GOING CONCERN AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2021

Going Concern And Basis Of Presentation [Abstract]

Going Concern And Basis Of Presentation

NOTE 2 – GOING CONCERN AND BASIS OF PRESENTATION

The Company has a history of recurring losses from operations and the use of cash in operating activities. For the twelve months ended December 31, 2021, the Company’s net loss was $3,283,239 and cash used in operating activities was $1,112,254. As of December 31, 2021, the Company had current assets of $270,561 and current liabilities of $3,543,388 of which $372,028 was accrued PIK Note interest to be paid in additional PIK Notes. The Company’s current liabilities also include. (i) $717,327 of accrued salaries, severance and related taxes deferred by current and past members of management until the Company’s liquidity improves, (ii) $1,438,311 of accrued directors fee and other director compensation as determined by the Company’s Board, (iii) $119,269 of payables to a compounder for which it has agreed to satisfy in halloysite product and (iv) $47,783 of disputed or erroneously accrued expenses.

Management believes that in order for the Company to meet its obligations arising from normal business operations through April 15, 2023 that the Company may be required (i) to raise additional capital either in the form of a private placement of common stock or debt and/or (ii)generate additional sales of its products that will generate sufficient operating profit and cash flows to fund operations. Without additional capital or additional sales of its products, the Company’s ability to continue to operate may be limited.

Based on the Company’s current cash usage expectations, management believes it may not have sufficient liquidity to fund its operations through April 15, 2023. Further, management cannot provide any assurance that it is probable that the Company will be successful in accomplishing any of its plans to raise debt or equity financing or generate additional product sales. Collectively these factors raise substantial doubt regarding the Company’s ability to continue as going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded assets amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern.