTRX BIOMEDICAL CORPORATION

STATEMENTS OF STOCKHOLDERSEQUITY

(unaudited)

 

  

Preferred Stock

  

Common Stock

                 
  

Number of
Shares

  

Amount

  

Number of Shares

  

Amount

  

Additional Paid-in Capital

  

 

Stock to be

Issued

  Accumulated Deficit  Total 

For the three months ended September 30, 2020

                             

BALANCE, July 1, 2020

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600   (51,986,255)  (2,172,993)

Net loss for the three months ended September 30, 2020

                          (65,166)  (65,166)

BALANCE, September 30, 2020

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600  $(52,051,421) $(2,317,490)
                                 

For the nine months ended September 30, 2020

                             

BALANCE, January 1, 2020

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600   (51,862,252)  (2,128,321)

Net loss for the nine months ended September 30, 2020

  -   -   -   -   -   -   (189,169)  (189,169)

BALANCE, September 30, 2020

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600  $(52,051,421) $(2,317,490)
                                 

For the three months ended September 30, 2021

                         

BALANCE, July 1, 2021

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600   (52,250,974)  (2,517,043)

Net loss for the three months ended September 30, 2021

                          (63,015)  (63,015)

BALANCE, September 30, 2021

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600  $(52,313,989) $(2,580,058)
                                 

For the nine months ended September 30, 2021

                             

BALANCE, January 1, 2021

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600   (52,114,986)  (2,381,055)

Net loss for the nine months ended September 30, 2021

  -   -   -   -   -   -   (199,003)  (199,003)

BALANCE, September 30, 2021

  6,196,893  $61,969   78,696,461  $786,964  $48,876,398  $8,600  $(52,313,989) $(2,580,058)

 

The accompanying condensed notes are an integral part of these interim financial statements.

 

-4-

 

 

QUANTRX BIOMEDICAL CORPORATION

CONDENSED NOTES TO FINANCIAL STATEMENTS

(unaudited)

 

 

1.  DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

 

Overview

 

As used in this Quarterly Report on Form 10-Q, the terms “Company”, “we”, “our”, “us”, “QuantRx” or the “Company” refers to QuantRx Biomedical Corporation, unless context otherwise requires. QuantRx Biomedical Corporation was incorporated on December 5, 1986, in the State of Nevada. Our principal business office is located at 10190 SW 90th Avenue, Tualatin, Oregon 97062.

 

We have developed and intend to commercialize our patented miniform pads (“PADs”) and PAD based over-the-counter products for the treatment of hemorrhoids, minor vaginal infection, urinary incontinence, general catamenial uses and other medical needs. We are also developing and intend to commercialize genomic diagnostics for the laboratory market, based on our lateral flow patents. Our platforms include: inSync®, UniqueTM, and OEM branded over-the-counter and laboratory testing products based on our core intellectual property related to our PAD technology.

 

The continuation of our operations remains contingent upon the receipt of additional financing required to execute our business and operating plan, which is currently focused on the commercialization of our PAD technology either directly or through a joint venture or other relationship intended to increase shareholder value. In the interim, we have nominal operations, focused principally on maintaining our intellectual property portfolio and maintaining compliance with the public company reporting requirements. In order to continue as a going concern, we will need to raise capital, which may include through the issuance of debt and/or equity securities. No assurances can be given that we will be able to obtain additional financing under terms favorable to us, if at all, or otherwise successfully develop a business and operating plan or enter into an alternative relationship to commercialize our PAD technology.

 

Our principal business line consists of over-the-counter commercialization of our InSync feminine hygienic interlabial pad, the Unique® Miniform for hemorrhoid application, and other treated miniforms (the “OTC Business”), as well as maintaining established and continuing licensing relationships related to these products. We also own certain diagnostic testing technology (the “Diagnostic Business”, and collectively with the OTC Business, the "Business") that is based on our lateral flow patents. Management believes this corporate structure permits us to more efficiently explore options to maximize the value of our products and intellectual property portfolio, with the objective of maximizing the value of the Businesses for the benefit of the Company and our shareholders.

 

Our current focus is to obtain additional working capital necessary to continue as a going concern, and to develop a longer term financing and operating plan to: (i) commercialize our over-the-counter products either directly or through joint ventures, mergers or similar transactions intended to capitalize on potential commercial opportunities; (ii) contract manufacturing of our over-the-counter products to third parties while maintaining control over the manufacturing process; (iii) maintain our intellectual property portfolio with respect to patents and licenses pertaining to both the OTC Business and the Diagnostics Business; and (iv) maximize the value of our investments in non-core assets. As a result of our current financial condition, however, our efforts in the short-term will be focused on obtaining financing necessary to maintain the Company as a going concern.

 

We follow the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the items under Regulation S-X required by the instructions to Form 10-Q. They may not include all information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on April 15, 2021. The interim unaudited financial statements presented herein should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported losses, total assets or stockholders’ equity.

 

-5-

 

 

 

2.  MANAGEMENT STATEMENT REGARDING GOING CONCERN

 

We currently are not generating revenue from operations, and do not anticipate generating meaningful revenue from operations or otherwise in the short-term. We have historically financed our operations primarily through issuances of equity and the proceeds from the issuance of promissory notes. In the past, we also provided for our cash needs by issuing Common Stock, options and warrants for certain operating costs, including consulting and professional fees, as well as divesting its minority equity interests and equity-linked investments. In addition, in the fiscal year ended 2018, we received cash payments as consideration for the sale and transfer of the Purchased Assets to Preprogen.

 

Our history of operating losses, limited cash resources and the absence of an operating plan necessary to capitalize on our assets raise substantial doubt about our ability to continue as a going concern absent a strengthening of our cash position. Management is currently pursuing various funding options, including seeking debt or equity financing, licensing opportunities and the sale of certain investment holdings, as well as a strategic, merger or other transaction to obtain additional funding to continue the development of, and to successfully commercialize, our products. There can be no assurance that the Company will be successful in its efforts. Should we be unable to obtain adequate financing or generate sufficient revenue in the future, the Company’s business, result of operations, liquidity and financial condition would be materially and adversely harmed, and we will be unable to continue as a going concern.

 

There can be no assurance that, assuming we are able to strengthen its cash position, we will achieve sufficient revenue or profitable operations to continue as a going concern.

 

 

3.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the financial statements.

 

Accounting for Share-Based Payments.  The Company follows the provisions of ASC Topic 718, which establishes the accounting for transactions in which an entity exchanges equity securities for services and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company uses the Black-Scholes option pricing model in determining fair value. Accordingly, compensation cost has been recognized using the fair value method and expected term accrual requirements as prescribed. During the three and nine months ended September 30, 2021 and 2020, the Company had no stock compensation expense.

 

In June 2018, the FASB issued an accounting pronouncement (FASB ASU 2018-07) to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted (for “emerging growth company” beginning after December 15, 2019). The Company has adopted this standard effective from January 1, 2020 and the adoption of this standard did not have any significant impact on the unaudited condensed consolidated interim financial statements.

 

In the case of modifications, the Black-Scholes model is used to value modified warrants on the modification date by applying the revised assumptions. The difference between the fair value of the warrants prior to the modification and after the modification determines the incremental value. In the past, the Company has modified warrants in connection with the issuance of certain notes and note extensions. These modified warrants were originally issued in connection with previous private placement investments. In the case of debt issuances, the warrants were accounted for as original issuance discount based on their relative fair values. When modified in connection with a note issuance, the Company recognizes the incremental value as a part of the debt discount calculation, using its relative fair value in accordance with ASC Topic 470-20,Debt with Conversion and Other Options”. When modified in connection with note extensions, the Company recognized the incremental value as prepaid interest, which is expensed over the term of the extension.

 

The fair value of each share-based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year. During the three and nine months ended September 30, 2021 and 2020, the Company did not make any Black-Scholes model assumptions, as no share-based payments were made during those periods.

 

- 6-

 
 

Risk-Free Interest Rate. The interest rate used is based on the yield of a U.S. Treasury security as of the beginning of the year.

 

Expected Volatility. The Company calculates the expected volatility based on historical volatility of monthly stock prices over a three-year period.

 

Dividend Yield. The Company has never paid cash dividends, and does not currently intend to pay cash dividends, and thus has assumed a 0% dividend yield.

 

Expected Term. For options, the Company has no history of employee exercise patterns. Therefore, the Company uses the option term as the expected term. For warrants, the Company uses the actual term of the warrant. 

 

Pre-Vesting Forfeitures. Estimates of pre-vesting option forfeitures are based on Company experience. The Company will adjust its estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods.

 

Earnings per Share. The Company computes net income (loss) per common share in accordance with ASC Topic 260. Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.

 

For the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020, basic and diluted earnings per share were the same at the reporting dates of the accompanying financial statements, as including common stock equivalents in the calculation of diluted earnings per share would have been antidilutive.

 

As of September 30, 2021, the Company has no outstanding options, as all options expired in 2020. As of September 30, 2021, the Company had outstanding warrants exercisable for 15,000,000 shares of its common stock $0.01 par value (“Common Stock”), and outstanding preferred stock, $0.01 par value (“Preferred Stock”) convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the nine months ended September 30, 2021. At September 30, 2021, the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of September 30, 2020, the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.

 

As of September 30, 2020, the Company had no outstanding options. As of September 30, 2020, the Company had outstanding warrants exercisable for 15,000,000 shares of its Common Stock, and outstanding Preferred Stock convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the nine months ended September 30, 2020. At September 30, 2020, the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of September 30, 2020, the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.

 

Fair Value. The Company has adopted ASC Topic 820,Fair Value Measurements and Disclosures” for both financial and nonfinancial assets and liabilities. The Company has not elected the fair value option for any of its assets or liabilities.

 

Use of Estimates. The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, and include certain estimates and assumptions, which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Accordingly, actual results may differ from those estimates.

 

Reclassifications. Prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have no effect on net loss or earnings per share.

 

Recent Accounting Pronouncements.

 

Management has considered all recent accounting pronouncements in the current period and identified no pronouncements that would have an impact on our financial statements.  

 

-7-

 

 

 

4.  INVESTMENTS

 

In December 2018, the Company acquired a 15% interest in Preprogen LLC pursuant to the Preprogen Transaction.  On October 8, 2018, the Preprogen Agreement was amended to provide for, among other things, the release of funds held in escrow related to the manufacture of the miniform pads (the “Preprogen Amendment”), which resulted in both parties receiving $200,583 in cash. As consideration for the Preprogen Amendment, the Company agreed to pay Preprogen a royalty of 5% from the sale of all over-the-counter miniform products; provided, however, that such royalty payments shall terminate when Preprogen has received $200,000 in aggregate consideration from the royalties paid by us, and that we shall be entitled to offset such royalty payments due and payable to Preprogen by amounts equal to certain other payments otherwise due and payable to us by Preprogen pursuant to the terms of the Preprogen Agreement. At December 31, 2019, we had fully impaired our investment in Preprogen.

 

 

5.  INTANGIBLE ASSETS

 

On December 15, 2017, the Company entered into an agreement with Preprogen, pursuant to which the parties agreed to the sale, assignment, and license-back of certain assets, including intellectual property transferred to Preprogen necessary to the development, manufacture, marketing and sale of the Company’s OTC miniform products for the feminine hygiene and hemorrhoid treatment markets. At December 31, 2019, the Company had reduced its capitalized intangible assets to zero.

 

 

6.  CONVERTIBLE NOTES PAYABLE

 

During the years 2014 to 2017, the Company issued a series of Bridge Notes (the “Bridge Notes”) in aggregate principal amount of $1,489,694. The Bridge Notes matured on various dates through 2018. The Bridge Notes are in default and bear interest rates ranging from 12% to 18%. As of September 30, 2021, the Bridge Notes are due and payable.

 

At September 30, 2021 and December 31, 2020, the Company’s Convertible Notes Payable are as follows:

 

  

September 30,
2021

  

December 31,

2020

 

Notes Payable

 $1,387,694  $1,387,694 

Accrued Interest

 $1,017,012  $866,226 

Notes Payable, related party

 $102,000  $102,000 

Accrued Interest, related Party

 $75,649  $64,251 

Total Notes Payable

 $2,582,355  $2,420,171 

 

Notes Payable, Related Party.

 

As of September 30, 2021 and December 31, 2020, the Company owed Mr. Abrams, a director of the Company, an aggregate total of $177,649 and $166,251, respectively, for outstanding principal and accrued and unpaid interest on certain Bridge Notes. The Bridge Notes held by Mr. Abrams are in default and bear interest rates ranging from 12% to 18%. As of September 30, 2021, the Bridge Notes are due and payable.

 

 

7.  RELATED PARTY TRANSACTIONS

 

In November 2018, the Company authorized payment of $3,500 per month to Dr. Hirschman for his services as Chief Executive Officer and $3,500 to Mr. Abrams for his services as a Director. Effective January 1, 2020, Mr. Abrams has waived the payments of fees for his services. Effective April 1, 2020, Dr. Hirschman has waived the payment of is fees as Chief Executive Officer.

 

During the nine months ended September 30, 2020, Dr. Hirschman received aggregate compensation of $3,500 of consulting fees for services as Chief Executive Officer. The Company applied $7,000 of prepaid consulting fees to services for February and March 2020.

 

During the nine months ended September 30, 2020, Mr. Abrams received payment of accrued consulting fees for services during 2019 in the amount of $14,085. Subsequent to September 30, 2020, Mr. Abrams did not receive or accrue new compensation as he has waived his compensation for services as a Director.

 

As of September 30, 2021 and December 31, 2020, the Company owed Mr. Abrams, a director of the Company, an aggregate total of $177,649 and $166,251, respectively, for outstanding principal and accrued and unpaid interest on certain Bridge Notes.

 

-8-

 

 

 

8.  PREFERRED STOCK

 

The Company has authorized 25,000,000 shares of Preferred Stock, of which 20,500,000 are designated as Series B Convertible Preferred Stock, $0.01 par value, with a stated value of approximately $204,000 (“Series B Preferred”). The remaining authorized preferred shares had not been designated by the Company as of September 30, 2021.

 

Series B Convertible Preferred Stock

 

The Series B Preferred ranks senior to the Company’s Common Stock for purposes of liquidation preference, and to all other classes and series of equity securities of the Company that by their terms did not rank senior to the Series B Preferred (“Junior Stock”). Holders of the Series B Preferred are entitled to receive cash dividends, when, as and if declared by the Board of Directors, and they shall be entitled to receive an amount equal to the cash dividend declared on one share of Common Stock multiplied by the number of shares of Common Stock equal to the outstanding shares of Series B Preferred, on an as converted basis. The holders of Series B Preferred have voting rights to vote as a class on matters (a) amending, altering or repealing the provisions of the Series B Preferred so as to adversely affect any right, preference, privilege or voting power of the Series B Preferred; or (b) to affect any distribution with respect to Junior Stock. At any time, the holders of Series B Preferred may, subject to limitations, elect to convert all or any portion of their Series B Preferred into fully paid non-assessable shares of the Company’s Common Stock at a 1:1 conversion rate.

 

In July and August 2017, the Company entered into Note Purchase Agreements with two existing stockholders, pursuant to which the Company issued the 2017 Bridge Notes in the aggregate principal amount of $86,000. As additional consideration for the purchase of the 2017 Bridge Notes, the Company has reserved for issuance an aggregate of 860,000 shares of Series B Preferred to be issued to the purchasers of the 2017 Bridge Notes. The Company has valued the Series B Preferred and has recorded a discount on the 2017 Bridge Notes of $7,818, which was amortized in full during the year ended December 31, 2017.

 

In April 2018, the Company completed the purchase of 10,480,049 shares of Series B Preferred (the “Purchased Shares”) from an institutional shareholder for an aggregate purchase price of $20,000. Following this transaction, the shareholder no longer holds shares in the Company.

 

As of September 30, 2021 and December 31, 2020, the Company had 6,196,893 shares of Series B Preferred issued and outstanding, with a liquidation preference of $61,969 and convertible into 6,196,893 shares of the Company’s Common Stock. 

 

 

9.  COMMON STOCK, OPTIONS AND WARRANTS

 

The Company has authorized 150,000,000 shares of its Common Stock for issuance, of which 78,696,461 were issued and outstanding at each September 30, 2021 and December 31, 2020.

 

During the nine months ended September 30, 2021 and 2020, there were no warrants issued by the Company. As of September 30, 2021, the Company has one warrant issued and outstanding, this warrant was issued in December 2018 to Preprogen’s designee to purchase up to 15.0 million shares of the Company’s Common Stock, at an exercise price of $0.05 per share. The warrant was exercisable immediately upon issuance, and expires on December 14, 2022.

 

2007 Incentive and Non-Qualified Stock Option Plan.  The fair value of options granted under the Company’s 2007 Incentive and Non-Qualified Stock Option Plan is recorded as compensation expense over the vesting period, or, for performance based awards, the expected service term. The Company did not issue any options during the nine months ended September 30, 2021 or 2020. As of September 30, 2021, the Company has no options issued and outstanding.

 

 

10.  SUBSEQUENT EVENTS

 

We have evaluated subsequent events through the date of this filing in accordance with the Subsequent Events Topic of the FASB ASC 855, and have determined that no subsequent events occurred that are reasonably likely to impact these financial statements.

 

-9-

 

 

 

ITEM 2.  Managements Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion of our financial condition should be read in conjunction with the financial statements and notes to financial statements included elsewhere in this filing. The following discussion (as well as statements in Item 1 above and elsewhere) contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 that involve risks and uncertainties. Some or all of the results anticipated by these forward-looking statements may not occur. Forward-looking statements involve known and unknown risks and uncertainties including, but not limited to, trends in the biotechnology, healthcare, and pharmaceutical sectors of the economy; competitive pressures and technological developments from domestic and foreign genetic research and development organizations which may affect the nature and potential viability of our business strategy; and private or public sector demand for products and services similar to what we plan to commercialize. We disclaim any intention or obligation to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

 

Unless otherwise indicated or the context otherwise requires, all references in this report to we, our, us, the Company or similar terms refer to QuantRx Biomedical Corporation, a Nevada corporation.

 

Overview

 

We have developed and intend to commercialize our patented miniform PADs and PAD based over-the-counter products for the treatment of hemorrhoids, minor vaginal infection, urinary incontinence, general catamenial uses and other medical needs. We are also developing and intend to commercialize genomic diagnostics for the laboratory market, based on our lateral flow patents. Our platforms include: inSync®, UniqueTM, and OEM branded over-the-counter and laboratory testing products based on our core intellectual property related to our PAD technology.

 

The continuation of our operations remains contingent upon the receipt of additional financing required to execute our business and operating plan, which is currently focused on the commercialization of our PAD technology, either directly or through a joint venture or other relationship intended to increase shareholder value. In the interim, we have nominal operations, focused principally on maintaining our intellectual property portfolio and maintaining compliance with the public company reporting requirements. In order to continue as a going concern, we will need to raise capital, which may include through the issuance of debt and/or equity securities. No assurances can be given that we will be able to obtain additional financing under terms favorable to us, if at all, or otherwise successfully develop a business and operating plan or enter into an alternative relationship to commercialize our PAD technology. 

 

Our principal business line consists of over-the-counter commercialization of our InSync feminine hygienic interlabial pad, the Unique® Miniform for hemorrhoid application, and other treated miniforms (the “OTC Business”), as well as maintaining established and continuing licensing relationships related to the OTC Business. We also own certain diagnostic testing technology (the “Diagnostic Business”, and with the OTC Business, the “Businesses”) that is based on our lateral flow patents. Management believes this corporate structure permits us to more efficiently explore options to maximize the value of the Businesses, with the objective of maximizing the value of the Businesses for the benefit of the Company and our shareholders.

 

Our current focus is to obtain additional working capital necessary to continue as a going concern, and to develop a longer term financing and operating plan to: (i) commercialize our over-the-counter products either directly or through joint ventures, mergers or similar transactions intended to capitalize on potential commercial opportunities; (ii) contract manufacturing of our over-the-counter products to third parties while maintaining control over the manufacturing process; (iii) maintain our intellectual property portfolio with respect to patents and licenses pertaining to both the OTC Business and the Diagnostics Business; and (iv) maximize the value of our investments in non-core assets. As a result of our current financial condition, however, our efforts in the short-term will be focused on obtaining financing necessary to maintain the Company as a going concern.

 

While we expect the impacts of COVID-19 to have an adverse effect on our ability to successfully obtain working capital necessary to continue as a going concern and to develop a longer term financing and operating plan, we are unable to predict the extent or nature of these impacts at this time.

 

The following discussion of our financial condition should be read together with our financial statements and related notes included in the Annual Report on Form 10-K, filed on April 15, 2021.

 

-10-

 

 

Results of Operations

 

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

 

The Company did not generate any revenue during the three and nine months ended September 30, 2021 or the three and nine months ended September 30, 2020. The absence of revenue is due to no royalty revenue attributable to the Company’s PAD technology received during the periods. Management does not anticipate that the Company will generate any revenue until such time as the Company develops a plan to commercialize its over-the-counter products, which is contingent on the receipt of financing.

 

Sales, general and administrative expense for the three months ended September 30, 2021 and 2020 was $2,810 and $1,908, respectively. Sales, general and administrative expense for the nine months ended September 30, 2021 and 2020 was $9,457 and $8,797, respectively. Sales, general and administrative expense includes, but is not limited to, consulting expense, office and insurance expense, accounting and other costs to maintain compliance with the Company’s reporting requirements to the Securities and Exchange Commission (the “SEC”). The increase in the 2021 three and nine months are due primarily to increased costs by the Company’s stock transfer agent.

 

Professional fees for the three months ended September 30, 2021 and 2020 were $5,732 and $8,874, respectively. Professional fees for the nine months ended September 30, 2021 and 2020 were $27,363 and $32,235, respectively. Professional fees include the costs of legal, consulting and auditing services provided to us. The decrease in professional fees for the three and nine months ended September 30, 2021 relate to lower legal expenses in the 2021 period compared to the 2020 period.

 

Professional fees, related party for the three months ended September 30, 2021 and 2020 were $0 and $0, respectively. Professional fees, related party for the nine months ended September 30, 2021 and 2020 were $0 and $10,500, respectively. The decrease in these professional fees relate to lower fees paid to Dr. Hirschman for services to the Company, as Dr. Hirschman waived consulting fees effective April 1, 2020, and Mr. Abrams has waived consulting fees effective January 1, 2020.

 

The Company did not incur any research and development costs during the three or nine months ended September 30, 2021 or 2020. The Company did not engage in any research and development efforts in the 2020 period, nor does the Company expect to engage in any research and development activity until funding is secured and it develops a plan to commercialize its products.

 

Interest expense for the three months ended September 30, 2021 and 2020 was $54,473 and $54,474, respectively. Interest expense for the nine months ended September 30, 2021 and 2020 was $162,183 and $162,247, respectively.  The decrease in interest expense during the three months ended September 30, 2021 is due to timing. The decrease in interest expense in the nine months ended September 30, 2021 is due to interest on insurance financing during the 2020 period.

 

During the nine months ended September 30, 2020, the Company recorded a gain on forgiveness of accounts payable in aggregate amount of $24,610 resulting from one of the Company’s vendors forgiving its fees due for professional services incurred through December 31, 2019.

 

During the three months ended September 30, 2021, the Company recorded net loss of $63,015 compared to net loss for the three months ended September 30, 2020 of $65,166. During the nine months ended September 30, 2021, the Company recorded net loss of $199,003 compared to net loss for the nine months ended September 30, 2020 of $189,169 The decrease in net loss during the three months ended September 30, 2021 is due primarily to lower expenses in the 2021 period. The increase in net loss during the nine month periods in 2021 is primarily due to the gain recorded in the 2020 period and overall lower expenses during the 2021 period, as discussed above.

 

The Company expects net loss to decrease in future periods due to the current suspension of its active operations and its lack of revenue. The Company does not expect to re-commence active operations until it is able to secure financing necessary to execute its business and operating plan, including the development and launch of its over-the-counter products, or to otherwise capitalize on our PAD technology.

 

-11-

 

 

Liquidity and Capital Resources

 

At September 30, 2021, the Company had cash and cash equivalents of $21,051 as compared to $55,428 at December 31, 2020.

 

The Company had cash and cash equivalents of $61,266 at September 30, 2020. The decrease in cash and cash equivalents between the 2021 and 2020 periods of approximately $40,215 is primarily attributable to cash used for operations in the 2020 and 2021 periods.

 

During the nine months ended September 30, 2021, the Company used $34,377 for operating activities, compared to $69,085 used during the nine months ended September 30, 2020. The net overall decrease in cash used for operating activities during the nine months ended September 30, 2021 is attributable primarily to decreased operating expenses in the in the 2021 period.

 

The Company has not generated sufficient revenue from operations to meet its operating expense. The Company requires additional funding to complete the development and launch of its over-the-counter products, or to otherwise capitalize on its PAD technology. The Company has historically financed its operations primarily through issuances of equity and the proceeds of debt instruments. In the past, the Company has also provided for its cash needs by issuing shares of its Common Stock, options and warrants for certain operating costs, including consulting and professional fees. In addition, in the fiscal year ended December 31, 2018, the Company received a large cash payment from Preprogen as consideration for the sale and transfer of the certain assets.

 

Management believes that given the current economic environment and the continuing need to strengthen our cash position, there is substantial doubt about our ability to continue as a going concern. We are pursuing various funding options, including licensing opportunities and the sale of investment holdings, as well other financing transactions, to obtain additional funding to continue the development of our products and bring them to commercial markets. There can be no assurance that we will be successful in our efforts. Should we be unable to raise adequate financing or generate sufficient revenue in the future, the Company’s business, results of operations, liquidity and financial condition would be materially and adversely harmed.

 

The Company believes that the ability of the Company to re-commence operations, and therefore continue as a going concern is dependent upon its ability to do any or all of the following: 

 

 

obtain adequate sources of funding to pay operating expense and fund long-term business operations;

 

 

enter into a licensing or other relationship that allows the Company to commercialize its products;

 

 

manage or control working capital requirements by reducing operating expense; and

 

 

develop new, and enhance existing, relationships with product distributors and other points of distribution for the Company’s products.

 

There can be no assurance that the Company will be successful in achieving its short- or long-term plans as set forth above, or that such plans, if consummated, will enable the Company to obtain profitable operations or continue in the long-term as a going concern. 

 

Off-Balance Sheet Arrangements

 

We have not entered into any transactions with unconsolidated entities in which we have financial guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose us to material continuing risks, contingent liabilities or any other obligations under a variable interest in an unconsolidated entity that provides us with financing, liquidity, market risk or credit risk support.

 

Critical Accounting Policies

 

The listing below is not intended to be a comprehensive list of all of our accounting policies. In most cases, the accounting treatment of a particular transaction is specifically dictated by accounting principles generally accepted in the United States. In addition to the listing below accounting policies listed below, please See to Note 3 to the Financial Statements. 

 

-12-

 

 

Impairment of Assets

 

We assess the impairment of long-lived assets, including our other intangible assets, at least annually or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The determination of related estimated useful lives and whether or not these assets are impaired involves significant judgments, related primarily to the future profitability and/or future value of the assets. Changes in our strategic plan and/or market conditions could significantly impact these judgments and could require adjustments to recorded asset balances. We hold investments in companies having operations or technologies in areas which are within or adjacent to our strategic focus when acquired, all of which are privately held and whose values are difficult to determine. We record an investment impairment charge if we believe an investment has experienced a decline in value that is other than temporary. Future changes in our strategic direction, adverse changes in market conditions or poor operating results of underlying investments could result in losses or an inability to recover the carrying value of the investments that may not be reflected in an investment’s current carrying value, thereby possibly requiring an impairment charge in the future.

 

In determining fair value of assets, the Company bases estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets that are not readily apparent from other sources. Actual fair value may differ from management estimates resulting in potential impairments causing material changes to certain assets and results of operations.  

 

Genomics USA, Inc. (GUSA): During the years ended December 31, 2018 and 2017, the Company had recorded losses of $0 and $169,948, respectively, on an impairment on the value of its Common Stock investment in GUSA. The Company has valued the impairment based on the dilution of the Company’s investment and certain other factors. As of December 31, 2018, the Company has fully impaired its investment in GUSA.

 

Global Cancer Diagnostics, Inc. (GCD): During 2015, the Company entered into a letter of intent with GCD, which provided for, among other things, the advance payment of $50,000 towards a potential business combination. During 2017, the Company determined the full amount of the advanced payment to be impaired.

 

Preprogen: During the years ended December 31, 2019 and December 31, 2018, the Company recorded a loss of $222,000 and $278,000, respectively, on an impairment on the value of its investment in Preprogen. The Company has valued the impairment based on an evaluation by a third-party using the value of similar investments in comparable companies. The Company has fully impaired its investment in Preprogen.

 

Deferred Taxes

 

We recognize deferred tax assets and liabilities based on differences between the financial statement carrying amounts and tax bases of assets and liabilities, which requires management to perform estimates of future transactions and their respective valuations. We review our deferred tax assets for recoverability and establish a valuation allowance if it is more likely than not that the Company will not realize the benefit of the net deferred tax asset. At June 30, 2021 and December 31, 2020, a valuation allowance has been established. The likelihood of a material change in the valuation allowance depends on our ability to generate sufficient future taxable income. In the future, if management determines that the likelihood exists to utilize the Company’s deferred tax assets, a reduction of the valuation allowance could materially increase the Company’s net deferred tax asset.

 

ITEM 4.  Controls and Procedures

 

(a)  Evaluation of disclosure controls and procedures.

 

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operations of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of September 30, 2021. Based on this evaluation, and in light of the previously disclosed material weaknesses in internal controls over financial reporting, the Company’s Chief Executive Officer, who also serves as its Principal Financial Officer, concluded that our disclosure controls and procedures were not effective.

 

(b)  Changes in internal controls over financial reporting.

 

There has been no change in our internal control over financial reporting that occurred during our most recent fiscal year that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. There has been no progress towards remediating our previously disclosed material weakness due to the lack of funding. 

 

-13-

 

 

PART II - OTHER INFORMATION

 

ITEM 1.  Legal Proceedings

 

As of the date hereof, there are no material pending legal proceedings to which we are a party to or of which any of our property is the subject.

 

ITEM 1A.  Risk Factors

 

Our results of operations and financial condition are subject to numerous risks and uncertainties described in our Annual Report on Form 10-K for our fiscal year ended December 31, 2020, filed on April 15, 2021. You should carefully consider these risk factors in conjunction with the other information contained in this Quarterly Report. Should any of these risks materialize, our business, financial condition and future prospects could be negatively impacted. As of September 30, 2021, there have been no material changes to the disclosures made in the above-referenced Form 10-K.

 

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.

 

ITEM 6.  Exhibits

 

Exhibit

 

Description

31

 

Certification of Chief Executive Officer and Principal Financial and Accounting Officer required under Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as amended.

32

 

Certification of Chief Executive Officer and Principal Financial and Accounting Officer required under Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350.

101.INS

 

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH

 

Inline XBRL Taxonomy Extension Schema Document

101.CAL

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104   Cover Page Interactive Data File (embedded within the Inline XBRL Document and included in Exhibit 101)

 

-14-

 

 

SIGNATURES

 

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

 

Date: November 16, 2021

/s/ Shalom Hirschman

 

Shalom Hirschman

Principal Executive, Financial and Accounting Officer

 

 

 

 

 

 

 

-15-
EX-31 2 ex_305054.htm EXHIBIT 31 ex_305054.htm

 

Exhibit 31

 

CERTIFICATION OF PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER PURSUANT TO EXCHANGE ACT RULE 13A-14(A)

 

I, Shalom Hirschman, certify that:

 

1. I have reviewed this Quarterly report on Form 10-Q of QuantRx Biomedical Corporation;

 

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

 

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

 

4. The registrant’s other certifying officer(s) 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 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

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

 

5. The registrant’s other certifying officer(s) 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 control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: November 16, 2021

/s/ Shalom Hirschman

 
 

Shalom Hirschman

Principal Executive and Financial Officer

 

 

 

 
EX-32 3 ex_305055.htm EXHIBIT 32 ex_305055.htm

 

Exhibit 32

 

CERTIFICATION PURSUANT TO 18 U.S.C. Sec.1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the accompanying Quarterly Report of QuantRx Biomedical Corporation (the "Company") on Form 10-Q for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on or about the date hereof (the "Report"), the undersigned, Shalom Hirschman, Principal Executive and Principal Financial and Accounting Officer of the Company, certifies, to my best knowledge and belief, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)  The Report fully complies with the requirements of section 13(a) 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 result of operations of the Company.

 

 

Date:  November 16, 2021

/s/ Shalom Hirschman

 
 

Shalom Hirschman

Principal Executive and Financial Officer

 

 

 
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-2317490 6196893 61969 78696461 786964 48876398 8600 -52250974 -2517043 -63015 -63015 6196893 61969 78696461 786964 48876398 8600 -52313989 -2580058 6196893 61969 78696461 786964 48876398 8600 -52114986 -2381055 -199003 -199003 6196893 61969 78696461 786964 48876398 8600 -52313989 -2580058 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">1.</em></b> <b> DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>Overview</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As used in this Quarterly Report on Form <em style="font: inherit;">10</em>-Q, the terms “<i>Company</i>”, “<i>we</i>”, “<i>our</i>”, “<i>us</i>”, “<i>QuantRx</i>” or the “<i>Company</i>” refers to QuantRx Biomedical Corporation, unless context otherwise requires. QuantRx Biomedical Corporation was incorporated on <em style="font: inherit;"> December 5, 1986, </em>in the State of Nevada. Our principal business office is located at <em style="font: inherit;">10190</em> SW <em style="font: inherit;">90th</em> Avenue, Tualatin, Oregon <em style="font: inherit;">97062.</em></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">We have developed and intend to commercialize our patented miniform pads (“<i>PADs</i>”) and PAD based over-the-counter products for the treatment of hemorrhoids, minor vaginal infection, urinary incontinence, general catamenial uses and other medical needs. We are also developing and intend to commercialize genomic diagnostics for the laboratory market, based on our lateral flow patents. Our platforms include: inSync®, UniqueTM, and OEM branded over-the-counter and laboratory testing products based on our core intellectual property related to our PAD technology.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The continuation of our operations remains contingent upon the receipt of additional financing required to execute our business and operating plan, which is currently focused on the commercialization of our PAD technology either directly or through a joint venture or other relationship intended to increase shareholder value. In the interim, we have nominal operations, focused principally on maintaining our intellectual property portfolio and maintaining compliance with the public company reporting requirements. In order to continue as a going concern, we will need to raise capital, which <em style="font: inherit;"> may </em>include through the issuance of debt and/or equity securities. <em style="font: inherit;">No</em> assurances can be given that we will be able to obtain additional financing under terms favorable to us, if at all, or otherwise successfully develop a business and operating plan or enter into an alternative relationship to commercialize our PAD technology.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Our principal business line consists of over-the-counter commercialization of our InSync feminine hygienic interlabial pad, the Unique® Miniform for hemorrhoid application, and other treated miniforms (the “<i>OTC Business</i>”), as well as maintaining established and continuing licensing relationships related to these products. We also own certain diagnostic testing technology (the “<i>Diagnostic Business</i>”, and collectively with the OTC Business, the "<i>Business</i>") that is based on our lateral flow patents. Management believes this corporate structure permits us to more efficiently explore options to maximize the value of our products and intellectual property portfolio, with the objective of maximizing the value of the Businesses for the benefit of the Company and our shareholders.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Our current focus is to obtain additional working capital necessary to continue as a going concern, and to develop a longer term financing and operating plan to: (i) commercialize our over-the-counter products either directly or through joint ventures, mergers or similar transactions intended to capitalize on potential commercial opportunities; (ii) contract manufacturing of our over-the-counter products to <em style="font: inherit;">third</em> parties while maintaining control over the manufacturing process; (iii) maintain our intellectual property portfolio with respect to patents and licenses pertaining to both the OTC Business and the Diagnostics Business; and (iv) maximize the value of our investments in non-core assets. As a result of our current financial condition, however, our efforts in the short-term will be focused on obtaining financing necessary to maintain the Company as a going concern.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">We follow the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the items under Regulation S-<em style="font: inherit;">X</em> required by the instructions to Form <em style="font: inherit;">10</em>-Q. They <em style="font: inherit;"> may </em><em style="font: inherit;">not</em> include all information and footnotes required by United States Generally Accepted Accounting Principles (“<i>GAAP</i>”) for complete financial statements. However, except as disclosed herein, there have been <em style="font: inherit;">no</em> material changes in the information disclosed in the notes to the financial statements for the year ended <em style="font: inherit;"> December 31, 2020 </em>included in the Company’s Annual Report on Form <em style="font: inherit;">10</em>-K, filed with the Securities and Exchange Commission on <em style="font: inherit;"> April 15, 2021. </em>The interim unaudited financial statements presented herein should be read in conjunction with those financial statements included in the Form <em style="font: inherit;">10</em>-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>are <em style="font: inherit;">not</em> necessarily indicative of the results that <em style="font: inherit;"> may </em>be expected for the year ending <em style="font: inherit;"> December 31, 2021. </em></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had <em style="font: inherit;">no</em> effect on previously reported losses, total assets or stockholders’ equity.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">2.</em></b> <b> MANAGEMENT STATEMENT REGARDING GOING CONCERN</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">We currently are <em style="font: inherit;">not</em> generating revenue from operations, and do <em style="font: inherit;">not</em> anticipate generating meaningful revenue from operations or otherwise in the short-term. We have historically financed our operations primarily through issuances of equity and the proceeds from the issuance of promissory notes. In the past, we also provided for our cash needs by issuing Common Stock, options and warrants for certain operating costs, including consulting and professional fees, as well as divesting its minority equity interests and equity-linked investments. In addition, in the fiscal year ended <em style="font: inherit;">2018,</em> we received cash payments as consideration for the sale and transfer of the Purchased Assets to Preprogen.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Our history of operating losses, limited cash resources and the absence of an operating plan necessary to capitalize on our assets raise substantial doubt about our ability to continue as a going concern absent a strengthening of our cash position. Management is currently pursuing various funding options, including seeking debt or equity financing, licensing opportunities and the sale of certain investment holdings, as well as a strategic, merger or other transaction to obtain additional funding to continue the development of, and to successfully commercialize, our products. There can be <em style="font: inherit;">no</em> assurance that the Company will be successful in its efforts. Should we be unable to obtain adequate financing or generate sufficient revenue in the future, the Company’s business, result of operations, liquidity and financial condition would be materially and adversely harmed, and we will be unable to continue as a going concern.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">There can be <em style="font: inherit;">no</em> assurance that, assuming we are able to strengthen its cash position, we will achieve sufficient revenue or profitable operations to continue as a going concern.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">3.</em></b> <b> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the financial statements.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i/></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Accounting for Share-Based Payments.</i>  The Company follows the provisions of ASC Topic <em style="font: inherit;">718,</em> which establishes the accounting for transactions in which an entity exchanges equity securities for services and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company uses the Black-Scholes option pricing model in determining fair value. Accordingly, compensation cost has been recognized using the fair value method and expected term accrual requirements as prescribed. During the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;">2020,</em> the Company had <span style="-sec-ix-hidden:c79437769"><span style="-sec-ix-hidden:c79437820"><span style="-sec-ix-hidden:c79437821"><span style="-sec-ix-hidden:c79437822">no</span></span></span></span> stock compensation expense.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In <em style="font: inherit;"> June </em><em style="font: inherit;">2018,</em> the FASB issued an accounting pronouncement (FASB ASU <em style="font: inherit;">2018</em>-<em style="font: inherit;">07</em>) to expand the scope of ASC Topic <em style="font: inherit;">718,</em> Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after <em style="font: inherit;"> December </em><em style="font: inherit;">15,</em> <em style="font: inherit;">2018,</em> with early adoption permitted (for “emerging growth company” beginning after <em style="font: inherit;"> December </em><em style="font: inherit;">15,</em> <em style="font: inherit;">2019</em>). The Company has adopted this standard effective from <em style="font: inherit;"> January </em><em style="font: inherit;">1,</em> <em style="font: inherit;">2020</em> and the adoption of this standard did <em style="font: inherit;">not</em> have any significant impact on the unaudited condensed consolidated interim financial statements.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In the case of modifications, the Black-Scholes model is used to value modified warrants on the modification date by applying the revised assumptions. The difference between the fair value of the warrants prior to the modification and after the modification determines the incremental value. In the past, the Company has modified warrants in connection with the issuance of certain notes and note extensions. These modified warrants were originally issued in connection with previous private placement investments. In the case of debt issuances, the warrants were accounted for as original issuance discount based on their relative fair values. When modified in connection with a note issuance, the Company recognizes the incremental value as a part of the debt discount calculation, using its relative fair value in accordance with ASC Topic <em style="font: inherit;">470</em>-<em style="font: inherit;">20,</em> “<i>Debt with Conversion and Other Options</i>”. When modified in connection with note extensions, the Company recognized the incremental value as prepaid interest, which is expensed over the term of the extension.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The fair value of each share-based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year. During the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;">2020,</em> the Company did <em style="font: inherit;">not</em> make any Black-Scholes model assumptions, as <span style="-sec-ix-hidden:c79437788"><span style="-sec-ix-hidden:c79437823"><span style="-sec-ix-hidden:c79437824"><span style="-sec-ix-hidden:c79437825">no</span></span></span></span> share-based payments were made during those periods.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Risk-Free Interest Rate.</i> The interest rate used is based on the yield of a U.S. Treasury security as of the beginning of the year.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Expected Volatility.</i> The Company calculates the expected volatility based on historical volatility of monthly stock prices over a <em style="font: inherit;">three</em>-year period.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Dividend Yield.</i> The Company has never paid cash dividends, and does <em style="font: inherit;">not</em> currently intend to pay cash dividends, and thus has assumed a <em style="font: inherit;">0%</em> dividend yield.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Expected Term.</i> For options, the Company has <em style="font: inherit;">no</em> history of employee exercise patterns. Therefore, the Company uses the option term as the expected term. For warrants, the Company uses the actual term of the warrant. </p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Pre-Vesting Forfeitures.</i> Estimates of pre-vesting option forfeitures are based on Company experience. The Company will adjust its estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"/> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i/></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Earnings per Share.</i> The Company computes net income (loss) per common share in accordance with ASC Topic <em style="font: inherit;">260.</em> Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">For the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2020, </em>basic and diluted earnings per share were the same at the reporting dates of the accompanying financial statements, as including common stock equivalents in the calculation of diluted earnings per share would have been antidilutive.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2021, </em>the Company has <span style="-sec-ix-hidden:c79437799">no</span> outstanding options, as all options expired in <em style="font: inherit;">2020.</em> As of <em style="font: inherit;"> September 30, 2021, </em>the Company had outstanding warrants exercisable for 15,000,000 shares of its common stock $0.01 par value (“<i>Common Stock</i>”), and outstanding preferred stock, $0.01 par value (“<i>Preferred Stock</i>”) convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021. </em>At <em style="font: inherit;"> September 30, 2021, </em>the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of <em style="font: inherit;"> September 30, 2020, </em>the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2020, </em>the Company had <em style="font: inherit;">no</em> outstanding options. As of <em style="font: inherit;"> September 30, 2020, </em>the Company had outstanding warrants exercisable for 15,000,000 shares of its Common Stock, and outstanding Preferred Stock convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2020. </em>At <em style="font: inherit;"> September 30, 2020, </em>the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of <em style="font: inherit;"> September 30, 2020, </em>the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"/> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i/></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Fair</i> <i>Value.</i> The Company has adopted ASC Topic <em style="font: inherit;">820,</em> “<i>Fair</i> <i>Value</i> <i>Measurements and</i> <i>Disclosures</i>” for both financial and nonfinancial assets and liabilities. The Company has <em style="font: inherit;">not</em> elected the fair value option for any of its assets or liabilities.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"/> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i/></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Use</i> <i>of</i> <i>Estimates.</i> The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, and include certain estimates and assumptions, which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Accordingly, actual results <em style="font: inherit;"> may </em>differ from those estimates.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"/> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i/></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Reclassifications.</i> Prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have <em style="font: inherit;">no</em> effect on net loss or earnings per share.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"/> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i/></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Recent Accounting Pronouncements</i>.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Management has considered all recent accounting pronouncements in the current period and identified <em style="font: inherit;">no</em> pronouncements that would have an impact on our financial statements.  </p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"/> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Accounting for Share-Based Payments.</i>  The Company follows the provisions of ASC Topic <em style="font: inherit;">718,</em> which establishes the accounting for transactions in which an entity exchanges equity securities for services and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company uses the Black-Scholes option pricing model in determining fair value. Accordingly, compensation cost has been recognized using the fair value method and expected term accrual requirements as prescribed. During the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;">2020,</em> the Company had <span style="-sec-ix-hidden:c79437769"><span style="-sec-ix-hidden:c79437820"><span style="-sec-ix-hidden:c79437821"><span style="-sec-ix-hidden:c79437822">no</span></span></span></span> stock compensation expense.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In <em style="font: inherit;"> June </em><em style="font: inherit;">2018,</em> the FASB issued an accounting pronouncement (FASB ASU <em style="font: inherit;">2018</em>-<em style="font: inherit;">07</em>) to expand the scope of ASC Topic <em style="font: inherit;">718,</em> Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after <em style="font: inherit;"> December </em><em style="font: inherit;">15,</em> <em style="font: inherit;">2018,</em> with early adoption permitted (for “emerging growth company” beginning after <em style="font: inherit;"> December </em><em style="font: inherit;">15,</em> <em style="font: inherit;">2019</em>). The Company has adopted this standard effective from <em style="font: inherit;"> January </em><em style="font: inherit;">1,</em> <em style="font: inherit;">2020</em> and the adoption of this standard did <em style="font: inherit;">not</em> have any significant impact on the unaudited condensed consolidated interim financial statements.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In the case of modifications, the Black-Scholes model is used to value modified warrants on the modification date by applying the revised assumptions. The difference between the fair value of the warrants prior to the modification and after the modification determines the incremental value. In the past, the Company has modified warrants in connection with the issuance of certain notes and note extensions. These modified warrants were originally issued in connection with previous private placement investments. In the case of debt issuances, the warrants were accounted for as original issuance discount based on their relative fair values. When modified in connection with a note issuance, the Company recognizes the incremental value as a part of the debt discount calculation, using its relative fair value in accordance with ASC Topic <em style="font: inherit;">470</em>-<em style="font: inherit;">20,</em> “<i>Debt with Conversion and Other Options</i>”. When modified in connection with note extensions, the Company recognized the incremental value as prepaid interest, which is expensed over the term of the extension.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The fair value of each share-based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year. During the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;">2020,</em> the Company did <em style="font: inherit;">not</em> make any Black-Scholes model assumptions, as <span style="-sec-ix-hidden:c79437788"><span style="-sec-ix-hidden:c79437823"><span style="-sec-ix-hidden:c79437824"><span style="-sec-ix-hidden:c79437825">no</span></span></span></span> share-based payments were made during those periods.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Risk-Free Interest Rate.</i> The interest rate used is based on the yield of a U.S. Treasury security as of the beginning of the year.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Expected Volatility.</i> The Company calculates the expected volatility based on historical volatility of monthly stock prices over a <em style="font: inherit;">three</em>-year period.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Dividend Yield.</i> The Company has never paid cash dividends, and does <em style="font: inherit;">not</em> currently intend to pay cash dividends, and thus has assumed a <em style="font: inherit;">0%</em> dividend yield.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Expected Term.</i> For options, the Company has <em style="font: inherit;">no</em> history of employee exercise patterns. Therefore, the Company uses the option term as the expected term. For warrants, the Company uses the actual term of the warrant. </p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Pre-Vesting Forfeitures.</i> Estimates of pre-vesting option forfeitures are based on Company experience. The Company will adjust its estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Earnings per Share.</i> The Company computes net income (loss) per common share in accordance with ASC Topic <em style="font: inherit;">260.</em> Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">For the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and the <em style="font: inherit;">three</em> and <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2020, </em>basic and diluted earnings per share were the same at the reporting dates of the accompanying financial statements, as including common stock equivalents in the calculation of diluted earnings per share would have been antidilutive.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2021, </em>the Company has <span style="-sec-ix-hidden:c79437799">no</span> outstanding options, as all options expired in <em style="font: inherit;">2020.</em> As of <em style="font: inherit;"> September 30, 2021, </em>the Company had outstanding warrants exercisable for 15,000,000 shares of its common stock $0.01 par value (“<i>Common Stock</i>”), and outstanding preferred stock, $0.01 par value (“<i>Preferred Stock</i>”) convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021. </em>At <em style="font: inherit;"> September 30, 2021, </em>the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of <em style="font: inherit;"> September 30, 2020, </em>the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2020, </em>the Company had <em style="font: inherit;">no</em> outstanding options. As of <em style="font: inherit;"> September 30, 2020, </em>the Company had outstanding warrants exercisable for 15,000,000 shares of its Common Stock, and outstanding Preferred Stock convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2020. </em>At <em style="font: inherit;"> September 30, 2020, </em>the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of <em style="font: inherit;"> September 30, 2020, </em>the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> 15000000 0.01 0.01 6196893 860000 860000 20000000.0 15000000 6196893 860000 860000 20000000.0 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Fair</i> <i>Value.</i> The Company has adopted ASC Topic <em style="font: inherit;">820,</em> “<i>Fair</i> <i>Value</i> <i>Measurements and</i> <i>Disclosures</i>” for both financial and nonfinancial assets and liabilities. The Company has <em style="font: inherit;">not</em> elected the fair value option for any of its assets or liabilities.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Use</i> <i>of</i> <i>Estimates.</i> The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, and include certain estimates and assumptions, which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Accordingly, actual results <em style="font: inherit;"> may </em>differ from those estimates.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Reclassifications.</i> Prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have <em style="font: inherit;">no</em> effect on net loss or earnings per share.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Recent Accounting Pronouncements</i>.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Management has considered all recent accounting pronouncements in the current period and identified <em style="font: inherit;">no</em> pronouncements that would have an impact on our financial statements.  </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">4.</em></b> <b> INVESTMENTS</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In <em style="font: inherit;"> December 2018, </em>the Company acquired a 15% interest in Preprogen LLC pursuant to the Preprogen Transaction.  On <em style="font: inherit;"> October 8, 2018, </em>the Preprogen Agreement was amended to provide for, among other things, the release of funds held in escrow related to the manufacture of the miniform pads (the “<i>Preprogen Amendment</i>”), which resulted in both parties receiving $200,583 in cash. As consideration for the Preprogen Amendment, the Company agreed to pay Preprogen a royalty of 5% from the sale of all over-the-counter miniform products; <i>provided, however,</i> that such royalty payments shall terminate when Preprogen has received $200,000 in aggregate consideration from the royalties paid by us, and that we shall be entitled to offset such royalty payments due and payable to Preprogen by amounts equal to certain other payments otherwise due and payable to us by Preprogen pursuant to the terms of the Preprogen Agreement. At <em style="font: inherit;"> December 31, 2019, </em>we had fully impaired our investment in Preprogen.</p> 0.15 200583 0.05 200000 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">5.</em></b> <b> INTANGIBLE ASSETS</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">On <em style="font: inherit;"> December 15, 2017, </em>the Company entered into an agreement with Preprogen, pursuant to which the parties agreed to the sale, assignment, and license-back of certain assets, including intellectual property transferred to Preprogen necessary to the development, manufacture, marketing and sale of the Company’s OTC miniform products for the feminine hygiene and hemorrhoid treatment markets. At <em style="font: inherit;"> December 31, 2019, </em>the Company had reduced its capitalized intangible assets to zero.</p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b><em style="font: inherit;">6.</em></b> <b> CONVERTIBLE NOTES PAYABLE</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">During the years <em style="font: inherit;">2014</em> to <em style="font: inherit;">2017,</em> the Company issued a series of Bridge Notes (the “<i>Bridge Notes</i>”) in aggregate principal amount of $1,489,694. The Bridge Notes matured on various dates through <em style="font: inherit;">2018.</em> The Bridge Notes are in default and bear interest rates ranging from 12% to <span style="-sec-ix-hidden:c79437838">18%.</span> As of <em style="font: inherit;"> September 30, 2021, </em>the Bridge Notes are due and payable.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">At <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;"> December 31, 2020, </em>the Company’s Convertible Notes Payable are as follows:</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px;"><tbody><tr style="vertical-align: bottom;"><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><b>September 30, </b><br/> <b>2021</b></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><b>December 31, </b></b></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><b>2020</b></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"><td style="font-family: Times New Roman; font-size: 10pt; width: 70%;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Notes Payable</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">1,387,694</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">1,387,694</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Accrued Interest</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><span style="-sec-ix-hidden:c79437846">1,017,012</span></td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><span style="-sec-ix-hidden:c79437847">866,226</span></td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Notes Payable, related party</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">102,000</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">102,000</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Accrued Interest, related Party</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">75,649</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">64,251</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total Notes Payable</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,582,355</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,420,171</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td></tr> </tbody></table> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Notes Payable, Related Party.</i></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;"> December 31, 2020, </em>the Company owed Mr. Abrams, a director of the Company, an aggregate total of $177,649 and $166,251, respectively, for outstanding principal and accrued and unpaid interest on certain Bridge Notes. The Bridge Notes held by Mr. Abrams are in default and bear interest rates ranging from 12% to <em style="font: inherit;">18%.</em> As of <em style="font: inherit;"> September 30, 2021, </em>the Bridge Notes are due and payable.</p> 1489694 0.12 0.18 <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px;"><tbody><tr style="vertical-align: bottom;"><td style="font-family: Times New Roman; font-size: 10pt;"> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><b>September 30, </b><br/> <b>2021</b></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><b>December 31, </b></b></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><b>2020</b></b></p> </td><td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"><td style="font-family: Times New Roman; font-size: 10pt; width: 70%;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Notes Payable</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">1,387,694</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">1,387,694</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Accrued Interest</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><span style="-sec-ix-hidden:c79437846">1,017,012</span></td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><span style="-sec-ix-hidden:c79437847">866,226</span></td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Notes Payable, related party</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">102,000</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">102,000</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Accrued Interest, related Party</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">75,649</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">64,251</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"><td style="font-family: Times New Roman; font-size: 10pt;"> <p style="font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total Notes Payable</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,582,355</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">2,420,171</td><td style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td></tr> </tbody></table> 1387694 1387694 102000 102000 75649 64251 2582355 2420171 177649 166251 0.12 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">7.</em></b> <b> RELATED PARTY TRANSACTIONS</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In <em style="font: inherit;"> November 2018, </em>the Company authorized payment of $3,500 per month to Dr. Hirschman for his services as Chief Executive Officer and $3,500 to Mr. Abrams for his services as a Director. Effective <em style="font: inherit;"> January 1, 2020, </em>Mr. Abrams has waived the payments of fees for his services. Effective <em style="font: inherit;"> April 1, 2020, </em>Dr. Hirschman has waived the payment of is fees as Chief Executive Officer.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">During the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2020, </em>Dr. Hirschman received aggregate compensation of $3,500 of consulting fees for services as Chief Executive Officer. The Company applied $7,000 of prepaid consulting fees to services for <em style="font: inherit;"> February </em>and <em style="font: inherit;"> March 2020.</em></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">During the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2020, </em>Mr. Abrams received payment of accrued consulting fees for services during <em style="font: inherit;">2019</em> in the amount of $14,085. Subsequent to <em style="font: inherit;"> September 30, 2020, </em>Mr. Abrams did <span style="-sec-ix-hidden:c79437863">not</span> receive or accrue new compensation as he has waived his compensation for services as a Director.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;"> December 31, 2020, </em>the Company owed Mr. Abrams, a director of the Company, an aggregate total of $177,649 and $166,251, respectively, for outstanding principal and accrued and unpaid interest on certain Bridge Notes.</p> 3500 3500 3500 7000 14085 177649 166251 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b><em style="font: inherit;">8.</em></b> <b> PREFERRED STOCK</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The Company has authorized 25,000,000 shares of Preferred Stock, of which 20,500,000 are designated as Series B Convertible Preferred Stock, $0.01 par value, with a stated value of approximately $204,000 (“<i>Series B Preferred</i>”). The remaining authorized preferred shares had <em style="font: inherit;">not</em> been designated by the Company as of <em style="font: inherit;"> September 30, 2021.</em></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i>Series B Convertible Preferred Stock</i></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The Series B Preferred ranks senior to the Company’s Common Stock for purposes of liquidation preference, and to all other classes and series of equity securities of the Company that by their terms did <em style="font: inherit;">not</em> rank senior to the Series B Preferred (“<i>Junior Stock</i>”). Holders of the Series B Preferred are entitled to receive cash dividends, when, as and if declared by the Board of Directors, and they shall be entitled to receive an amount equal to the cash dividend declared on <em style="font: inherit;">one</em> share of Common Stock multiplied by the number of shares of Common Stock equal to the outstanding shares of Series B Preferred, on an as converted basis. The holders of Series B Preferred have voting rights to vote as a class on matters (a) amending, altering or repealing the provisions of the Series B Preferred so as to adversely affect any right, preference, privilege or voting power of the Series B Preferred; or (b) to affect any distribution with respect to Junior Stock. At any time, the holders of Series B Preferred <em style="font: inherit;"> may, </em>subject to limitations, elect to convert all or any portion of their Series B Preferred into fully paid non-assessable shares of the Company’s Common Stock at a <span style="-sec-ix-hidden:c79437875">1:1</span> conversion rate.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In <em style="font: inherit;"> July </em>and <em style="font: inherit;"> August 2017, </em>the Company entered into Note Purchase Agreements with <em style="font: inherit;">two</em> existing stockholders, pursuant to which the Company issued the <em style="font: inherit;">2017</em> Bridge Notes in the aggregate principal amount of $86,000. As additional consideration for the purchase of the <em style="font: inherit;">2017</em> Bridge Notes, the Company has reserved for issuance an aggregate of 860,000 shares of Series B Preferred to be issued to the purchasers of the <em style="font: inherit;">2017</em> Bridge Notes. The Company has valued the Series B Preferred and has recorded a discount on the <em style="font: inherit;">2017</em> Bridge Notes of $7,818, which was amortized in full during the year ended <em style="font: inherit;"> December 31, 2017.</em></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In <em style="font: inherit;"> April 2018, </em>the Company completed the purchase of 10,480,049 shares of Series B Preferred (the “<i>Purchased Shares</i>”) from an institutional shareholder for an aggregate purchase price of $20,000. Following this transaction, the shareholder <em style="font: inherit;">no</em> longer holds shares in the Company.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">As of <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;"> December 31, 2020, </em>the Company had 6,196,893 shares of Series B Preferred issued and outstanding, with a liquidation preference of $61,969 and convertible into 6,196,893 shares of the Company’s Common Stock. </p> 25000000 20500000 0.01 204000 86000 860000 7818 10480049 20000 6196893 61969 6196893 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b><em style="font: inherit;">9.</em></b> <b> COMMON STOCK, OPTIONS AND WARRANTS</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The Company has authorized 150,000,000 shares of its Common Stock for issuance, of which 78,696,461 were issued and outstanding at each <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;"> December 31, 2020.</em></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">During the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>and <em style="font: inherit;">2020,</em> there were <em style="font: inherit;">no</em> warrants issued by the Company. As of <em style="font: inherit;"> September 30, 2021, </em>the Company has <em style="font: inherit;">one</em> warrant issued and outstanding, this warrant was issued in <em style="font: inherit;"> December 2018 </em>to Preprogen’s designee to purchase up to 15.0 million shares of the Company’s Common Stock, at an exercise price of $0.05 per share. The warrant was exercisable immediately upon issuance, and expires on <em style="font: inherit;"> December 14, 2022.</em></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><i><em style="font: inherit;">2007</em></i> <i>Incentive</i> <i>and</i> <i>Non-Qualified</i> <i>Stock</i> <i>Option</i> <i>Plan. </i> The fair value of options granted under the Company’s <em style="font: inherit;">2007</em> Incentive and Non-Qualified Stock Option Plan is recorded as compensation expense over the vesting period, or, for performance based awards, the expected service term. The Company did <span style="-sec-ix-hidden:c79437907"><span style="-sec-ix-hidden:c79437908">not</span></span> issue any options during the <em style="font: inherit;">nine</em> months ended <em style="font: inherit;"> September 30, 2021 </em>or <em style="font: inherit;">2020.</em> As of <em style="font: inherit;"> September 30, 2021, </em>the Company has <em style="font: inherit;">no</em> options issued and outstanding.</p> 150000000 78696461 15000000.0 0.05 <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><em style="font: inherit;">10.</em></b> <b> SUBSEQUENT</b> <b>EVENTS</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">We have evaluated subsequent events through the date of this filing in accordance with the Subsequent Events Topic of the FASB ASC <em style="font: inherit;">855,</em> and have determined that <em style="font: inherit;">no</em> subsequent events occurred that are reasonably likely to impact these financial statements.</p> XML 10 R1.htm IDEA: XBRL DOCUMENT v3.21.2
Document And Entity Information - shares
9 Months Ended
Sep. 30, 2021
Nov. 15, 2021
Document Information [Line Items]    
Entity Central Index Key 0000820608  
Entity Registrant Name QUANTRX BIOMEDICAL CORP  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2021  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 000-17119  
Entity Incorporation, State or Country Code NV  
Entity Tax Identification Number 33-0202574  
Entity Address, Address Line One 10190 SW 90th Avenue  
Entity Address, City or Town Tualatin  
Entity Address, State or Province OR  
Entity Address, Postal Zip Code 97062  
City Area Code 212  
Local Phone Number 980-2235  
Entity Current Reporting Status Yes  
Entity Interactive Data Current No  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Title of 12(g) Security Common Stock, par value $0.01 per share  
Entity Common Stock, Shares Outstanding   78,696,461
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.21.2
Balance Sheets (Current Period Unaudited) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Current Assets:    
Cash and cash equivalents $ 21,051 $ 55,428
Total Current Assets 21,051 55,428
Investments, net of impairment of $500,000 0 0
Total Assets 21,051 55,428
Current Liabilities:    
Accounts payable 18,754 16,312
Notes Payable 1,387,694 1,387,694
Accrued interest on notes payable 1,017,012 866,226
Notes Payable, related party and accrued interest 177,649 166,251
Total Liabilities 2,601,109 2,436,483
Commitments and Contingencies 0 0
Stockholders’ Equity (Deficit):    
Preferred stock; $0.01 par value, 25,000,000 authorized shares; 20,500,000 shares designated as Series B Convertible Preferred Stock; Series B Convertible Preferred shares 6,196,893 issued and outstanding 61,969 61,969
Common stock; $0.01 par value; 150,000,000 authorized; 78,696,461 shares issued and outstanding 786,964 786,964
Stock to be issued 8,600 8,600
Additional paid-in capital 48,876,398 48,876,398
Accumulated deficit (52,313,989) (52,114,986)
Total Stockholders’ Equity (Deficit) (2,580,058) (2,381,055)
Total Liabilities and Stockholders’ Equity (Deficit) $ 21,051 $ 55,428
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.21.2
Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Investments, impairment $ 500,000 $ 500,000
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred Stock, Shares Authorized (in shares) 25,000,000 25,000,000
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 150,000,000 150,000,000
Common stock, issued (in shares) 78,696,461 78,696,461
Common stock, outstanding (in shares) 78,696,461 78,696,461
Series B Preferred Stock [Member]    
Preferred Stock, Shares Authorized (in shares) 20,500,000 20,500,000
Preferred stock, Issued (in shares) 6,196,893 6,196,893
Preferred stock, Outstanding (in shares) 6,196,893 6,196,893
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.21.2
Statements of Operations (Unaudited) - USD ($)
$ / shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Costs and Operating Expense:        
Sales, general and administrative $ 2,810 $ 1,908 $ 9,457 $ 8,797
Professional fees 5,732 8,784 27,363 32,235
Professional fees, related party 0 0 0 10,500
Total Costs and Operating Expenses 8,542 10,692 36,820 51,532
LOSS FROM OPERATIONS: (8,542) (10,692) (36,820) (51,532)
Other Income (Expense):        
Interest Expense (54,473) (54,474) (162,183) (162,247)
Gain (loss) on forgiveness of accounts payable 0 0 0 24,610
Total Other Income (Expense), net (54,473) (54,474) (162,183) (137,637)
Profit (Loss) Before Taxes (63,015) (65,166) (199,003) (189,169)
Provision for Income Taxes 0 0 0 0
Net Profit (Loss) $ (63,015) $ (65,166) $ (199,003) $ (189,169)
Basic and Diluted Net Loss per Common Share (in dollars per share) $ (0) $ (0) $ (0) $ (0)
Basic and Diluted Weighted Average Shares Used in per Share Calculation (in shares) 78,696,461 78,696,461 78,696,461 78,696,461
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.21.2
Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss $ (63,015) $ (65,166) $ (199,003) $ (189,169)
Adjustments to reconcile net loss to net cash used by operating activities:        
Loss (gain) on forgiveness of accounts payable 0 0 0 (24,610)
(Increase) Decrease in:        
Prepaid expense     0 7,000
Increase (Decrease) in:        
Accounts Payable     2,442 (24,553)
Accrued interest     162,184 162,247
Net Cash Used by Operating Activities     (34,377) (69,085)
CASH FLOWS FROM INVESTING ACTIVITIES        
Net Cash Provided by Investing Activities     0 0
CASH FLOWS FROM FINANCING ACTIVITIES        
Net Cash Provided (Used) by Financing Activities     0 0
Net Increase (Decrease) in Cash and Cash Equivalents     (34,377) (69,085)
Cash and Cash Equivalents, Beginning of Period     55,428 130,351
Cash and Cash Equivalents, End of Period $ 21,051 $ 61,266 21,051 61,266
Supplemental Cash Flow Disclosures:        
Interest expense paid in cash     0 0
Income tax paid     $ 0 $ 0
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.21.2
Statements of Stockholders' Equity (Unaudited) - USD ($)
Preferred Shares [Member]
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Stock to be Issued [Member]
Retained Earnings [Member]
Total
BALANCE (in shares) at Dec. 31, 2019 6,196,893 78,696,461        
BALANCE at Dec. 31, 2019 $ 61,969 $ 786,964 $ 48,876,398 $ 8,600 $ (51,862,252) $ (2,128,321)
Net loss           (189,169)
BALANCE (in shares) at Sep. 30, 2020 6,196,893 78,696,461        
BALANCE at Sep. 30, 2020 $ 61,969 $ 786,964 48,876,398 8,600 (52,051,421) (2,317,490)
BALANCE (in shares) at Jun. 30, 2020 6,196,893 78,696,461        
BALANCE at Jun. 30, 2020 $ 61,969 $ 786,964 48,876,398 8,600 (51,986,255) (2,172,993)
Net loss         (65,166) (65,166)
BALANCE (in shares) at Sep. 30, 2020 6,196,893 78,696,461        
BALANCE at Sep. 30, 2020 $ 61,969 $ 786,964 48,876,398 8,600 (52,051,421) (2,317,490)
BALANCE (in shares) at Dec. 31, 2020 6,196,893 78,696,461        
BALANCE at Dec. 31, 2020 $ 61,969 $ 786,964 48,876,398 8,600 (52,114,986) (2,381,055)
Net loss         (199,003) (199,003)
BALANCE (in shares) at Sep. 30, 2021 6,196,893 78,696,461        
BALANCE at Sep. 30, 2021 $ 61,969 $ 786,964 48,876,398 8,600 (52,313,989) (2,580,058)
BALANCE (in shares) at Jun. 30, 2021 6,196,893 78,696,461        
BALANCE at Jun. 30, 2021 $ 61,969 $ 786,964 48,876,398 8,600 (52,250,974) (2,517,043)
Net loss         (63,015) (63,015)
BALANCE (in shares) at Sep. 30, 2021 6,196,893 78,696,461        
BALANCE at Sep. 30, 2021 $ 61,969 $ 786,964 $ 48,876,398 $ 8,600 $ (52,313,989) $ (2,580,058)
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.21.2
Note 1 - Description of Business and Basis of Presentation
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]

1.  DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

 

Overview

 

As used in this Quarterly Report on Form 10-Q, the terms “Company”, “we”, “our”, “us”, “QuantRx” or the “Company” refers to QuantRx Biomedical Corporation, unless context otherwise requires. QuantRx Biomedical Corporation was incorporated on December 5, 1986, in the State of Nevada. Our principal business office is located at 10190 SW 90th Avenue, Tualatin, Oregon 97062.

 

We have developed and intend to commercialize our patented miniform pads (“PADs”) and PAD based over-the-counter products for the treatment of hemorrhoids, minor vaginal infection, urinary incontinence, general catamenial uses and other medical needs. We are also developing and intend to commercialize genomic diagnostics for the laboratory market, based on our lateral flow patents. Our platforms include: inSync®, UniqueTM, and OEM branded over-the-counter and laboratory testing products based on our core intellectual property related to our PAD technology.

 

The continuation of our operations remains contingent upon the receipt of additional financing required to execute our business and operating plan, which is currently focused on the commercialization of our PAD technology either directly or through a joint venture or other relationship intended to increase shareholder value. In the interim, we have nominal operations, focused principally on maintaining our intellectual property portfolio and maintaining compliance with the public company reporting requirements. In order to continue as a going concern, we will need to raise capital, which may include through the issuance of debt and/or equity securities. No assurances can be given that we will be able to obtain additional financing under terms favorable to us, if at all, or otherwise successfully develop a business and operating plan or enter into an alternative relationship to commercialize our PAD technology.

 

Our principal business line consists of over-the-counter commercialization of our InSync feminine hygienic interlabial pad, the Unique® Miniform for hemorrhoid application, and other treated miniforms (the “OTC Business”), as well as maintaining established and continuing licensing relationships related to these products. We also own certain diagnostic testing technology (the “Diagnostic Business”, and collectively with the OTC Business, the "Business") that is based on our lateral flow patents. Management believes this corporate structure permits us to more efficiently explore options to maximize the value of our products and intellectual property portfolio, with the objective of maximizing the value of the Businesses for the benefit of the Company and our shareholders.

 

Our current focus is to obtain additional working capital necessary to continue as a going concern, and to develop a longer term financing and operating plan to: (i) commercialize our over-the-counter products either directly or through joint ventures, mergers or similar transactions intended to capitalize on potential commercial opportunities; (ii) contract manufacturing of our over-the-counter products to third parties while maintaining control over the manufacturing process; (iii) maintain our intellectual property portfolio with respect to patents and licenses pertaining to both the OTC Business and the Diagnostics Business; and (iv) maximize the value of our investments in non-core assets. As a result of our current financial condition, however, our efforts in the short-term will be focused on obtaining financing necessary to maintain the Company as a going concern.

 

We follow the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the items under Regulation S-X required by the instructions to Form 10-Q. They may not include all information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on April 15, 2021. The interim unaudited financial statements presented herein should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 

 

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported losses, total assets or stockholders’ equity.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.21.2
Note 2 - Management Statement Regarding Going Concern
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Substantial Doubt about Going Concern [Text Block]

2.  MANAGEMENT STATEMENT REGARDING GOING CONCERN

 

We currently are not generating revenue from operations, and do not anticipate generating meaningful revenue from operations or otherwise in the short-term. We have historically financed our operations primarily through issuances of equity and the proceeds from the issuance of promissory notes. In the past, we also provided for our cash needs by issuing Common Stock, options and warrants for certain operating costs, including consulting and professional fees, as well as divesting its minority equity interests and equity-linked investments. In addition, in the fiscal year ended 2018, we received cash payments as consideration for the sale and transfer of the Purchased Assets to Preprogen.

 

Our history of operating losses, limited cash resources and the absence of an operating plan necessary to capitalize on our assets raise substantial doubt about our ability to continue as a going concern absent a strengthening of our cash position. Management is currently pursuing various funding options, including seeking debt or equity financing, licensing opportunities and the sale of certain investment holdings, as well as a strategic, merger or other transaction to obtain additional funding to continue the development of, and to successfully commercialize, our products. There can be no assurance that the Company will be successful in its efforts. Should we be unable to obtain adequate financing or generate sufficient revenue in the future, the Company’s business, result of operations, liquidity and financial condition would be materially and adversely harmed, and we will be unable to continue as a going concern.

 

There can be no assurance that, assuming we are able to strengthen its cash position, we will achieve sufficient revenue or profitable operations to continue as a going concern.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.21.2
Note 3 - Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Significant Accounting Policies [Text Block]

3.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the financial statements.

 

Accounting for Share-Based Payments.  The Company follows the provisions of ASC Topic 718, which establishes the accounting for transactions in which an entity exchanges equity securities for services and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company uses the Black-Scholes option pricing model in determining fair value. Accordingly, compensation cost has been recognized using the fair value method and expected term accrual requirements as prescribed. During the three and nine months ended September 30, 2021 and 2020, the Company had no stock compensation expense.

 

In June 2018, the FASB issued an accounting pronouncement (FASB ASU 2018-07) to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted (for “emerging growth company” beginning after December 15, 2019). The Company has adopted this standard effective from January 1, 2020 and the adoption of this standard did not have any significant impact on the unaudited condensed consolidated interim financial statements.

 

In the case of modifications, the Black-Scholes model is used to value modified warrants on the modification date by applying the revised assumptions. The difference between the fair value of the warrants prior to the modification and after the modification determines the incremental value. In the past, the Company has modified warrants in connection with the issuance of certain notes and note extensions. These modified warrants were originally issued in connection with previous private placement investments. In the case of debt issuances, the warrants were accounted for as original issuance discount based on their relative fair values. When modified in connection with a note issuance, the Company recognizes the incremental value as a part of the debt discount calculation, using its relative fair value in accordance with ASC Topic 470-20,Debt with Conversion and Other Options”. When modified in connection with note extensions, the Company recognized the incremental value as prepaid interest, which is expensed over the term of the extension.

 

The fair value of each share-based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year. During the three and nine months ended September 30, 2021 and 2020, the Company did not make any Black-Scholes model assumptions, as no share-based payments were made during those periods.

 

Risk-Free Interest Rate. The interest rate used is based on the yield of a U.S. Treasury security as of the beginning of the year.

 

Expected Volatility. The Company calculates the expected volatility based on historical volatility of monthly stock prices over a three-year period.

 

Dividend Yield. The Company has never paid cash dividends, and does not currently intend to pay cash dividends, and thus has assumed a 0% dividend yield.

 

Expected Term. For options, the Company has no history of employee exercise patterns. Therefore, the Company uses the option term as the expected term. For warrants, the Company uses the actual term of the warrant. 

 

Pre-Vesting Forfeitures. Estimates of pre-vesting option forfeitures are based on Company experience. The Company will adjust its estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods.

 

Earnings per Share. The Company computes net income (loss) per common share in accordance with ASC Topic 260. Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.

 

For the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020, basic and diluted earnings per share were the same at the reporting dates of the accompanying financial statements, as including common stock equivalents in the calculation of diluted earnings per share would have been antidilutive.

 

As of September 30, 2021, the Company has no outstanding options, as all options expired in 2020. As of September 30, 2021, the Company had outstanding warrants exercisable for 15,000,000 shares of its common stock $0.01 par value (“Common Stock”), and outstanding preferred stock, $0.01 par value (“Preferred Stock”) convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the nine months ended September 30, 2021. At September 30, 2021, the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of September 30, 2020, the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.

 

As of September 30, 2020, the Company had no outstanding options. As of September 30, 2020, the Company had outstanding warrants exercisable for 15,000,000 shares of its Common Stock, and outstanding Preferred Stock convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the nine months ended September 30, 2020. At September 30, 2020, the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of September 30, 2020, the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.

 

Fair Value. The Company has adopted ASC Topic 820,Fair Value Measurements and Disclosures” for both financial and nonfinancial assets and liabilities. The Company has not elected the fair value option for any of its assets or liabilities.

 

Use of Estimates. The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, and include certain estimates and assumptions, which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Accordingly, actual results may differ from those estimates.

 

Reclassifications. Prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have no effect on net loss or earnings per share.

 

Recent Accounting Pronouncements.

 

Management has considered all recent accounting pronouncements in the current period and identified no pronouncements that would have an impact on our financial statements.  

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.21.2
Note 4 - Investments
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Investment [Text Block]

4.  INVESTMENTS

 

In December 2018, the Company acquired a 15% interest in Preprogen LLC pursuant to the Preprogen Transaction.  On October 8, 2018, the Preprogen Agreement was amended to provide for, among other things, the release of funds held in escrow related to the manufacture of the miniform pads (the “Preprogen Amendment”), which resulted in both parties receiving $200,583 in cash. As consideration for the Preprogen Amendment, the Company agreed to pay Preprogen a royalty of 5% from the sale of all over-the-counter miniform products; provided, however, that such royalty payments shall terminate when Preprogen has received $200,000 in aggregate consideration from the royalties paid by us, and that we shall be entitled to offset such royalty payments due and payable to Preprogen by amounts equal to certain other payments otherwise due and payable to us by Preprogen pursuant to the terms of the Preprogen Agreement. At December 31, 2019, we had fully impaired our investment in Preprogen.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.21.2
Note 5 - Intangible Assets
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]

5.  INTANGIBLE ASSETS

 

On December 15, 2017, the Company entered into an agreement with Preprogen, pursuant to which the parties agreed to the sale, assignment, and license-back of certain assets, including intellectual property transferred to Preprogen necessary to the development, manufacture, marketing and sale of the Company’s OTC miniform products for the feminine hygiene and hemorrhoid treatment markets. At December 31, 2019, the Company had reduced its capitalized intangible assets to zero.

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.21.2
Note 6 - Convertible Notes Payable
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Debt Disclosure [Text Block]

6.  CONVERTIBLE NOTES PAYABLE

 

During the years 2014 to 2017, the Company issued a series of Bridge Notes (the “Bridge Notes”) in aggregate principal amount of $1,489,694. The Bridge Notes matured on various dates through 2018. The Bridge Notes are in default and bear interest rates ranging from 12% to 18%. As of September 30, 2021, the Bridge Notes are due and payable.

 

At September 30, 2021 and December 31, 2020, the Company’s Convertible Notes Payable are as follows:

 

  

September 30,
2021

  

December 31,

2020

 

Notes Payable

 $1,387,694  $1,387,694 

Accrued Interest

 $1,017,012  $866,226 

Notes Payable, related party

 $102,000  $102,000 

Accrued Interest, related Party

 $75,649  $64,251 

Total Notes Payable

 $2,582,355  $2,420,171 

 

Notes Payable, Related Party.

 

As of September 30, 2021 and December 31, 2020, the Company owed Mr. Abrams, a director of the Company, an aggregate total of $177,649 and $166,251, respectively, for outstanding principal and accrued and unpaid interest on certain Bridge Notes. The Bridge Notes held by Mr. Abrams are in default and bear interest rates ranging from 12% to 18%. As of September 30, 2021, the Bridge Notes are due and payable.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Note 7 - Related Party Transactions
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

7.  RELATED PARTY TRANSACTIONS

 

In November 2018, the Company authorized payment of $3,500 per month to Dr. Hirschman for his services as Chief Executive Officer and $3,500 to Mr. Abrams for his services as a Director. Effective January 1, 2020, Mr. Abrams has waived the payments of fees for his services. Effective April 1, 2020, Dr. Hirschman has waived the payment of is fees as Chief Executive Officer.

 

During the nine months ended September 30, 2020, Dr. Hirschman received aggregate compensation of $3,500 of consulting fees for services as Chief Executive Officer. The Company applied $7,000 of prepaid consulting fees to services for February and March 2020.

 

During the nine months ended September 30, 2020, Mr. Abrams received payment of accrued consulting fees for services during 2019 in the amount of $14,085. Subsequent to September 30, 2020, Mr. Abrams did not receive or accrue new compensation as he has waived his compensation for services as a Director.

 

As of September 30, 2021 and December 31, 2020, the Company owed Mr. Abrams, a director of the Company, an aggregate total of $177,649 and $166,251, respectively, for outstanding principal and accrued and unpaid interest on certain Bridge Notes.

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Note 8 - Preferred Stock
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Preferred Stock [Text Block]

8.  PREFERRED STOCK

 

The Company has authorized 25,000,000 shares of Preferred Stock, of which 20,500,000 are designated as Series B Convertible Preferred Stock, $0.01 par value, with a stated value of approximately $204,000 (“Series B Preferred”). The remaining authorized preferred shares had not been designated by the Company as of September 30, 2021.

 

Series B Convertible Preferred Stock

 

The Series B Preferred ranks senior to the Company’s Common Stock for purposes of liquidation preference, and to all other classes and series of equity securities of the Company that by their terms did not rank senior to the Series B Preferred (“Junior Stock”). Holders of the Series B Preferred are entitled to receive cash dividends, when, as and if declared by the Board of Directors, and they shall be entitled to receive an amount equal to the cash dividend declared on one share of Common Stock multiplied by the number of shares of Common Stock equal to the outstanding shares of Series B Preferred, on an as converted basis. The holders of Series B Preferred have voting rights to vote as a class on matters (a) amending, altering or repealing the provisions of the Series B Preferred so as to adversely affect any right, preference, privilege or voting power of the Series B Preferred; or (b) to affect any distribution with respect to Junior Stock. At any time, the holders of Series B Preferred may, subject to limitations, elect to convert all or any portion of their Series B Preferred into fully paid non-assessable shares of the Company’s Common Stock at a 1:1 conversion rate.

 

In July and August 2017, the Company entered into Note Purchase Agreements with two existing stockholders, pursuant to which the Company issued the 2017 Bridge Notes in the aggregate principal amount of $86,000. As additional consideration for the purchase of the 2017 Bridge Notes, the Company has reserved for issuance an aggregate of 860,000 shares of Series B Preferred to be issued to the purchasers of the 2017 Bridge Notes. The Company has valued the Series B Preferred and has recorded a discount on the 2017 Bridge Notes of $7,818, which was amortized in full during the year ended December 31, 2017.

 

In April 2018, the Company completed the purchase of 10,480,049 shares of Series B Preferred (the “Purchased Shares”) from an institutional shareholder for an aggregate purchase price of $20,000. Following this transaction, the shareholder no longer holds shares in the Company.

 

As of September 30, 2021 and December 31, 2020, the Company had 6,196,893 shares of Series B Preferred issued and outstanding, with a liquidation preference of $61,969 and convertible into 6,196,893 shares of the Company’s Common Stock. 

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Note 9 - Common Stock, Options and Warrants
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

9.  COMMON STOCK, OPTIONS AND WARRANTS

 

The Company has authorized 150,000,000 shares of its Common Stock for issuance, of which 78,696,461 were issued and outstanding at each September 30, 2021 and December 31, 2020.

 

During the nine months ended September 30, 2021 and 2020, there were no warrants issued by the Company. As of September 30, 2021, the Company has one warrant issued and outstanding, this warrant was issued in December 2018 to Preprogen’s designee to purchase up to 15.0 million shares of the Company’s Common Stock, at an exercise price of $0.05 per share. The warrant was exercisable immediately upon issuance, and expires on December 14, 2022.

 

2007 Incentive and Non-Qualified Stock Option Plan.  The fair value of options granted under the Company’s 2007 Incentive and Non-Qualified Stock Option Plan is recorded as compensation expense over the vesting period, or, for performance based awards, the expected service term. The Company did not issue any options during the nine months ended September 30, 2021 or 2020. As of September 30, 2021, the Company has no options issued and outstanding.

XML 25 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Note 10 - Subsequent Events
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Subsequent Events [Text Block]

10.  SUBSEQUENT EVENTS

 

We have evaluated subsequent events through the date of this filing in accordance with the Subsequent Events Topic of the FASB ASC 855, and have determined that no subsequent events occurred that are reasonably likely to impact these financial statements.

XML 26 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Share-based Payment Arrangement [Policy Text Block]

Accounting for Share-Based Payments.  The Company follows the provisions of ASC Topic 718, which establishes the accounting for transactions in which an entity exchanges equity securities for services and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company uses the Black-Scholes option pricing model in determining fair value. Accordingly, compensation cost has been recognized using the fair value method and expected term accrual requirements as prescribed. During the three and nine months ended September 30, 2021 and 2020, the Company had no stock compensation expense.

 

In June 2018, the FASB issued an accounting pronouncement (FASB ASU 2018-07) to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted (for “emerging growth company” beginning after December 15, 2019). The Company has adopted this standard effective from January 1, 2020 and the adoption of this standard did not have any significant impact on the unaudited condensed consolidated interim financial statements.

 

In the case of modifications, the Black-Scholes model is used to value modified warrants on the modification date by applying the revised assumptions. The difference between the fair value of the warrants prior to the modification and after the modification determines the incremental value. In the past, the Company has modified warrants in connection with the issuance of certain notes and note extensions. These modified warrants were originally issued in connection with previous private placement investments. In the case of debt issuances, the warrants were accounted for as original issuance discount based on their relative fair values. When modified in connection with a note issuance, the Company recognizes the incremental value as a part of the debt discount calculation, using its relative fair value in accordance with ASC Topic 470-20,Debt with Conversion and Other Options”. When modified in connection with note extensions, the Company recognized the incremental value as prepaid interest, which is expensed over the term of the extension.

 

The fair value of each share-based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year. During the three and nine months ended September 30, 2021 and 2020, the Company did not make any Black-Scholes model assumptions, as no share-based payments were made during those periods.

 

Risk-Free Interest Rate. The interest rate used is based on the yield of a U.S. Treasury security as of the beginning of the year.

 

Expected Volatility. The Company calculates the expected volatility based on historical volatility of monthly stock prices over a three-year period.

 

Dividend Yield. The Company has never paid cash dividends, and does not currently intend to pay cash dividends, and thus has assumed a 0% dividend yield.

 

Expected Term. For options, the Company has no history of employee exercise patterns. Therefore, the Company uses the option term as the expected term. For warrants, the Company uses the actual term of the warrant. 

 

Pre-Vesting Forfeitures. Estimates of pre-vesting option forfeitures are based on Company experience. The Company will adjust its estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods.

 

Earnings Per Share, Policy [Policy Text Block]

Earnings per Share. The Company computes net income (loss) per common share in accordance with ASC Topic 260. Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.

 

For the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020, basic and diluted earnings per share were the same at the reporting dates of the accompanying financial statements, as including common stock equivalents in the calculation of diluted earnings per share would have been antidilutive.

 

As of September 30, 2021, the Company has no outstanding options, as all options expired in 2020. As of September 30, 2021, the Company had outstanding warrants exercisable for 15,000,000 shares of its common stock $0.01 par value (“Common Stock”), and outstanding preferred stock, $0.01 par value (“Preferred Stock”) convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the nine months ended September 30, 2021. At September 30, 2021, the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of September 30, 2020, the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.

 

As of September 30, 2020, the Company had no outstanding options. As of September 30, 2020, the Company had outstanding warrants exercisable for 15,000,000 shares of its Common Stock, and outstanding Preferred Stock convertible into 6,196,893 shares of its Common Stock, which options, warrants and Preferred Stock were deemed to be antidilutive for the nine months ended September 30, 2020. At September 30, 2020, the Company had reserved for issuance to certain investors 860,000 shares of its Series B Convertible Preferred Stock, convertible into 860,000 shares of its Common Stock. As of September 30, 2020, the Company has estimated and reserved for issuance approximately 20.0 million shares of Common Stock for a future conversion of its issued and outstanding Convertible Notes Payable.

 

Fair Value Measurement, Policy [Policy Text Block]

Fair Value. The Company has adopted ASC Topic 820,Fair Value Measurements and Disclosures” for both financial and nonfinancial assets and liabilities. The Company has not elected the fair value option for any of its assets or liabilities.

 

Use of Estimates, Policy [Policy Text Block]

Use of Estimates. The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, and include certain estimates and assumptions, which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Accordingly, actual results may differ from those estimates.

 

Reclassifications [Policy Text Block]

Reclassifications. Prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have no effect on net loss or earnings per share.

 

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements.

 

Management has considered all recent accounting pronouncements in the current period and identified no pronouncements that would have an impact on our financial statements.  

XML 27 R18.htm IDEA: XBRL DOCUMENT v3.21.2
Note 6 - Convertible Notes Payable (Tables)
9 Months Ended
Sep. 30, 2021
Notes Tables  
Debt Disclosure [Table Text Block[
  

September 30,
2021

  

December 31,

2020

 

Notes Payable

 $1,387,694  $1,387,694 

Accrued Interest

 $1,017,012  $866,226 

Notes Payable, related party

 $102,000  $102,000 

Accrued Interest, related Party

 $75,649  $64,251 

Total Notes Payable

 $2,582,355  $2,420,171 
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.21.2
Note 3 - Summary of Significant Accounting Policies (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Jun. 30, 2021
Share-based Payment Arrangement, Noncash Expense, Total $ 0 $ 0 $ 0 $ 0  
Share-based Payment Arrangement, Expense $ 0 $ 0 $ 0 $ 0  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)         0
Sale of Stock, Price Per Share (in dollars per share) $ 0.01   $ 0.01    
Preferred Stock, Capital Shares Reserved for Future Issuance (in shares) 860,000 860,000 860,000 860,000  
Common Stock, Capital Shares Reserved for Future Issuance (in shares)   20,000,000.0   20,000,000.0  
Series B Preferred Stock [Member]          
Preferred Stock, Capital Shares Reserved for Future Issuance (in shares) 860,000 860,000 860,000 860,000  
Warrents [Member]          
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)     15,000,000    
Preferred Shares [Member]          
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)     6,196,893    
Equity Option [Member]          
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)     15,000,000    
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.21.2
Note 4 - Investments (Details Textual) - Preprogen LLC [Member]
1 Months Ended
Dec. 31, 2018
USD ($)
Minority Interest Percentage 15.00%
Escrow Deposit $ 200,583
Percentage of Royelty from Sale 5.00%
Maximum Aggregate Consideration from Royalty $ 200,000
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.21.2
Note 6 - Convertible Notes Payable (Details Textual) - USD ($)
9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Notes Payable, Related Parties, Current $ 177,649 $ 166,251
Directors [Member]    
Notes Payable, Related Parties, Current $ 177,649 $ 166,251
Minimum [Member]    
Interest Rate 12.00%  
Maximum [Member]    
Interest Rate 18.00%  
Date Ranges [Member]    
Debt Instrument, Periodic Payment, Principal $ 1,489,694  
Bridge Notes [Member] | Minimum [Member]    
Debt Instrument, Interest Rate, Stated Percentage 12.00%  
Bridge Notes [Member] | Maximum [Member]    
Debt Instrument, Interest Rate, Stated Percentage 18.00%  
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.21.2
Note 6 - Convertible Notes Payable (Details) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Notes Payable $ 1,387,694 $ 1,387,694
Accrued Interest 1,017,012 866,226
Notes Payable, related party 102,000 102,000
Accrued Interest, related Party 75,649 64,251
Total Notes Payable $ 2,582,355 $ 2,420,171
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.21.2
Note 7 - Related Party Transactions (Details Textual) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Nov. 30, 2018
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Dec. 31, 2020
Related Party Costs   $ 0 $ 0 $ 0 $ 10,500    
Notes Payable, Related Parties, Current   177,649   177,649   $ 177,649 $ 166,251
Directors [Member]              
Related Party Transaction, Expenses from Transactions with Related Party         14,085    
Notes Payable, Related Parties, Current   177,649   177,649   177,649 166,251
Chief Executive Officers [Member]              
Related Party Costs         3,500    
Related Party Transaction, Expenses from Transactions with Related Party         $ 7,000    
Directors [Member]              
Related Party Transaction, Expenses from Transactions with Related Party           0  
Notes Payable, Related Parties, Current   $ 177,649   $ 177,649   $ 177,649 $ 166,251
Dr. Hirschman, CEO [Member]              
Payment for Management Fee $ 3,500            
Mr. Abrams [Member]              
Payment for Management Fee $ 3,500            
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.21.2
Note 8 - Preferred Stock (Details Textual)
9 Months Ended
Sep. 30, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
$ / shares
shares
Sep. 30, 2020
shares
Apr. 30, 2018
USD ($)
shares
Dec. 31, 2017
USD ($)
Preferred Stock, Shares Authorized (in shares) 25,000,000 25,000,000      
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares $ 0.01 $ 0.01      
Preferred Stock, Capital Shares Reserved for Future Issuance (in shares) 860,000   860,000    
Bridge Notes Two Zero One Seven [Member]          
Debt Instrument, Periodic Payment, Principal | $ $ 86,000        
Preferred Stock, Capital Shares Reserved for Future Issuance (in shares) 860,000        
Debt Instrument, Unamortized Discount, Total | $         $ 7,818
Series B Preferred Stock [Member]          
Preferred Stock, Shares Authorized (in shares) 20,500,000 20,500,000      
Capital Units, Value | $ $ 204,000        
Debt Instrument, Convertible, Conversion Ratio 1        
Preferred Stock, Capital Shares Reserved for Future Issuance (in shares) 860,000   860,000    
Preferred Stock Purchased Shares (in shares)       10,480,049  
Aggregate Purchase Price | $       $ 20,000  
Preferred Stock, Shares Issued, Total (in shares) 6,196,893 6,196,893      
Preferred Stock, Liquidation Preference, Value | $ $ 61,969        
Preferred Stock, Shares Outstanding, Ending Balance (in shares) 6,196,893 6,196,893      
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.21.2
Note 9 - Common Stock, Options and Warrants (Details Textual) - $ / shares
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Common Stock, Shares Authorized (in shares) 150,000,000   150,000,000
Common Stock, Shares, Issued, Total (in shares) 78,696,461   78,696,461
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) 0 0  
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in dollars per share) $ 0.05    
Common Stock, Shares, Outstanding, Ending Balance (in shares) 78,696,461   78,696,461
Warrants [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) 15,000,000.0    
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