0001493152-22-013812.txt : 20220516 0001493152-22-013812.hdr.sgml : 20220516 20220516161707 ACCESSION NUMBER: 0001493152-22-013812 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 54 CONFORMED PERIOD OF REPORT: 20220331 FILED AS OF DATE: 20220516 DATE AS OF CHANGE: 20220516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QHSLab, Inc. CENTRAL INDEX KEY: 0000856984 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 112655906 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19041 FILM NUMBER: 22929295 BUSINESS ADDRESS: STREET 1: 901 NORTHPOINT PARKWAY STREET 2: SUITE 302 CITY: WEST PALM BEACH STATE: FL ZIP: 33407 BUSINESS PHONE: (929) 379-6503 MAIL ADDRESS: STREET 1: 901 NORTHPOINT PARKWAY STREET 2: SUITE 302 CITY: WEST PALM BEACH STATE: FL ZIP: 33407 FORMER COMPANY: FORMER CONFORMED NAME: USA EQUITIES CORP. DATE OF NAME CHANGE: 20151119 FORMER COMPANY: FORMER CONFORMED NAME: USA EQUITY CORP. DATE OF NAME CHANGE: 20151116 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN BIOGENETIC SCIENCES INC DATE OF NAME CHANGE: 19940426 10-Q 1 form10-q.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended March 31, 2022

 

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

 

For the period from ______________ to_______________

 

Commission file number 000-19041

 

QHSLab, Inc.

(f/k/a USA Equities Corp)

(Exact Name Of Registrant As Specified In Its Charter)

 

Nevada   30-1104301

(State of

Incorporation)

 

(I.R.S. Employer

Identification No.)

 

901 Northpoint Parkway, Suite 302, West Palm

Beach, FL

  33407
(Address of Principal Executive Offices)   (ZIP Code)

 

Registrant’s Telephone Number, Including Area Code: (929) 379-6503

 

Securities Registered Pursuant to Section 12(g) of The Act:

 

Title of Each Class   Trading Symbol(s)   Name of each Exchange on Which Registered
Common Stock, $0.0001 Par Value   USAQ   NA

 

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

 

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

 

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

 

Large accelerated filer ☐ Accelerated filer ☐ Non-Accelerated filer Smaller reporting company

 

Emerging Growth Company  

 

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

 

On May 13, 2022, the Registrant had 8,815,508 shares of common stock outstanding.

 

 

 

 

 

 

TABLE OF CONTENTS

 

Item   Description   Page
         
    PART I - FINANCIAL INFORMATION    
         
ITEM 1.   FINANCIAL STATEMENTS.   3
ITEM 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.   17
ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.   20
ITEM 4.   CONTROLS AND PROCEDURES.   20
         
    PART II - OTHER INFORMATION    
         
ITEM 1.   LEGAL PROCEEDINGS.   21
ITEM 1A.   RISK FACTORS.   21
ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.   21
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.   21
ITEM 4.   MINE SAFETY DISCLOSURES.   21
ITEM 5.   OTHER INFORMATION.   21
ITEM 6.   EXHIBITS.   21

 

2

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This report contains forward-looking statements. Certain of the matters discussed herein concerning, among other items, our operations, cash flows, financial position and economic performance including, in particular, future sales, product demand, competition and the effect of economic conditions, include forward-looking statements.

 

Forward-looking statements are predictive in nature and do not relate strictly to historical or current facts and generally include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” and similar expressions. Although we believe that the forward-looking statements contained in this report are based upon reasonable assumptions, these statements and other projections contained herein expressing opinions about future outcomes and non-historical information, are subject to uncertainties and, therefore, there is no assurance that the outcomes expressed in these statements will be achieved.

 

Investors are cautioned that forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the expectations expressed in forward-looking statements contained herein. Given these uncertainties, you should not place any reliance on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. You are advised, however, to consult any additional disclosures we make in our reports filed with the Securities and Exchange Commission (“SEC”).

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS (unaudited)

 

Condensed Consolidated Balance Sheets – March 31, 2022 and December 31, 2021 4
Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2022 and 2021 5
Condensed Consolidated Statements of Stockholders’ Equity – Three Months Ended March 31, 2022 and 2021 6
Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2022 and 2021 7
Notes to the Condensed Consolidated Financial Statements 8

 

3

 

 

QHSLab, Inc.

Condensed Consolidated Balance Sheets

 

     March 31, 2022     December 31, 2021 
   (Unaudited)     
Assets          
Current Assets:          
Cash and cash equivalents  $155,557   $286,855 
Accounts receivable   96,093    70,474 
Inventory   73,153    65,740 
Prepaid expenses and other current assets   71,888    22,713 
Total current assets   396,691    445,782 
Non-current assets:          
Capitalized software development costs   223,390    186,271 
Intangible assets, net   1,558,416    1,576,444 
Total assets  $2,178,497   $2,208,497 
Liabilities and Stockholders’ Equity          
Current Liabilities:          
Accounts payable  $33,045   $20,370 
Other current liabilities   46,328    58,615 
Loans payable, current portion   342,239    253,865 
Convertible notes payable, current portion   613,954    542,104 
Total current liabilities   1,035,566    874,954 
Non-current liabilities:          
Accrued interest expenses   8,986    6,521 
Loans payable, non-current portion   357,834    402,956 
Convertible notes payable, non-current portion   100,000    100,000 
Total non-current liabilities   466,820    509,477 
Total liabilities   1,502,386    1,384,431 
           
Commitment and contingencies (Note 12)          
           
Stockholders’ Equity:          
           
Preferred stock Series A, 10,000,000 shares authorized, $0.0001 par value; 1,080,092 shares issued and outstanding   108    108 
Preferred stock Series A-2, $0.0001 par value; 2,644,424 shares issued and outstanding    264    264 
Common stock, 900,000,000 shares authorized, $0.0001 par value; 8,815,508 and 8,756,093 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively   882    876 
Unearned stock compensation   (3,484)   (6,968)
Additional paid-in capital   3,387,540    3,348,681 
Accumulated deficit   (2,709,199)   (2,518,895)
Total stockholders’ equity   676,111    824,066 
Total liabilities and stockholders’ equity  $2,178,497   $2,208,497 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

4

 

 

QHSLab, Inc.

Condensed Consolidated Statements of Operations

 

   Three Months Ended   Three Months Ended 
   March 31, 2022   March 31, 2021 
   (Unaudited)   (Unaudited) 
Revenue  $355,330   $304,336 
           
Cost of revenue   166,642    170,757 
           
Gross profit   188,688    133,579 
           
Operating Expenses:          
Sales and marketing   113,294    111,688 
General and administrative   89,514    70,127 
Research and development   28,979    28,021 
Amortization   18,028    - 
Total Operating Expenses   249,815    209,836 
           
Net operating loss   (61,127)   (76,257)
           
Interest expense   127,157    10,429 
Loss on extinguishment of debt   2,020    - 
Net loss  $(190,304)  $(86,686)
           
Basic and diluted net loss per share  $(0.02)  $(0.01)
           
Weighted average shares outstanding (basic and diluted)   8,779,859    6,833,261 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

5

 

 

QHSLab, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

 

                                            
   Preferred Stock-
Series A
   Preferred Stock - Series A-2   Common Stock   Unearned Stock   Additional Paid-In   Accumulated   Total
Stockholders’ Equity
 
   Shares   Shares   Shares   Amount   Compensation   Capital   Deficit   (Deficit) 
Balance at January 1, 2022   1,080,092   $108    2,644,424   $264    8,756,093   $876   $(6,968)  $3,348,681   $(2,518,895)  $824,066 
Shares issued for services   -    -    -    -    -    -    3,484    -    -    3,484 
Conversion of notes payable   -    -    -    -    59,415    6    -    27,919    -    27,925 
Warrants issued with conversion of notes payable   -    -    -    -    -    -    -    2,020    -    2,020 
Stock-based compensation expense   -    -    -    -    -    -    -    8,920    -    8,920 
Net loss   -    -    -    -    -    -    -    -    (190,304)   (190,304)
Balance at March 31, 2022   1,080,092   $108    2,644,424   $264    8,815,508   $882   $(3,484)  $3,387,540   $(2,709,199)  $676,111
                                                   
Balance at January 1, 2021   1,080,092   $108    -   $-    6,562,735   $656   $(124,479)  $1,264,108   $(1,748,719)  $(608,326)
Shares issued for services   -    -    -    -    150,000    15    (89,419)   89,985    -    581 
Conversion of notes payable   -    -    -    -    496,718    50    -    194,161    -    194,211 
Cancellation of shares   -    -    -    -    (100,000)   (10)   -    10    -    - 
Amortization of unearned compensation   -    -    -    -    -    -    67,812    -    -    67,812 
Stock-based compensation expense   -    -    -    -    -    -    -    8,920    -    8,920 
Net loss   -    -    -    -    -    -    -    -    (86,686)   (86,686)
Balance at March 31, 2021   1,080,092   $108    -   $-    7,109,453   $711   $(146,086)  $1,557,184   $(1,835,405)  $(423,488)

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

6

 

 

QHSLab, Inc.

Condensed Consolidated Statements of Cash Flows

 

   For the Three Months Ended   For the Three Months Ended 
   March 31, 2022   March 31, 2021 
         
Operating activities          
Net loss  $(190,304)  $(86,686)
Adjustments to reconcile net loss to net cash from operating activities:          
Amortization   18,028    - 
Amortization of debt and warrant issuance costs   96,850    - 
Stock-based compensation   8,920    8,920 
Shares issued for services   3,484    68,393 
Loss on extinguishment of debt   2,020    - 
Changes in operating assets and liabilities:          
Increase in accounts receivable   (25,619)   (9,975)
(Increase)/decrease in inventory   (7,413)   38,561 
Increase in prepaid expenses and other current assets   (49,175)   (1,088)
Increase/(decrease) in accounts payable   12,675   (67,556)
Decrease in other current liabilities   (14,257)   (433)
Increase in accrued interest   7,360    16,972 
Cash flows from operating activities   (137,431)   (32,892)
           
Investing activities:          
Capitalized software   (37,119)   (26,882)
Cash flows from investing activities   (37,119)   (26,882)
           
Financing activities:          
Proceeds of loan borrowings   128,500    - 
Repayments of loan borrowings   (85,248)   - 
Cash flows from financing activities   43,252    - 
           
Change in cash   (131,298)   (59,774)
Cash and cash equivalents – beginning of year   286,855    94,342 
Cash and cash equivalents - end of period  $155,557   $34,568 
           
Supplemental disclosures of cash flow activity:          
Cash paid for interest  $18,519   $21 
Cash paid for taxes  $-   $- 
Supplemental noncash investing and financing activity:          
Debt and accrued interest converted to shares of common stock  $27,925   $194,211 

 

See accompanying notes to the unaudited condensed consolidated financial statements.

 

7

 

 

QHSLab, Inc.

Notes to the Condensed Consolidated Financial Statements

 

Note 1. The Company

 

QHSLab, Inc. (f/k/a USA Equities Corp.) (the “Company”, or the “Registrant”) was incorporated in Delaware on September 1, 1983. In 2015, the Company changed its name to USA Equities Corp. On September 23, 2021, the Company changed its state of incorporation from Delaware to Nevada as a result of a merger with and into its newly formed wholly-owned subsidiary, USA Equities Corp., a Nevada corporation (“USA Equities Nevada”), the surviving entity pursuant to an Agreement and Plan of Merger. The reincorporation was approved by the stockholders of the Company and USA Equities Nevada is deemed to be the successor to USA Equities Corp, the Delaware corporation. On April 19, 2022, the Company changed its name to QHSLab, Inc.

 

The Company is a medical device technology and software as a service (“SaaS”) company focused on enabling primary care physicians (“PCP’s”) to increase their revenues by providing them with relevant, value-based tools to evaluate and treat chronic disease as well as provide preventive care through reimbursable procedures.

 

Note 2. Going Concern

 

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since inception, has negative operational cash flows and began recognizing revenues in the fourth quarter of fiscal 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company’s business is dependent upon its ability to achieve profitability and positive cash flows and, pending such achievement, future issuances of equity or other financings to fund ongoing operations. However, access to such funding may not be available on commercially reasonable terms, if at all. These condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Note 3. Basis of Presentation

 

The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes included in our Annual Report on Form 10- K for the year ended December 31, 2021.

 

The accounting policies are described in the “Notes to the Consolidated Financial Statements” in the 2021 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three months ended March 31, 2022 and 2021 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

 

Reclassifications

 

Certain reclassifications were made to the prior condensed consolidated financial statements to conform to the current period presentation. There was no change to the previously reported net loss.

 

Risks Related to COVID-19 Pandemic

 

The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies. While the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic could negatively impact the Company’s short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and the Company does not yet know the full extent of potential impacts on its business, financing or global economy as a whole. However, these effects could have a material impact on the Company’s liquidity, capital resources and operations.

 

Accounting Policies

 

Use of Estimates: The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

 

8

 

 

Principles of Consolidation: The condensed consolidated financial statements include the accounts of QHSLab, Inc. and its wholly owned subsidiaries USAQ Corporation, Inc., and Medical Practice Income, Inc. All significant inter-company balances and transactions have been eliminated.

 

Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents.

 

Accounts Receivable: The Company extends unsecured credit to its customers on a regular basis. Management monitors the payments on outstanding balances and will establish a reserve for uncollectible balances as necessary based on experience.

 

Inventories: Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. The Company uses actual costs to determine its cost basis for inventories. Inventories consist of only finished goods.

 

Capitalized Software Development Costs: Software development costs for internal-use software are accounted for in accordance with Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. Development costs that are incurred during the application development stage begin to be capitalized when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases once the software is substantially complete and ready for its intended use. Costs incurred during the preliminary project stage of software development and post-implementation operating stages are expensed as incurred. Amortization is calculated on a straight-line basis over the remaining economic life of the software (typically three to five years) and will be included in the operating expenses on the condensed consolidated Statements of Operations once amortization begins.

 

The estimated useful lives of software are reviewed at least annually and will be tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets.

 

Capitalized software development costs for internal-use software totaled $223,390 as of March 31, 2022 and $186,271 as of December 31, 2021. The software application is still in development with costs continuing to be capitalized and no amortization expense being recognized during the periods ended March 31, 2022 and December 31, 2021. There were no impairments recognized during the periods ended March 31, 2022 and December 31, 2021.

 

Intangible Assets: Intangible assets represent the value the Company paid to acquire assets including a trademark, patent and web domain on June 23, 2021. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, Business Combination, Related Issues, Initial Measurement. These assets are accounted for in accordance with ASC 350-30, Intangibles, General Intangibles Other Than Goodwill. The cost of the assets is amortized over the remaining useful life of the assets as follows:

 

U.S. Method Patent 13.4 years
   
Web Domain Indefinite life
   
Trademark Indefinite life

 

The estimated useful lives and carrying value of the assets are reviewed at least annually or whenever events or circumstances may result in an impact to the value of the assets.

 

9

 

 

Convertible Notes Payable: The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, Derivatives and Hedging, in accordance with the provisions of ASC 470-20, Debt with Conversion and Other Options, which provides guidance on accounting for convertible securities with beneficial conversion features. ASC 470-20 addresses classification determination for specific obligations, such as short-term obligations expected to be refinanced on a long-term basis, due-on-demand loan arrangements, callable debt, sales of future revenue, increasing rate debt, debt that includes covenants, revolving credit agreements subject to lock-box arrangements and subjective acceleration clauses. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.

 

Revenue Recognition: Pursuant to ASC Topic 606, Revenue from Contracts with Customers, or ASC 606, the Company recognizes revenue upon transfer of control of goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. The Company does not allow for the return of products and therefore does not establish an allowance for returns.

 

To determine the revenue to be recognized for transactions that the Company determines are within the scope of ASC 606, the Company follows the established five-step framework as follows:

 

  (i) identify the contract(s) with a customer;
  (ii) identify the performance obligations in the contract(s);
  (iii) determine the transaction price;
  (iv) allocate the transaction price to the performance obligations in the contract(s); and
  (v) recognize revenue when (or as) the Company satisfies a performance obligation.

 

The Company sells allergy diagnostic-related products and immunotherapy treatments to physicians. Revenue is recognized once the Company satisfies its performance obligation which occurs at the point in time when title and possession of products have transitioned to the customer, typically upon delivery of the products.

 

The Company includes shipping and handling fees billed to customers in revenue.

 

There are several practical expedients and exemptions allowed under ASC 606 that impact timing of revenue recognition and disclosures. The Company elected to treat similar contracts as a portfolio of contracts, as allowed under ASC 606. The contracts that fall within the portfolio have the same terms and management has the expectation that the result will not be materially different from the consideration of each individual contract.

 

Research and Development: Research and development expense is primarily related to developing and improving methods related to the Company’s Software as a Service (SaaS) platform. Research and development expenses are expensed when incurred. For the three months ended March 31, 2022 and 2021, there were $28,979 and $28,021 of research and development expenses incurred, respectively.

 

10

 

 

Stock-based Compensation: The Company applies the fair value method of ASC 718, Share Based Payment, in accounting for its stock-based compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company’s common stock and other pertinent factors at the grant date.

 

Earnings Per Common Share: Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options and warrants to purchase common stock (only if those options and warrants are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of March 31, 2022 or 2021.

 

Income Taxes: The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

The Company has net operating losses of $2,709,199 which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

 

Recently Issued Accounting Standards

 

In August 2020, the Financial Accounts Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), or ASU 2020-06. The updated guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. Consequently, more convertible debt instruments will be reported as single liability instruments with no separate accounting for embedded conversion features. The ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. In addition, ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. The Company adopted the provisions of ASU 2020-06 using a modified retrospective approach, which resulted in no cumulative effect adjustment to stockholders’ deficit as of January 1, 2021.

 

This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have a current and/or future impact on or are unrelated to the Company’s financial condition, results of operations, cash flows or disclosures.

 

11

 

 

Note 4. Capitalized Software and Intangible Assets

 

Non-current assets consist of the following at March 31, 2022 and December 31, 2021:

 

   Estimated Useful Life
(in years)
   March 31,
2022
   December 31,
2021
 
Capitalized Software   TBD   $223,390   $186,271 
Intangible Assets:               
U.S. Method Patent   13.4   $967,500   $967,500 
Web Domain   N/A    161,250    161,250 
Trademark   N/A    483,750    483,750 
Total Intangible Assets       $1,612,500   $1,612,500 
Accumulated amortization        (54,084)   (36,056)
Intangible assets, net       $1,558,416   $1,576,444 

 

Capitalized software represents the development costs for internal-use software. The software application is still in development with costs continuing to be capitalized and no amortization expense being recognized yet. Capitalization will cease and amortization will begin once development is substantially complete. The Capitalized software costs will be amortized over the estimated life of the software. There were no impairments recognized during the periods ended March 31, 2022 and December 31, 2021.

 

The intangible assets represent the value the Company paid to acquire the trademark “AllergiEnd”, the web domain “AllergiEnd.com” along with the U.S. Method Patent registration relating to the allergy testing kit and related materials the Company distributes to physician clients. The Company acquired the intangible assets from MedScience Research Group as of June 23, 2021 for total consideration of $1,612,500 which was financed through a combination of restricted stock and a promissory note. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, Business Combination, Related Issues, Initial Measurement. The assets are being amortized over their useful lives beginning July 1, 2021. The Trademark and Web Domain are determined to have an indefinite life and will be tested annually for impairment in accordance with ASC 350-30-35, Intangibles, General Intangibles Other Than Goodwill. There was $18,028 of amortization expense during the quarter ended March 31, 2022 and no amortization expense during the quarter ended March 31, 2021.

 

Note 5. Loans Payable

 

On June 23, 2021, the Company entered into a purchase agreement to acquire certain assets from MedScience Research Group, Inc (“MedScience”) (See Note 4 for additional information). As part of that purchase agreement, the Company issued a Promissory Note with a principal sum of $750,000. The principal, along with associated interest, are being paid in 36 equal monthly installments that began in July 2021. The principal balance of the loan is divided between current and long-term liabilities on the Company’s condensed consolidated balance sheets. The combined principal due along with accrued interest as of March 31, 2022 is $586,716 and as of December 31, 2021 was $644,158.

 

On March 2, 2022, the Company entered into a fixed-fee short-term loan with its merchant bank and received $128,500 in loan proceeds. The loan payable, which is split between current and long-term liabilities on the Company’s condensed consolidated balance sheets, is due in August 2023. The loan is repaid by the merchant bank withholding an agreed-upon percentage of payments they process on behalf of the Company with a minimum of $16,305 paid every 60 days. As of March 31, 2022, the loan balance is $117,117. The prior fixed-fee short-term loan with the same merchant bank had a balance of $16,793 as of December 31, 2021 and was paid in full during the first quarter 2022.

 

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Note 6. Convertible Notes Payable

 

Convertible notes payable at March 31, 2022 and December 31, 2021, consist of the following:

 

   March 31,
2022
   December 31,
2021
 
Note 1 – Accredited investors  $-   $25,000 
Note 2 – Shareholder   100,000    100,000 
Note 3 – Mercer Note   756,000    756,000 
Total  856,000   881,000 
Debt discount and issuance costs  (142,046)  (238,896)
Total convertible notes payable   713,954    642,104 
Less: current portion   613,954    542,104 
Non-current portion  $100,000   $100,000 

 

Note 1 – Effective December 23, 2020, the Company issued a Convertible Promissory Note in the principal amount of $25,000 to a shareholder (Note 1). This Note was issued under a subscription agreement dated September 25, 2020. As of March 31, 2022 and December 31, 2021, this note had $0 and $2,555, respectively, of accrued interest. On February 23, 2022 the shareholder elected to convert the outstanding principal of $25,000 along with accrued interest into 59,415 shares of common stock at a price of $0.47 per share. Additionally, the shareholder received warrants exercisable for two years to purchase 14,854 common shares at $0.705 per share.

 

Note 2 – Effective May 7, 2021, the Company issued a Convertible Promissory Note in the principal amount of $100,000 to a shareholder (Note 2). The Note bears interest at the rate of 10% per annum and matures on September 30, 2022 (the “Maturity Date”) at which date all outstanding principal and accrued and unpaid interest are due and payable. The Company may satisfy the Note upon maturity or Default, as defined, by the issuance of common shares at a conversion price equal to the greater of a 25% discount to the 15-day average market price of the Company’s common stock or $0.50. The principal and interest accrued are convertible at any time through the maturity date of September 30, 2022 at the option of the holder using the same conversion calculation. As of March 31, 2022 and December 31, 2021, this note had $8,986 and $6,521, respectively, of accrued interest.

 

Note 3 – Effective August 10, 2021, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which it issued to the investor an Original Issue Discount Secured Convertible Promissory Note (the “Note”) in the principal amount of $806,000 and warrants to purchase 930,000 shares of the Company’s common stock for aggregate consideration of $750,000. In addition, pursuant to the Purchase Agreement the Company entered into a Registration Rights Agreement with the investor.

 

The principal amount of the Note and all interest accrued thereon is payable on August 10, 2022, and are secured by a lien on substantially all of the Company’s assets. The Note provides for interest at the rate of 5% per annum, payable at maturity, and is convertible into common stock at a price of $0.65 per share. In addition to customary anti-dilution adjustments upon the occurrence of certain corporate events, the Note provides, subject to certain limited exceptions, that if we issue any common stock or common stock equivalents, as defined in the Note, at a per share price lower than the conversion price then in effect, the conversion price will be reduced to the per share price at which such stock or common stock equivalents were sold. The conversion price of the Note had been subject to a potential decrease if the average closing price of the Company’s common stock during any ten consecutive trading days beginning September 16, 2021, and ending on November 15, 2021, was below $0.65. As the trading price of the common stock has not been below $0.65 since September 21, 2021, this provision is no longer operative.

 

On November 11, 2021, Mercer Street Global Opportunity Fund, LLC, converted $50,000 of the principal amount of the $806,000 Secured Convertible Promissory Note issued August 10, 2021, into 76,923 shares of the Company’s common stock at a price of $0.65 per share.

 

The 930,000 Warrants are initially exercisable for a period of three years at a price of $1.25 per share, subject to customary anti-dilution adjustments upon the occurrence of certain corporate events as set forth in the Warrant. The shares issuable upon conversion of the Note and exercise of the Warrants are to be registered under the Securities Act of 1933, as amended, for resale by the investor as provided in the Registration Rights Agreement. The Warrants may be exercised by means of a “cashless exercise” if at any time the shares issuable upon exercise of the Warrant are not covered by an effective registration statement.

 

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The Company accounts for the allocation of its issuance costs to its Warrants in accordance with ASC 470-20, Debt with Conversion and Other Options. Under this guidance, if debt or stock is issued with detachable warrants, the proceeds need to be allocated to the two instruments using either the fair value method, the relative fair value method, or the residual value method. The Company used the relative fair value at the time of issuance to allocate the value received between the convertible note and the warrants.

 

The Company estimated the fair value of the Warrants utilizing the Black-Scholes pricing model, which is dependent upon several assumptions such as the expected term of the Warrants, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected term and expected dividend yield rate over the expected term. The Company believes this valuation methodology is appropriate for estimating the fair value of warrants. The value allocated to the relative fair value of the Warrants was recorded as debt issuance costs and additional paid in capital.

 

The principal, net of the original issue discount and debt issuance costs, including the allocated relative fair value of the Warrants, which are being recognized over the life of the Note, along with associated interest, is recorded with current liabilities on the Company’s condensed consolidated balance sheets. As of March 31, 2022, this Note had $24,767 of accrued interest, total unamortized debt issuance costs of $121,794, including the Warrant value, and the remaining discount of $20,252. As of December 31, 2021, this note had $15,446 of accrued interest, total unamortized debt issuance costs of $204,835, including the Warrant value, and the remaining discount of $34,060.

 

Note 7. Preferred Stock

 

Series A Preferred Stock

 

The shares of Series A Preferred Stock have a stated value of $0.25 per share and are initially convertible into shares of common stock at a price of $0.05 per share (subject to adjustment upon the occurrence of certain events). The Series A Preferred Stock does not accrue dividends and ranks prior to the common stock upon a liquidation of the Company. The Series A Preferred Stock votes on all matters brought before the shareholders together with the Common stock as a single class and each share of Series A Preferred Stock has a number of votes, initially 5, equal to the number of shares of preferred stock into which it is convertible as of the record date for any vote.

 

Series A-2 Preferred Stock

 

On December 30, 2021, the Company issued 2,644,424 of the Company’s Series A-2 Convertible Preferred Shares to its principal shareholder in satisfaction of multiple outstanding convertible promissory notes with initial principal amounts totaling $286,078 together with all interest accrued thereon.

 

The rights of holders of the Company’s common stock with respect to the payment of dividends and upon liquidation are junior in right of payment to holders of the Series A-2 Convertible Preferred Shares. The rights of the holders of the Company’s Series A-2 Preferred Shares are pari passu to the rights of the holders of the Company’s Series A Preferred Shares currently outstanding.

 

Holders of the Series A-2 Convertible Preferred Stock will vote on an as converted basis with the holders of the Company’s common stock and Series A Preferred Shares as to all matters to be voted on by the holders of the common stock. Each Series A-2 Preferred Share shall be entitled to a number of votes equal to five times the number of shares of common stock into which it is then convertible on the applicable record date.

 

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Note 8. Loss Per Common Share

 

The Company calculates net loss per common share in accordance with ASC 260, Earnings Per Share. Basic and diluted net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. The Company’s potentially dilutive shares, which include shares issuable upon exercise or conversion of outstanding common stock options, common stock warrants, and convertible debt have not been included in the computation of diluted net loss per share for the quarters ended March 31, 2022 and 2021 as the result would be anti-dilutive.

 

       
   Three Months Ended March 31, 
   2022   2021 
Stock options   1,100,000    650,000 
Stock warrants   1,026,647    - 
Total shares excluded from calculation   2,126,647    650,000 

 

Note 9. Stock-based Compensation

 

During the three-month periods ended March 31, 2022 and 2021, there was $8,920 in stock-based compensation associated with stock options included in Research and development expense. Additionally, during the same periods there was expense associated with shares issued for services. The following table shows how the expenses associated with shares issued for services were classified in the condensed consolidated statements of operations during the respective periods.

       
   Three Months Ended March 31, 
   2022   2021 
Research and development  $-   $21,625 
Sales and marketing   -    29,187 
General and administrative   3,484    17,581 
Total expense – shares issued for services  $3,484   $68,393 

 

 

During the three months ended March 31, 2021 there were 450,000 options granted to certain scientific and business advisors (“Advisors”) with a weighted-average exercise price of $0.65. The options vest in equal annual installments over three years beginning in April 2021 and expire five years after grant date. There were no options exercised, forfeited or cancelled during the period. During the three months ended March 31, 2022 there were no options granted.

 

As of March 31, 2022, there was $27,164 of unrecognized compensation related to 1,100,000 outstanding options which is expected to be recognized over a weighted-average period of 11 months. The options are being expensed over the vesting period for each Advisor. The weighted-average grant date fair value for options granted during the three months ended March 31, 2021 was $0.12.

 

The fair value of all options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used:

   Three Months Ended
March 31, 2022
   Three Months Ended
March 31, 2021
 
Risk-free interest rate   N/A    0.21%
Expected life of the options   N/A    3.5 years 
Expected volatility of the underlying stock   N/A    76.3%
Expected dividend rate   N/A    0%

 

The risk-free interest rates are derived from the U.S. Treasury yield curve in effect on the date of grant for instruments with a remaining term similar to the expected term of the options. The expected life of the options is based on the option term. Due to the Company’s limited historical data, the expected volatility is calculated based upon the historical volatility of comparable companies whose share prices are publicly available for a sufficient period of time. The dividend rate is based on the Company never paying or having the intent to pay any cash dividends.

 

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Options outstanding at March 31, 2022 consist of:

 

Date Issued  Number
Outstanding
   Number
Exercisable
   Exercise Price   Expiration Date
March 12, 2020   500,000    333,333   $0.40   March 12, 2025
June 27, 2020   150,000    100,000   $0.40   June 27, 2025
January 1, 2021   450,000    150,000   $0.65   December 31, 2025
Total   1,100,000    583,333         

 

Warrants outstanding at March 31, 2022 consist of:

 

Date Issued  Number
Outstanding
   Number
Exercisable
   Exercise Price   Expiration Date
March 16, 2021   15,900    15,900   $0.75   March 15, 2023
May 7, 2021   53,704    53,704   $0.74   May 6, 2023
June 17, 2021   12,189    12,189   $0.83   June 16, 2023
August 10, 2021   930,000    930,000   $1.25   August 9, 2024
February 23, 2022   14,854    14,854   $0.705   February 22, 2024
Total   1,026,647    1,026,647         

 

Note 10. Related Party Transactions

 

Convertible notes payable, related party: See Note 6.

 

Note 11. Income Taxes

 

For the three month period ended March 31, 2022 and the year ended December 31, 2021, the Company did not record a tax provision as the Company did not earn any taxable income in either period and maintains a full valuation allowance against its net deferred tax assets.

 

Note 12. Commitments and Contingencies

 

On February 9, 2021, the Company entered into a Receivables Purchase and Security Agreement (“Factoring Agreement”) with a Factoring Company. The Factoring Agreement has an initial term of one year and, in accordance with its terms, has been renewed for an additional year.

 

Under the terms of the agreement, designated receivables are sold for periodic advances of up to $150,000. The Factoring Company retains a reserve of 10% of purchased receivables with the balance available to the Company. Factoring fees begin at 1.8% for the first 30 days a purchased invoice is outstanding and increase the longer an invoice remains outstanding. After 90 days, the Factoring Company has the right to assign the invoice back to the Company. The Factoring Agreement includes minimum average monthly volumes.

 

As of March 31, 2022, the balance of outstanding invoices that the Factoring Company may assign back to the Company if not collected within 90 days is included in the Company’s Accounts Receivable balance with the amounts received, net of reserves held, included with other current liabilities on the condensed consolidated balance sheets. The net amount included in other current liabilities is $10,334 and $25,420 as of March 31, 2022 and December 31, 2021, respectively.

 

There are no pending or threatened legal proceedings as of March 31, 2022. The Company has no non-cancellable operating leases.

 

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

 

Overview

 

We are a medical device technology and software as a service (SaaS) company focused on enabling primary care physicians (PCP’s) to increase their revenues by providing them with relevant, value-based tools to evaluate and treat chronic disease as well as provide preventive care through reimbursable procedures. In some cases, the products we provide our physician clients will enable them to diagnose and treat patients with chronic diseases which they historically have referred to specialists, allowing them to increase their practice revenue. As part of our mission, we are providing PCP’s with the software, training and devices necessary to allow them to treat their patients using value-based healthcare, informatics and algorithmic personalized medicine, including digital therapeutics. Our virtual and point of care solutions also support remote patient monitoring, to address chronic care and preventive medicine and are reimbursable to the medical practice.

 

In November 2020, we began shipping AllergiEnd® diagnostic related products and immunotherapy treatments to PCPs in response to their requests based upon courses of treatment recommended for their patients building on the capabilities of QHSLab, our primary SaaS tool. The Company’s revenue generated from sales of AllergiEnd® products was $355,330 in the first quarter of 2022 compared to $304,336 for the same period 2021. Our PCPs generated approximately $5,000,000 in revenues utilizing our products during 2021, of which $3.8 million was the result of providing allergy diagnostic tests to patients and approximately $1.2 million was the result of providing allergen immunotherapy treatments.

 

In June 2021, we acquired the method patent, trademark and website associated with AllergiEnd®’s diagnostic and allergen immunotherapy product portfolio from MedScience Research Group, Inc. The acquisition of the AllergiEnd® assets provides us the opportunity to more fully integrate and leverage the product portfolio across our marketing platform, customer relationships and cost structure.

 

Based on the success of PCPs using our QHSLab allergy diagnostics combined with the products acquired from MedScience, we intend to increase our revenues by charging physicians a monthly subscription fee for the use of QHSLab and soliciting additional PCPs to increase their revenues by using our proven revenue generating QHSLab and AllergiEnd® line of products. We also plan to introduce additional point of care diagnostics and treatments, and digital medicine programs that PCPs can use and prescribe in their practices. In all cases, PCPs will be paid under existing government and private insurance programs, based upon analyses conducted utilizing QHSLab and treatments provided as a result of such analyses.

 

In addition to the direct sales and marketing efforts of our personnel, we engaged the University of Miami to launch and promote various continuing medical education activities to our target physician client audiences during 2021, and intend to replicate these programs during 2022. The Company has also engaged with Management Service Organizations (MSO), Independent Physician Associations (IPA’s) and Digital Marketing collaborations for joint marketing efforts and distribution. There are no assurances that these relationships will accelerate growth.

 

Recent Market Conditions

 

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (“COVID-19”). The pandemic has significantly impacted economic conditions in the United States and throughout the world. The ultimate impact of the COVID-19 pandemic is highly uncertain and we do not yet know the full extent of potential impacts on our business, financing or the global economy as a whole. However, these effects could have a material impact on our liquidity, capital resources and operations.

 

COVID-19 has accelerated both the healthcare provider and patient acceptance of virtual care technologies. Many patients are now open to telemedicine, which is excellent, but it’s not the complete solution, as it still requires a physician’s direct involvement. Regulators and insurance companies recognize what health care technologists have been saying for nearly 15 years, which is that most chronic conditions are better managed with more frequent and short encounters than infrequent visits. Health insurers are beginning to recognize that AI enabled digital medicine technologies such as those provided through QHSLab can provide the necessary encounters to foster patient compliance in between visits to a physician.

 

Our ability to operate profitably is determined by our ability to generate revenues from the licensing of our QHSLab and the sale of diagnostic related products and treatment protocols and the provision of services through our QHSLab. Currently, we are generating revenues from the sale of AllergiEnd® diagnostic related products and immunotherapy treatments. Our ability to generate a profit from these sales is determined by our ability to increase the number of physicians using these products. We will continue to upgrade QHSLab in an effort to increase the number of products sold based upon the services it can provide and before which we are able to charge a fee for its use.

 

While our revenues are largely determined by the volume of product delivered and the prices at which such products are sold, our costs are determined by a number of factors. The principal factors impacting our costs are the cost of improvements to QHSLab, the costs of products sold to PCPs, marketing expenses to recruit new PCPs and introduce new products and financing costs. As our business grows, these costs should be spread over a wider base of PCPs leading to a reduction in costs per sale and, helping to increase our gross margin.

 

17

 

 

 

Results of Operations during the three months ended March 31, 2022 as compared to the three months ended March 31, 2021

 

Revenues

 

During the fourth quarter of 2020 we began to sell AllergiEnd® Allergy Diagnostics and Allergen Immunotherapy treatments to physicians. These sales have continued to grow and for the three months ended March 31, 2022, we generated revenues of $355,330 compared to $304,336 in the comparable period of 2021. The revenue increase for the three months ended March 31, 2022 was primarily driven by sales of Allergy Diagnostic Kits of $203,594, an increase of $16,187 compared to the three months ended March 31, 2021. Immunotherapy Treatment services increased $34,153 to $142,006 during the same periods. The Company continues to expand its roll-out of its product lines increasing its customer base.

 

Our revenues consisted of the following:

 

   For the Three Months Ended 
   March 31, 
   2022   2021 
Allergy Diagnostic Kit Sales  $203,594   $187,407 
Immunotherapy Treatment Sales   142,006    107,853 
Shipping and handling   9,730    9,076 
Total revenue  $355,330   $304,336 

 

Cost of Revenues and Gross Profit

 

Cost of revenues consists of the cost of the AllergiEnd® test kits and allergen immunotherapy pharmacy prepared treatment sets, shipping costs to our customers as well as labor expenses directly related to product sales.

 

For the three months ended March 31, 2022 and 2021, cost of revenues was $166,642 and $170,757, respectively.

 

The Company generated a gross profit of $188,688 during the three months ended March 31, 2022 compared to $133,579 for the three months ended March 31, 2021. Gross margin increased from 43.9% gross margin during the three months ended March 31, 2021 to 53.1% during the three months ended March 31, 2022. The increase in gross margin was primarily attributable to the larger base of sales as well as changes in the product mix.

 

We are introducing new products at an early stage in our development cycle and the margins earned may vary significantly between periods, customers and products due to the learning process, customer negotiating strengths, and product mix.

 

Sales and Marketing

 

Selling and marketing expenses consist primarily of costs associated with selling and marketing our products to PCP’s, principally ongoing sales efforts to recruit new PCP’s and maintain our relationships with PCP’s already using our software and products. These expenses include employee compensation and costs of consultants. For the three months ended March 31, 2022, selling and marketing expenses totaled $113,294 compared to $111,688 for the three months ended March 31, 2021.

 

We expect our selling and marketing expenses to increase as we seek to build our customer base and launch additional products. Nevertheless, if we are successful in onboarding a sufficient number of PCP’s and maintaining our relationships with these PCP’s once they begin to distribute our products, selling and marketing expenses could decrease as a percentage of revenues, though we may increase our marketing efforts as funds become available.

 

General and Administrative

 

General and administrative expenses consist primarily of costs associated with operating a business including accounting, legal and management consulting fees.

 

For the three months ended March 31, 2022, general and administrative expenses totaled $89,514, an increase of $19,387, compared to $70,127 for the three months ended March 31, 2021. The increase is primarily due to increased fees for investor relations and accounting-related services. Additionally, the Company incurred higher expenses associated with processing payments on sales.

 

Research and Development

 

Research and development (“R&D”) includes expenses incurred in connection with the research and development of our medical device technology solution, including software development. R&D costs are expensed as they are incurred.

 

For the three months ended March 31, 2022, R&D expenses totaled $28,979 which is a slight increase of $958 compared to $28,021 for the three months ended March 31, 2021. The increase is primarily due to costs associated with R&D contractors.

 

We expect that our R&D expenses will increase as we invest in and expand our operations and further develop new products and services as part of the Company’s growth strategy.

 

Other Expense

 

For the three months ended March 31, 2022, interest expense increased by $116,728 to $127,157 from $10,429 for the three months ended March 31, 2021. The increase was due to higher debt balances, primarily related to the purchase of certain assets related to our AllergiEnd® products, at March 31, 2022 compared to March 31, 2021. Interest expense during the first quarter of 2022 included interest on the outstanding debt as well as the amortization of debt issuance costs including legal fees and warrants issued in connection with the note issued to purchase certain assets related to our AllergiEnd® products. The amortization of those costs totaled $83,041, or 65% of the interest expense during the quarter. Interest expense during the first quarter of 2021 was all related to interest on outstanding debt balances, primarily outstanding convertible notes payable.

 

18

 

 

Liquidity and Capital Resources

 

Liquidity is a measure of a company’s ability to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. On March 31, 2022, we had current assets totaling $396,691, including $155,557 of cash, $96,093 of accounts receivable, $73,153 of inventory, and $71,888 related to prepaid expenses and other current assets. At such date we had total current liabilities of $1,035,566 consisting of $33,045 in accounts payable, $46,328 in other current liabilities and $956,193 representing the current portions of outstanding loans and convertible notes. Our long-term liabilities balance of $466,820 consisted of convertible notes totaling $100,000 and $357,834 associated with the long-term portion of loans payable, and accrued interest expenses of $8,986.

 

On December 31, 2021, we had current assets totaling $445,782, including $286,855 of cash, $70,474 of accounts receivable, $65,740 of inventory, and $22,713 related to prepaid expenses and other current assets. At such date we had total current liabilities of $874,954 consisting of $20,370 in accounts payable, $58,615 in other current liabilities and $795,969 representing the current portions of outstanding loans and convertible notes payable. Our long-term liabilities balance of $509,477 consisted of convertible notes totaling $100,000 and $402,956 associated with the long-term portion of loans payable, and accrued interest expenses of $6,521.

 

During the third quarter of 2021, we issued a promissory note of $750,000 in connection with our acquisition of certain assets related to our AllergiEnd® products and an Original Issue Discount Secured Convertible Promissory Note in the principal amount of $806,000 (the “OID Note”) along with warrants to purchase 930,000 shares of our common stock (the “Warrants”) for aggregate consideration of $750,000. The acquisition of the assets related to our AllergiEnd® products should enable us to increase our margins on the sale of these products enabling us to satisfy the $750,000 Note. The net proceeds of the OID Note primarily have been used to increase our sales and marketing efforts.

 

The changes in accounts receivable, inventory and accounts payable primarily relate to sales of AllergiEnd® Products.

 

We used cash of $137,431 and $32,892 in operations during the quarters ended March 31, 2022 and 2021, respectively. We began to generate revenues in the fourth quarter of 2020. Nevertheless, we continued to generate negative cash flows which were financed primarily through our entry into a factoring agreement for our receivables, a loan from our credit card processor and other borrowings as we had done previously. As a result, we owed increased amounts to third parties discussed below.

 

Our convertible notes payable were reduced during the quarter ended March 31, 2022 as one note totaling $27,925 inclusive of accrued interest, was converted into 59,415 shares of our common stock and 14,854 warrants.

 

Although we are now generating revenues from the sale of our AllergiEnd® products we are likely to continue to require funds to support our operations and expand our marketing efforts for the immediate future. If our business continues to grow, we will seek to satisfy our cash needs by issuances of our equity securities or debt. In the past, we have had to rely on our principal shareholder to support our operations. More recently, we have borrowed money from third parties. If we are unable to obtain the funds we need from third parties, there is no assurance that any of our related parties will continue to provide such capital as may be necessary to continue our business or, if such funds are provided, that the agreed upon terms of any advance will be favorable to us.

 

The principal amount of the OID Note and all interest accrued thereon is payable on August 10, 2022, and is secured by a lien on substantially all of our assets. The OID Note provides for interest at the rate of 5% per annum, payable at maturity, and is convertible into shares of our common stock at a price of $0.65 per share. In addition to customary anti-dilution adjustments the OID Note provides, subject to certain limited exceptions, that if we issue common stock or common stock equivalents at a per share price lower than the conversion price then in effect, the conversion price will be reduced to the per share price at which such shares or common share equivalents are sold. The holder converted $50,000 of the principal amount into 76,923 shares of our common stock at a price of $0.65 per share. We have begun preliminary discussion with the holder of the OID Note regarding the need to extend the due date of the OID Note. There is no assurance we will come to an accommodation with the holder of the OID Note or refinance the OID Note by issuing debt or equity to a third party on terms that will be favorable to us. If we are unable to come to an agreement with the holder or refinance the OID Note with a third party, and the holder were to seek to exercise its rights under the Note, it could have a material adverse impact on the price of our common stock.

 

The Warrants are exercisable for a period of three years at a price of $1.25 per share, subject to customary anti-dilution adjustments. The shares issuable upon conversion of the OID Note and exercise of the Warrants have been registered under the Securities Act for resale by the Buyer.

 

19

 

 

Plan of Operation and Funding

 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We had an accumulated deficit of $2,709,199 at March 31, 2022, generated net losses of $190,304 and $770,176 for the three months ended March 31, 2022 and the year ended December 31, 2021, respectively, and used cash of $137,431 and $354,738 in operations in these periods. Although we began to generate revenue during the fourth quarter of 2020, we anticipate that we will continue to generate negative cash flow for the immediate future. These factors, among others, raise substantial doubt about our ability to continue as a going concern for a reasonable period of time. Our continuation as a going concern is dependent upon our ability to obtain necessary equity or debt financing and ultimately from generating revenues and positive cash flow to continue operations. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

We expect that working capital requirements will continue to be funded through a combination of our existing funds, further issuances of securities and borrowings, and that we will remain highly leveraged as we seek to expand our business. Our working capital requirements are expected to increase in line with the growth of our business, as we incur marketing expenses and the cost of building an inventory. Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have entered into a Receivables Purchase and Security Agreement providing us with up to $150,000 against certain accounts receivable but have no other lines of credit or other bank financing arrangements. Generally, we have financed our operations through the proceeds from private placements of equity and debt instruments and advances from our principal shareholder. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business and (ii) marketing expenses. We intend to finance these expenses by raising additional capital or, when available, borrowing additional funds. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

 

Our ability to obtain funds through the issuance of debt or equity is dependent upon the state of the financial markets at such time as we may seek to raise funds. The state of the capital market markets may be adversely impacted by various risks and uncertainties, including, but not limited to future and current impacts of global events such as COVID-19 and the war in the Ukraine, increases in inflation and other risks detailed in our 2021 Annual Report on Form 10K.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not required.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of disclosure controls and procedures.

 

As of March 31, 2022, the Company’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act). Based upon the evaluation of these controls and procedures as provided under the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013), our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were ineffective as of the end of the period covered by this report. Management has identified corrective actions for the weakness and will periodically reevaluate the need to add personnel and implement improved review procedures as they can be supported by the growth in our business.

 

Changes in internal controls.

 

During the quarterly period covered by this report, no changes occurred in our internal control over financial reporting that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

20

 

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

None.

 

ITEM 1A. RISK FACTORS.

 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1. Description of Business, subheading Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, which could materially affect our business, financial condition or future results.

 

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

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

Note Applicable.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

ITEM 6. EXHIBITS.

 

(a) The following documents are filed as exhibits to this report on Form 10-Q or incorporated by reference herein. Any document incorporated by reference is identified by a parenthetical reference to the SEC filing that included such document.

 

Exhibit No.   Description
   
3.1   Articles of Incorporation (incorporated herein by reference to Exhibit B to the Information Statement on Form 14-C filed June 21, 2021)
     
3.2   By-Laws ((incorporated herein by reference to Exhibit C to the Information Statement on Form 14-C filed June 21, 2021).
     
4.1   Certificate of Designation authorizing issuance of Series A Preferred Stock (incorporated herein by reference to Exhibit D to the Information Statement on Form 14-C filed June 21, 2021)
     
4.2   Certificate of Designation authorizing the issuance of the Series A-2 Preferred Stock (incorporated herein by reference to Exhibit 3.1 to the Report on Form 8-K filed December 30, 2021)
     
31   Certification of CEO and CFO pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32   Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

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21

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

 

QHSLab, Inc.  
     
By: /s/ Troy Grogan  
  Troy Grogan  
  Chief Executive Officer and Chief Financial Officer  
     
Date: May 16, 2022  

 

22

 

EX-31 2 ex31.htm

 

Exhibit 31

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a) UNDER THE EXCHANGE ACT

 

I, Troy Grogan, certify that:

 

1. I have reviewed this quarterly report of QHSLab, Inc.;

 

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 issuer as of, and for, the periods presented in this report;

 

4. The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as 4efined in Exchange Act Rules 13a-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 issuer and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us 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 our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the issuer’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 issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and

 

5. The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):

 

(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 issuer’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 issuer’s internal control over financial reporting.

 

Date: May 16, 2022  
   
/s/ Troy Grogan  
CEO and CFO  

 

 

 

EX-32 3 ex32.htm

 

Exhibit 32

 

(18 U.S.C. SECTION 1350)

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the quarterly report of QHSLab, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2022 (the “Report”), as filed with the Securities and Exchange Commission (the “Report”), Troy Grogan, Chief Executive Officer and Chief Financial Officer of the Company, does hereby certify, 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, as amended; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Troy Grogan  
Troy Grogan  
CEO and CFO  
   
Dated: May 16, 2022  

 

A signed original of this written statement required by Section 906 has been provided to QHSLab, Inc. and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

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on extinguishment of debt Net loss Basic and diluted net loss per share Weighted average shares outstanding (basic and diluted) Beginning balance, value Beginning balance, shares Shares issued for services Conversion of notes payable Conversion of notes payable, shares Warrants issued with conversion of notes payable Stock-based compensation expense Net loss Shares issued for services, shares Cancellation of shares Cancellation of shares, shares Amortization of unearned compensation Ending balance, value Ending balance, shares Statement of Cash Flows [Abstract] Operating activities Adjustments to reconcile net loss to net cash from operating activities: Amortization of debt and warrant issuance costs Stock-based compensation Shares issued for services Changes in operating assets and liabilities: Increase in accounts receivable (Increase)/decrease in inventory Increase in prepaid expenses and other current assets Increase/(decrease) in accounts payable Decrease in other current liabilities Increase in accrued interest Cash flows from operating activities Investing activities: Capitalized software Cash flows from investing activities Financing activities: Proceeds of loan borrowings Repayments of loan borrowings Cash flows from financing activities Change in cash Cash and cash equivalents – beginning of year Cash and cash equivalents - end of period Supplemental disclosures of cash flow activity: Cash paid for interest Cash paid for taxes Supplemental noncash investing and financing activity: Debt and accrued interest converted to shares of common stock Organization, Consolidation and Presentation of Financial Statements [Abstract] The Company Going Concern Accounting Policies [Abstract] Basis of Presentation Research and Development [Abstract] Capitalized Software and Intangible Assets Loans Payable Loans Payable Debt Disclosure [Abstract] Convertible Notes Payable Equity [Abstract] Preferred Stock Earnings Per Share [Abstract] Loss Per Common Share Share-Based Payment Arrangement [Abstract] Stock-based Compensation Related Party Transactions [Abstract] Related Party Transactions Income Tax Disclosure [Abstract] Income Taxes Commitments and Contingencies Disclosure [Abstract] Commitments and Contingencies Use of Estimates Principles of Consolidation Cash and Cash Equivalents Accounts Receivable Inventories Capitalized Software Development Costs Revenue Recognition Research and Development Stock-based Compensation Earnings Per Common Share Income Taxes Recently Issued Accounting Standards Schedule of Indefinite-Lived Intangible Assets Schedule of Intangible Assets Schedule of Convertible Notes Payable Schedule of Anti-dilutive Securities Excluded From Calculation of Earning Per Share Schedule of Stock-based Compensation Expenses Schedule of Fair Value of Option Grant of Weighted-average Assumptions Schedule of Options Outstanding and Exercisable Schedule of Warrants Outstanding and Exercisable Schedule of Finite-Lived Intangible Assets [Table] Finite-Lived Intangible Assets [Line Items] Finite-lived intangible assets, amortization method Impaired intangible asset Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table] Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] Capitalized software development costs for software sold to customers Capitalized computer software, amortization Capitalized computer software, impairments Research and development expense Common stock equivalent shares of weighted average shares outstanding dilutive Operating loss carryforwards Net operating losses carryforwards, expire date Total Intangible Assets Intangible Assets: Accumulated amortization Intangible assets, net Acquired intangible assets Amortization expense Collaborative Arrangement and Arrangement Other than Collaborative [Table] Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] Debt instrument face amount Debt default longterm debt amount Proceeds from Issuance of Debt Payments for loan Loan payable Schedule of Short-Term Debt [Table] Short-Term Debt [Line Items] Total Debt discount and issuance costs Total convertible notes payable Less: current portion Non-current portion Debt instrument, principal amount Debt Instrument, Maturity Date Interest Payable, Current Debt instrument convertible conversion price1 Class of Warrant or Right, Number of Securities Called by Warrants or Rights Class of Warrant or Right, Exercise Price of Warrants or Rights Debt instrument interest rate stated percentage Debt Instrument, Description Warrants to purchase common stock Proceeds from Warrant Exercises Stock Issued During Period, Value, Conversion of Convertible Securities Stock Issued During Period, Shares, Conversion of Convertible Securities Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net Debt Instrument, Unamortized Discount Schedule of Stock by Class [Table] Class of Stock [Line Items] Preferred stock stated value Debt instrument, conversion price Preferred stock voting rights description Stock Issued During Period, Value, New Issues Debt Instrument, Face Amount Total shares excluded from calculation Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table] Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] Total expense – shares issued for services Risk-free interest rate Expected life of the options Expected volatility of the underlying stock Expected dividend rate Schedule of Share-Based Compensation Arrangements by Share-Based Payment Award [Table] Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] Date Issued Number Outstanding Number Exercisable Exercise Price Expiration Date Date Issued Number Outstanding Number Exercisable Exercise Price Schedule of Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits, by Title of Individual and by Type of Deferred Compensation [Table] Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] Share-Based Payment Arrangement, Noncash Expense Number of options granted Weighted-average exercise price Options vesting term Options expiration period Unrecognized compensation related to unvested options Unrecognized compensation related to unvested options, shares Recognized weighted-average period Weighted-average fair value for options granted Agreement term Advances on sale on receivables Reserve of purchased receivables, percentage Factoring fees, percentage Accrued interest expenses non current. Series A-2 Preferred Stock [Member] Unearned Stock Compensation [Member] Loans Payable [Text Block] Web Domain [Member] Net operating losses carryforwards expire date. Purchase Agreement [Member] Convertible Notes Payable One [Member] Accredited Investor [Member] Convertible Notes Payable Two [Member] Shareholder [Member] Convertible Notes Payable Three [Member] Mercer Street Global Opportunity Fund LLC [Member] Warrants issued to purchase of common stock. Convertible Promissory Note Ten [Member] Series A2 Convertible Preferred Shares [Member] Stock Options [Member] Stock Warrant [Member] Scientific Advisors [Member] Agreement term period. Factoring Agreement [Member] Advances on sale on receivables. Reserve of purchased receivables. Factoring fees. Share based compensation arrangement by share based payment award option issuance date. Option One [Member] Option Two [Member] Option Three [Member] Share based compensation arrangement by share based payment award warrants issuance date. Warrant One [Member] Warrant Two [Member] Warrant Three [Member] Warrant Four [Member] Warrant Five [Member] Share based compensation arrangement by share based payment award warrants exercisable number. Share based compensation arrangement by share based payment award warrants outstanding weighted average exercise price. Debt and accrued interest converted to shares of common stock. Amortization of unearned compensation. Assets, Current Assets [Default Label] Liabilities, Current Liabilities, Noncurrent Liabilities Deferred Compensation Equity Stockholders' Equity Attributable to Parent Liabilities and Equity Gross Profit Operating Expenses Operating Income (Loss) Gain (Loss) on Extinguishment of Debt Shares, Outstanding Issuance of Stock and Warrants for Services or Claims Increase (Decrease) in Accounts Receivable Increase (Decrease) in Inventories Increase (Decrease) in Prepaid Expense and Other Assets Net Cash Provided by (Used in) Operating Activities Payments for Software Net Cash Provided by (Used in) Investing Activities Repayments of Short-Term Debt Net Cash Provided by (Used in) Financing Activities Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations Loans Payable [Text Block] Share-Based Payment Arrangement [Policy Text Block] Income Tax, Policy [Policy Text Block] Finite-Lived Intangible Assets, Accumulated Amortization Finite-Lived Intangible Assets, Net Debt Issuance Costs, Net ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice EX-101.PRE 8 usaq-20220331_pre.xml XBRL PRESENTATION FILE XML 9 R1.htm IDEA: XBRL DOCUMENT v3.22.1
Cover - shares
3 Months Ended
Mar. 31, 2022
May 13, 2022
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Mar. 31, 2022  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --12-31  
Entity File Number 000-19041  
Entity Registrant Name QHSLab, Inc.  
Entity Central Index Key 0000856984  
Entity Tax Identification Number 30-1104301  
Entity Incorporation, State or Country Code NV  
Entity Address, Address Line One 901 Northpoint Parkway  
Entity Address, Address Line Two Suite 302  
Entity Address, Address Line Three West Palm  
Entity Address, City or Town Beach  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33407  
City Area Code (929)  
Local Phone Number 379-6503  
Title of 12(b) Security Common Stock, $0.0001 Par Value  
Trading Symbol USAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Elected Not To Use the Extended Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   8,815,508
XML 10 R2.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Consolidated Balance Sheets - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Current Assets:    
Cash and cash equivalents $ 155,557 $ 286,855
Accounts receivable 96,093 70,474
Inventory 73,153 65,740
Prepaid expenses and other current assets 71,888 22,713
Total current assets 396,691 445,782
Non-current assets:    
Capitalized software development costs 223,390 186,271
Intangible assets, net 1,558,416 1,576,444
Total assets 2,178,497 2,208,497
Current Liabilities:    
Accounts payable 33,045 20,370
Other current liabilities 46,328 58,615
Loans payable, current portion 342,239 253,865
Convertible notes payable, current portion 613,954 542,104
Total current liabilities 1,035,566 874,954
Non-current liabilities:    
Accrued interest expenses 8,986 6,521
Loans payable, non-current portion 357,834 402,956
Convertible notes payable, non-current portion 100,000 100,000
Total non-current liabilities 466,820 509,477
Total liabilities 1,502,386 1,384,431
Stockholders’ Equity:    
Common stock, 900,000,000 shares authorized, $0.0001 par value; 8,815,508 and 8,756,093 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively 882 876
Unearned stock compensation (3,484) (6,968)
Additional paid-in capital 3,387,540 3,348,681
Accumulated deficit (2,709,199) (2,518,895)
Total stockholders’ equity 676,111 824,066
Total liabilities and stockholders’ equity 2,178,497 2,208,497
Series A Preferred Stock [Member]    
Stockholders’ Equity:    
Preferred stock 108 108
Series A-2 Preferred Stock [Member]    
Stockholders’ Equity:    
Preferred stock $ 264 $ 264
XML 11 R3.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2022
Dec. 31, 2021
Common stock, shares authorized 900,000,000 900,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares issued 8,815,508 8,756,093
Common stock, shares outstanding 8,815,508 8,756,093
Series A Preferred Stock [Member]    
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares issued 1,080,092 1,080,092
Preferred stock, shares outstanding 1,080,092 1,080,092
Series A-2 Preferred Stock [Member]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares issued 2,644,424 2,644,424
Preferred stock, shares outstanding 2,644,424 2,644,424
XML 12 R4.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Income Statement [Abstract]    
Revenue $ 355,330 $ 304,336
Cost of revenue 166,642 170,757
Gross profit 188,688 133,579
Operating Expenses:    
Sales and marketing 113,294 111,688
General and administrative 89,514 70,127
Research and development 28,979 28,021
Amortization 18,028
Total Operating Expenses 249,815 209,836
Net operating loss (61,127) (76,257)
Interest expense 127,157 10,429
Loss on extinguishment of debt 2,020
Net loss $ (190,304) $ (86,686)
Basic and diluted net loss per share $ (0.02) $ (0.01)
Weighted average shares outstanding (basic and diluted) 8,779,859 6,833,261
XML 13 R5.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
Preferred Stock [Member]
Series A Preferred Stock [Member]
Preferred Stock [Member]
Series A-2 Preferred Stock [Member]
Common Stock [Member]
Unearned Stock Compensation [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Beginning balance, value at Dec. 31, 2020 $ 108 $ 656 $ (124,479) $ 1,264,108 $ (1,748,719) $ (608,326)
Beginning balance, shares at Dec. 31, 2020 1,080,092 6,562,735        
Shares issued for services $ 15 (89,419) 89,985 581
Conversion of notes payable $ 50 194,161 194,211
Conversion of notes payable, shares     496,718        
Stock-based compensation expense 8,920 8,920
Net loss (86,686) (86,686)
Shares issued for services, shares     150,000        
Cancellation of shares $ (10) 10
Cancellation of shares, shares     (100,000)        
Amortization of unearned compensation 67,812 67,812
Ending balance, value at Mar. 31, 2021 $ 108 $ 711 (146,086) 1,557,184 (1,835,405) (423,488)
Ending balance, shares at Mar. 31, 2021 1,080,092 7,109,453        
Beginning balance, value at Dec. 31, 2021 $ 108 $ 264 $ 876 (6,968) 3,348,681 (2,518,895) 824,066
Beginning balance, shares at Dec. 31, 2021 1,080,092 2,644,424 8,756,093        
Shares issued for services 3,484 3,484
Conversion of notes payable $ 6 27,919 27,925
Conversion of notes payable, shares     59,415        
Warrants issued with conversion of notes payable 2,020 2,020
Stock-based compensation expense 8,920 8,920
Net loss (190,304) (190,304)
Ending balance, value at Mar. 31, 2022 $ 108 $ 264 $ 882 $ (3,484) $ 3,387,540 $ (2,709,199) $ 676,111
Ending balance, shares at Mar. 31, 2022 1,080,092 2,644,424 8,815,508        
XML 14 R6.htm IDEA: XBRL DOCUMENT v3.22.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Operating activities    
Net loss $ (190,304) $ (86,686)
Adjustments to reconcile net loss to net cash from operating activities:    
Amortization 18,028
Amortization of debt and warrant issuance costs 96,850
Stock-based compensation 8,920 8,920
Shares issued for services 3,484 68,393
Loss on extinguishment of debt 2,020
Changes in operating assets and liabilities:    
Increase in accounts receivable (25,619) (9,975)
(Increase)/decrease in inventory (7,413) 38,561
Increase in prepaid expenses and other current assets (49,175) (1,088)
Increase/(decrease) in accounts payable 12,675 (67,556)
Decrease in other current liabilities (14,257) (433)
Increase in accrued interest 7,360 16,972
Cash flows from operating activities (137,431) (32,892)
Investing activities:    
Capitalized software (37,119) (26,882)
Cash flows from investing activities (37,119) (26,882)
Financing activities:    
Proceeds of loan borrowings 128,500
Repayments of loan borrowings (85,248)
Cash flows from financing activities 43,252
Change in cash (131,298) (59,774)
Cash and cash equivalents – beginning of year 286,855 94,342
Cash and cash equivalents - end of period 155,557 34,568
Supplemental disclosures of cash flow activity:    
Cash paid for interest 18,519 21
Cash paid for taxes
Supplemental noncash investing and financing activity:    
Debt and accrued interest converted to shares of common stock $ 27,925 $ 194,211
XML 15 R7.htm IDEA: XBRL DOCUMENT v3.22.1
The Company
3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company

Note 1. The Company

 

QHSLab, Inc. (f/k/a USA Equities Corp.) (the “Company”, or the “Registrant”) was incorporated in Delaware on September 1, 1983. In 2015, the Company changed its name to USA Equities Corp. On September 23, 2021, the Company changed its state of incorporation from Delaware to Nevada as a result of a merger with and into its newly formed wholly-owned subsidiary, USA Equities Corp., a Nevada corporation (“USA Equities Nevada”), the surviving entity pursuant to an Agreement and Plan of Merger. The reincorporation was approved by the stockholders of the Company and USA Equities Nevada is deemed to be the successor to USA Equities Corp, the Delaware corporation. On April 19, 2022, the Company changed its name to QHSLab, Inc.

 

The Company is a medical device technology and software as a service (“SaaS”) company focused on enabling primary care physicians (“PCP’s”) to increase their revenues by providing them with relevant, value-based tools to evaluate and treat chronic disease as well as provide preventive care through reimbursable procedures.

 

XML 16 R8.htm IDEA: XBRL DOCUMENT v3.22.1
Going Concern
3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

Note 2. Going Concern

 

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since inception, has negative operational cash flows and began recognizing revenues in the fourth quarter of fiscal 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company’s business is dependent upon its ability to achieve profitability and positive cash flows and, pending such achievement, future issuances of equity or other financings to fund ongoing operations. However, access to such funding may not be available on commercially reasonable terms, if at all. These condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

XML 17 R9.htm IDEA: XBRL DOCUMENT v3.22.1
Basis of Presentation
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation

Note 3. Basis of Presentation

 

The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes included in our Annual Report on Form 10- K for the year ended December 31, 2021.

 

The accounting policies are described in the “Notes to the Consolidated Financial Statements” in the 2021 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three months ended March 31, 2022 and 2021 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.

 

Reclassifications

 

Certain reclassifications were made to the prior condensed consolidated financial statements to conform to the current period presentation. There was no change to the previously reported net loss.

 

Risks Related to COVID-19 Pandemic

 

The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies. While the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic could negatively impact the Company’s short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and the Company does not yet know the full extent of potential impacts on its business, financing or global economy as a whole. However, these effects could have a material impact on the Company’s liquidity, capital resources and operations.

 

Accounting Policies

 

Use of Estimates: The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

 

 

Principles of Consolidation: The condensed consolidated financial statements include the accounts of QHSLab, Inc. and its wholly owned subsidiaries USAQ Corporation, Inc., and Medical Practice Income, Inc. All significant inter-company balances and transactions have been eliminated.

 

Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents.

 

Accounts Receivable: The Company extends unsecured credit to its customers on a regular basis. Management monitors the payments on outstanding balances and will establish a reserve for uncollectible balances as necessary based on experience.

 

Inventories: Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. The Company uses actual costs to determine its cost basis for inventories. Inventories consist of only finished goods.

 

Capitalized Software Development Costs: Software development costs for internal-use software are accounted for in accordance with Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. Development costs that are incurred during the application development stage begin to be capitalized when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases once the software is substantially complete and ready for its intended use. Costs incurred during the preliminary project stage of software development and post-implementation operating stages are expensed as incurred. Amortization is calculated on a straight-line basis over the remaining economic life of the software (typically three to five years) and will be included in the operating expenses on the condensed consolidated Statements of Operations once amortization begins.

 

The estimated useful lives of software are reviewed at least annually and will be tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets.

 

Capitalized software development costs for internal-use software totaled $223,390 as of March 31, 2022 and $186,271 as of December 31, 2021. The software application is still in development with costs continuing to be capitalized and no amortization expense being recognized during the periods ended March 31, 2022 and December 31, 2021. There were no impairments recognized during the periods ended March 31, 2022 and December 31, 2021.

 

Intangible Assets: Intangible assets represent the value the Company paid to acquire assets including a trademark, patent and web domain on June 23, 2021. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, Business Combination, Related Issues, Initial Measurement. These assets are accounted for in accordance with ASC 350-30, Intangibles, General Intangibles Other Than Goodwill. The cost of the assets is amortized over the remaining useful life of the assets as follows:

 

U.S. Method Patent 13.4 years
   
Web Domain Indefinite life
   
Trademark Indefinite life

 

The estimated useful lives and carrying value of the assets are reviewed at least annually or whenever events or circumstances may result in an impact to the value of the assets.

 

 

Convertible Notes Payable: The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, Derivatives and Hedging, in accordance with the provisions of ASC 470-20, Debt with Conversion and Other Options, which provides guidance on accounting for convertible securities with beneficial conversion features. ASC 470-20 addresses classification determination for specific obligations, such as short-term obligations expected to be refinanced on a long-term basis, due-on-demand loan arrangements, callable debt, sales of future revenue, increasing rate debt, debt that includes covenants, revolving credit agreements subject to lock-box arrangements and subjective acceleration clauses. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.

 

Revenue Recognition: Pursuant to ASC Topic 606, Revenue from Contracts with Customers, or ASC 606, the Company recognizes revenue upon transfer of control of goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. The Company does not allow for the return of products and therefore does not establish an allowance for returns.

 

To determine the revenue to be recognized for transactions that the Company determines are within the scope of ASC 606, the Company follows the established five-step framework as follows:

 

  (i) identify the contract(s) with a customer;
  (ii) identify the performance obligations in the contract(s);
  (iii) determine the transaction price;
  (iv) allocate the transaction price to the performance obligations in the contract(s); and
  (v) recognize revenue when (or as) the Company satisfies a performance obligation.

 

The Company sells allergy diagnostic-related products and immunotherapy treatments to physicians. Revenue is recognized once the Company satisfies its performance obligation which occurs at the point in time when title and possession of products have transitioned to the customer, typically upon delivery of the products.

 

The Company includes shipping and handling fees billed to customers in revenue.

 

There are several practical expedients and exemptions allowed under ASC 606 that impact timing of revenue recognition and disclosures. The Company elected to treat similar contracts as a portfolio of contracts, as allowed under ASC 606. The contracts that fall within the portfolio have the same terms and management has the expectation that the result will not be materially different from the consideration of each individual contract.

 

Research and Development: Research and development expense is primarily related to developing and improving methods related to the Company’s Software as a Service (SaaS) platform. Research and development expenses are expensed when incurred. For the three months ended March 31, 2022 and 2021, there were $28,979 and $28,021 of research and development expenses incurred, respectively.

 

 

Stock-based Compensation: The Company applies the fair value method of ASC 718, Share Based Payment, in accounting for its stock-based compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company’s common stock and other pertinent factors at the grant date.

 

Earnings Per Common Share: Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options and warrants to purchase common stock (only if those options and warrants are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of March 31, 2022 or 2021.

 

Income Taxes: The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

The Company has net operating losses of $2,709,199 which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

 

Recently Issued Accounting Standards

 

In August 2020, the Financial Accounts Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), or ASU 2020-06. The updated guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. Consequently, more convertible debt instruments will be reported as single liability instruments with no separate accounting for embedded conversion features. The ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. In addition, ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. The Company adopted the provisions of ASU 2020-06 using a modified retrospective approach, which resulted in no cumulative effect adjustment to stockholders’ deficit as of January 1, 2021.

 

This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have a current and/or future impact on or are unrelated to the Company’s financial condition, results of operations, cash flows or disclosures.

 

 

XML 18 R10.htm IDEA: XBRL DOCUMENT v3.22.1
Capitalized Software and Intangible Assets
3 Months Ended
Mar. 31, 2022
Research and Development [Abstract]  
Capitalized Software and Intangible Assets

Note 4. Capitalized Software and Intangible Assets

 

Non-current assets consist of the following at March 31, 2022 and December 31, 2021:

 

   Estimated Useful Life
(in years)
   March 31,
2022
   December 31,
2021
 
Capitalized Software   TBD   $223,390   $186,271 
Intangible Assets:               
U.S. Method Patent   13.4   $967,500   $967,500 
Web Domain   N/A    161,250    161,250 
Trademark   N/A    483,750    483,750 
Total Intangible Assets       $1,612,500   $1,612,500 
Accumulated amortization        (54,084)   (36,056)
Intangible assets, net       $1,558,416   $1,576,444 

 

Capitalized software represents the development costs for internal-use software. The software application is still in development with costs continuing to be capitalized and no amortization expense being recognized yet. Capitalization will cease and amortization will begin once development is substantially complete. The Capitalized software costs will be amortized over the estimated life of the software. There were no impairments recognized during the periods ended March 31, 2022 and December 31, 2021.

 

The intangible assets represent the value the Company paid to acquire the trademark “AllergiEnd”, the web domain “AllergiEnd.com” along with the U.S. Method Patent registration relating to the allergy testing kit and related materials the Company distributes to physician clients. The Company acquired the intangible assets from MedScience Research Group as of June 23, 2021 for total consideration of $1,612,500 which was financed through a combination of restricted stock and a promissory note. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, Business Combination, Related Issues, Initial Measurement. The assets are being amortized over their useful lives beginning July 1, 2021. The Trademark and Web Domain are determined to have an indefinite life and will be tested annually for impairment in accordance with ASC 350-30-35, Intangibles, General Intangibles Other Than Goodwill. There was $18,028 of amortization expense during the quarter ended March 31, 2022 and no amortization expense during the quarter ended March 31, 2021.

 

XML 19 R11.htm IDEA: XBRL DOCUMENT v3.22.1
Loans Payable
3 Months Ended
Mar. 31, 2022
Loans Payable  
Loans Payable

Note 5. Loans Payable

 

On June 23, 2021, the Company entered into a purchase agreement to acquire certain assets from MedScience Research Group, Inc (“MedScience”) (See Note 4 for additional information). As part of that purchase agreement, the Company issued a Promissory Note with a principal sum of $750,000. The principal, along with associated interest, are being paid in 36 equal monthly installments that began in July 2021. The principal balance of the loan is divided between current and long-term liabilities on the Company’s condensed consolidated balance sheets. The combined principal due along with accrued interest as of March 31, 2022 is $586,716 and as of December 31, 2021 was $644,158.

 

On March 2, 2022, the Company entered into a fixed-fee short-term loan with its merchant bank and received $128,500 in loan proceeds. The loan payable, which is split between current and long-term liabilities on the Company’s condensed consolidated balance sheets, is due in August 2023. The loan is repaid by the merchant bank withholding an agreed-upon percentage of payments they process on behalf of the Company with a minimum of $16,305 paid every 60 days. As of March 31, 2022, the loan balance is $117,117. The prior fixed-fee short-term loan with the same merchant bank had a balance of $16,793 as of December 31, 2021 and was paid in full during the first quarter 2022.

 

 

XML 20 R12.htm IDEA: XBRL DOCUMENT v3.22.1
Convertible Notes Payable
3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Convertible Notes Payable

Note 6. Convertible Notes Payable

 

Convertible notes payable at March 31, 2022 and December 31, 2021, consist of the following:

 

   March 31,
2022
   December 31,
2021
 
Note 1 – Accredited investors  $-   $25,000 
Note 2 – Shareholder   100,000    100,000 
Note 3 – Mercer Note   756,000    756,000 
Total  856,000   881,000 
Debt discount and issuance costs  (142,046)  (238,896)
Total convertible notes payable   713,954    642,104 
Less: current portion   613,954    542,104 
Non-current portion  $100,000   $100,000 

 

Note 1 – Effective December 23, 2020, the Company issued a Convertible Promissory Note in the principal amount of $25,000 to a shareholder (Note 1). This Note was issued under a subscription agreement dated September 25, 2020. As of March 31, 2022 and December 31, 2021, this note had $0 and $2,555, respectively, of accrued interest. On February 23, 2022 the shareholder elected to convert the outstanding principal of $25,000 along with accrued interest into 59,415 shares of common stock at a price of $0.47 per share. Additionally, the shareholder received warrants exercisable for two years to purchase 14,854 common shares at $0.705 per share.

 

Note 2 – Effective May 7, 2021, the Company issued a Convertible Promissory Note in the principal amount of $100,000 to a shareholder (Note 2). The Note bears interest at the rate of 10% per annum and matures on September 30, 2022 (the “Maturity Date”) at which date all outstanding principal and accrued and unpaid interest are due and payable. The Company may satisfy the Note upon maturity or Default, as defined, by the issuance of common shares at a conversion price equal to the greater of a 25% discount to the 15-day average market price of the Company’s common stock or $0.50. The principal and interest accrued are convertible at any time through the maturity date of September 30, 2022 at the option of the holder using the same conversion calculation. As of March 31, 2022 and December 31, 2021, this note had $8,986 and $6,521, respectively, of accrued interest.

 

Note 3 – Effective August 10, 2021, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which it issued to the investor an Original Issue Discount Secured Convertible Promissory Note (the “Note”) in the principal amount of $806,000 and warrants to purchase 930,000 shares of the Company’s common stock for aggregate consideration of $750,000. In addition, pursuant to the Purchase Agreement the Company entered into a Registration Rights Agreement with the investor.

 

The principal amount of the Note and all interest accrued thereon is payable on August 10, 2022, and are secured by a lien on substantially all of the Company’s assets. The Note provides for interest at the rate of 5% per annum, payable at maturity, and is convertible into common stock at a price of $0.65 per share. In addition to customary anti-dilution adjustments upon the occurrence of certain corporate events, the Note provides, subject to certain limited exceptions, that if we issue any common stock or common stock equivalents, as defined in the Note, at a per share price lower than the conversion price then in effect, the conversion price will be reduced to the per share price at which such stock or common stock equivalents were sold. The conversion price of the Note had been subject to a potential decrease if the average closing price of the Company’s common stock during any ten consecutive trading days beginning September 16, 2021, and ending on November 15, 2021, was below $0.65. As the trading price of the common stock has not been below $0.65 since September 21, 2021, this provision is no longer operative.

 

On November 11, 2021, Mercer Street Global Opportunity Fund, LLC, converted $50,000 of the principal amount of the $806,000 Secured Convertible Promissory Note issued August 10, 2021, into 76,923 shares of the Company’s common stock at a price of $0.65 per share.

 

The 930,000 Warrants are initially exercisable for a period of three years at a price of $1.25 per share, subject to customary anti-dilution adjustments upon the occurrence of certain corporate events as set forth in the Warrant. The shares issuable upon conversion of the Note and exercise of the Warrants are to be registered under the Securities Act of 1933, as amended, for resale by the investor as provided in the Registration Rights Agreement. The Warrants may be exercised by means of a “cashless exercise” if at any time the shares issuable upon exercise of the Warrant are not covered by an effective registration statement.

 

 

The Company accounts for the allocation of its issuance costs to its Warrants in accordance with ASC 470-20, Debt with Conversion and Other Options. Under this guidance, if debt or stock is issued with detachable warrants, the proceeds need to be allocated to the two instruments using either the fair value method, the relative fair value method, or the residual value method. The Company used the relative fair value at the time of issuance to allocate the value received between the convertible note and the warrants.

 

The Company estimated the fair value of the Warrants utilizing the Black-Scholes pricing model, which is dependent upon several assumptions such as the expected term of the Warrants, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected term and expected dividend yield rate over the expected term. The Company believes this valuation methodology is appropriate for estimating the fair value of warrants. The value allocated to the relative fair value of the Warrants was recorded as debt issuance costs and additional paid in capital.

 

The principal, net of the original issue discount and debt issuance costs, including the allocated relative fair value of the Warrants, which are being recognized over the life of the Note, along with associated interest, is recorded with current liabilities on the Company’s condensed consolidated balance sheets. As of March 31, 2022, this Note had $24,767 of accrued interest, total unamortized debt issuance costs of $121,794, including the Warrant value, and the remaining discount of $20,252. As of December 31, 2021, this note had $15,446 of accrued interest, total unamortized debt issuance costs of $204,835, including the Warrant value, and the remaining discount of $34,060.

 

XML 21 R13.htm IDEA: XBRL DOCUMENT v3.22.1
Preferred Stock
3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Preferred Stock

Note 7. Preferred Stock

 

Series A Preferred Stock

 

The shares of Series A Preferred Stock have a stated value of $0.25 per share and are initially convertible into shares of common stock at a price of $0.05 per share (subject to adjustment upon the occurrence of certain events). The Series A Preferred Stock does not accrue dividends and ranks prior to the common stock upon a liquidation of the Company. The Series A Preferred Stock votes on all matters brought before the shareholders together with the Common stock as a single class and each share of Series A Preferred Stock has a number of votes, initially 5, equal to the number of shares of preferred stock into which it is convertible as of the record date for any vote.

 

Series A-2 Preferred Stock

 

On December 30, 2021, the Company issued 2,644,424 of the Company’s Series A-2 Convertible Preferred Shares to its principal shareholder in satisfaction of multiple outstanding convertible promissory notes with initial principal amounts totaling $286,078 together with all interest accrued thereon.

 

The rights of holders of the Company’s common stock with respect to the payment of dividends and upon liquidation are junior in right of payment to holders of the Series A-2 Convertible Preferred Shares. The rights of the holders of the Company’s Series A-2 Preferred Shares are pari passu to the rights of the holders of the Company’s Series A Preferred Shares currently outstanding.

 

Holders of the Series A-2 Convertible Preferred Stock will vote on an as converted basis with the holders of the Company’s common stock and Series A Preferred Shares as to all matters to be voted on by the holders of the common stock. Each Series A-2 Preferred Share shall be entitled to a number of votes equal to five times the number of shares of common stock into which it is then convertible on the applicable record date.

 

 

XML 22 R14.htm IDEA: XBRL DOCUMENT v3.22.1
Loss Per Common Share
3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Loss Per Common Share

Note 8. Loss Per Common Share

 

The Company calculates net loss per common share in accordance with ASC 260, Earnings Per Share. Basic and diluted net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. The Company’s potentially dilutive shares, which include shares issuable upon exercise or conversion of outstanding common stock options, common stock warrants, and convertible debt have not been included in the computation of diluted net loss per share for the quarters ended March 31, 2022 and 2021 as the result would be anti-dilutive.

 

       
   Three Months Ended March 31, 
   2022   2021 
Stock options   1,100,000    650,000 
Stock warrants   1,026,647    - 
Total shares excluded from calculation   2,126,647    650,000 

 

XML 23 R15.htm IDEA: XBRL DOCUMENT v3.22.1
Stock-based Compensation
3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation

Note 9. Stock-based Compensation

 

During the three-month periods ended March 31, 2022 and 2021, there was $8,920 in stock-based compensation associated with stock options included in Research and development expense. Additionally, during the same periods there was expense associated with shares issued for services. The following table shows how the expenses associated with shares issued for services were classified in the condensed consolidated statements of operations during the respective periods.

       
   Three Months Ended March 31, 
   2022   2021 
Research and development  $-   $21,625 
Sales and marketing   -    29,187 
General and administrative   3,484    17,581 
Total expense – shares issued for services  $3,484   $68,393 

 

 

During the three months ended March 31, 2021 there were 450,000 options granted to certain scientific and business advisors (“Advisors”) with a weighted-average exercise price of $0.65. The options vest in equal annual installments over three years beginning in April 2021 and expire five years after grant date. There were no options exercised, forfeited or cancelled during the period. During the three months ended March 31, 2022 there were no options granted.

 

As of March 31, 2022, there was $27,164 of unrecognized compensation related to 1,100,000 outstanding options which is expected to be recognized over a weighted-average period of 11 months. The options are being expensed over the vesting period for each Advisor. The weighted-average grant date fair value for options granted during the three months ended March 31, 2021 was $0.12.

 

The fair value of all options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used:

   Three Months Ended
March 31, 2022
   Three Months Ended
March 31, 2021
 
Risk-free interest rate   N/A    0.21%
Expected life of the options   N/A    3.5 years 
Expected volatility of the underlying stock   N/A    76.3%
Expected dividend rate   N/A    0%

 

The risk-free interest rates are derived from the U.S. Treasury yield curve in effect on the date of grant for instruments with a remaining term similar to the expected term of the options. The expected life of the options is based on the option term. Due to the Company’s limited historical data, the expected volatility is calculated based upon the historical volatility of comparable companies whose share prices are publicly available for a sufficient period of time. The dividend rate is based on the Company never paying or having the intent to pay any cash dividends.

 

 

Options outstanding at March 31, 2022 consist of:

 

Date Issued  Number
Outstanding
   Number
Exercisable
   Exercise Price   Expiration Date
March 12, 2020   500,000    333,333   $0.40   March 12, 2025
June 27, 2020   150,000    100,000   $0.40   June 27, 2025
January 1, 2021   450,000    150,000   $0.65   December 31, 2025
Total   1,100,000    583,333         

 

Warrants outstanding at March 31, 2022 consist of:

 

Date Issued  Number
Outstanding
   Number
Exercisable
   Exercise Price   Expiration Date
March 16, 2021   15,900    15,900   $0.75   March 15, 2023
May 7, 2021   53,704    53,704   $0.74   May 6, 2023
June 17, 2021   12,189    12,189   $0.83   June 16, 2023
August 10, 2021   930,000    930,000   $1.25   August 9, 2024
February 23, 2022   14,854    14,854   $0.705   February 22, 2024
Total   1,026,647    1,026,647         

 

XML 24 R16.htm IDEA: XBRL DOCUMENT v3.22.1
Related Party Transactions
3 Months Ended
Mar. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions

Note 10. Related Party Transactions

 

Convertible notes payable, related party: See Note 6.

 

XML 25 R17.htm IDEA: XBRL DOCUMENT v3.22.1
Income Taxes
3 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11. Income Taxes

 

For the three month period ended March 31, 2022 and the year ended December 31, 2021, the Company did not record a tax provision as the Company did not earn any taxable income in either period and maintains a full valuation allowance against its net deferred tax assets.

 

XML 26 R18.htm IDEA: XBRL DOCUMENT v3.22.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 12. Commitments and Contingencies

 

On February 9, 2021, the Company entered into a Receivables Purchase and Security Agreement (“Factoring Agreement”) with a Factoring Company. The Factoring Agreement has an initial term of one year and, in accordance with its terms, has been renewed for an additional year.

 

Under the terms of the agreement, designated receivables are sold for periodic advances of up to $150,000. The Factoring Company retains a reserve of 10% of purchased receivables with the balance available to the Company. Factoring fees begin at 1.8% for the first 30 days a purchased invoice is outstanding and increase the longer an invoice remains outstanding. After 90 days, the Factoring Company has the right to assign the invoice back to the Company. The Factoring Agreement includes minimum average monthly volumes.

 

As of March 31, 2022, the balance of outstanding invoices that the Factoring Company may assign back to the Company if not collected within 90 days is included in the Company’s Accounts Receivable balance with the amounts received, net of reserves held, included with other current liabilities on the condensed consolidated balance sheets. The net amount included in other current liabilities is $10,334 and $25,420 as of March 31, 2022 and December 31, 2021, respectively.

 

There are no pending or threatened legal proceedings as of March 31, 2022. The Company has no non-cancellable operating leases.

XML 27 R19.htm IDEA: XBRL DOCUMENT v3.22.1
Basis of Presentation (Policies)
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates: The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

 

 

Principles of Consolidation

Principles of Consolidation: The condensed consolidated financial statements include the accounts of QHSLab, Inc. and its wholly owned subsidiaries USAQ Corporation, Inc., and Medical Practice Income, Inc. All significant inter-company balances and transactions have been eliminated.

 

Cash and Cash Equivalents

Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents.

 

Accounts Receivable

Accounts Receivable: The Company extends unsecured credit to its customers on a regular basis. Management monitors the payments on outstanding balances and will establish a reserve for uncollectible balances as necessary based on experience.

 

Inventories

Inventories: Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. The Company uses actual costs to determine its cost basis for inventories. Inventories consist of only finished goods.

 

Capitalized Software Development Costs

Capitalized Software Development Costs: Software development costs for internal-use software are accounted for in accordance with Accounting Standards Codification (“ASC”) 350-40, Internal-Use Software. Development costs that are incurred during the application development stage begin to be capitalized when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases once the software is substantially complete and ready for its intended use. Costs incurred during the preliminary project stage of software development and post-implementation operating stages are expensed as incurred. Amortization is calculated on a straight-line basis over the remaining economic life of the software (typically three to five years) and will be included in the operating expenses on the condensed consolidated Statements of Operations once amortization begins.

 

The estimated useful lives of software are reviewed at least annually and will be tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets.

 

Capitalized software development costs for internal-use software totaled $223,390 as of March 31, 2022 and $186,271 as of December 31, 2021. The software application is still in development with costs continuing to be capitalized and no amortization expense being recognized during the periods ended March 31, 2022 and December 31, 2021. There were no impairments recognized during the periods ended March 31, 2022 and December 31, 2021.

 

Intangible Assets: Intangible assets represent the value the Company paid to acquire assets including a trademark, patent and web domain on June 23, 2021. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, Business Combination, Related Issues, Initial Measurement. These assets are accounted for in accordance with ASC 350-30, Intangibles, General Intangibles Other Than Goodwill. The cost of the assets is amortized over the remaining useful life of the assets as follows:

 

U.S. Method Patent 13.4 years
   
Web Domain Indefinite life
   
Trademark Indefinite life

 

The estimated useful lives and carrying value of the assets are reviewed at least annually or whenever events or circumstances may result in an impact to the value of the assets.

 

 

Convertible Notes Payable: The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, Derivatives and Hedging, in accordance with the provisions of ASC 470-20, Debt with Conversion and Other Options, which provides guidance on accounting for convertible securities with beneficial conversion features. ASC 470-20 addresses classification determination for specific obligations, such as short-term obligations expected to be refinanced on a long-term basis, due-on-demand loan arrangements, callable debt, sales of future revenue, increasing rate debt, debt that includes covenants, revolving credit agreements subject to lock-box arrangements and subjective acceleration clauses. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.

 

Revenue Recognition

Revenue Recognition: Pursuant to ASC Topic 606, Revenue from Contracts with Customers, or ASC 606, the Company recognizes revenue upon transfer of control of goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. The Company does not allow for the return of products and therefore does not establish an allowance for returns.

 

To determine the revenue to be recognized for transactions that the Company determines are within the scope of ASC 606, the Company follows the established five-step framework as follows:

 

  (i) identify the contract(s) with a customer;
  (ii) identify the performance obligations in the contract(s);
  (iii) determine the transaction price;
  (iv) allocate the transaction price to the performance obligations in the contract(s); and
  (v) recognize revenue when (or as) the Company satisfies a performance obligation.

 

The Company sells allergy diagnostic-related products and immunotherapy treatments to physicians. Revenue is recognized once the Company satisfies its performance obligation which occurs at the point in time when title and possession of products have transitioned to the customer, typically upon delivery of the products.

 

The Company includes shipping and handling fees billed to customers in revenue.

 

There are several practical expedients and exemptions allowed under ASC 606 that impact timing of revenue recognition and disclosures. The Company elected to treat similar contracts as a portfolio of contracts, as allowed under ASC 606. The contracts that fall within the portfolio have the same terms and management has the expectation that the result will not be materially different from the consideration of each individual contract.

 

Research and Development

Research and Development: Research and development expense is primarily related to developing and improving methods related to the Company’s Software as a Service (SaaS) platform. Research and development expenses are expensed when incurred. For the three months ended March 31, 2022 and 2021, there were $28,979 and $28,021 of research and development expenses incurred, respectively.

 

 

Stock-based Compensation

Stock-based Compensation: The Company applies the fair value method of ASC 718, Share Based Payment, in accounting for its stock-based compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company’s common stock and other pertinent factors at the grant date.

 

Earnings Per Common Share

Earnings Per Common Share: Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options and warrants to purchase common stock (only if those options and warrants are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of March 31, 2022 or 2021.

 

Income Taxes

Income Taxes: The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

 

The Company has net operating losses of $2,709,199 which begin to expire in 2027. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.

 

Recently Issued Accounting Standards

Recently Issued Accounting Standards

 

In August 2020, the Financial Accounts Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), or ASU 2020-06. The updated guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. Consequently, more convertible debt instruments will be reported as single liability instruments with no separate accounting for embedded conversion features. The ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. In addition, ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. The Company adopted the provisions of ASU 2020-06 using a modified retrospective approach, which resulted in no cumulative effect adjustment to stockholders’ deficit as of January 1, 2021.

 

This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have a current and/or future impact on or are unrelated to the Company’s financial condition, results of operations, cash flows or disclosures.

XML 28 R20.htm IDEA: XBRL DOCUMENT v3.22.1
Basis of Presentation (Tables)
3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
Schedule of Indefinite-Lived Intangible Assets

 

U.S. Method Patent 13.4 years
   
Web Domain Indefinite life
   
Trademark Indefinite life
XML 29 R21.htm IDEA: XBRL DOCUMENT v3.22.1
Capitalized Software and Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2022
Research and Development [Abstract]  
Schedule of Intangible Assets

Non-current assets consist of the following at March 31, 2022 and December 31, 2021:

 

   Estimated Useful Life
(in years)
   March 31,
2022
   December 31,
2021
 
Capitalized Software   TBD   $223,390   $186,271 
Intangible Assets:               
U.S. Method Patent   13.4   $967,500   $967,500 
Web Domain   N/A    161,250    161,250 
Trademark   N/A    483,750    483,750 
Total Intangible Assets       $1,612,500   $1,612,500 
Accumulated amortization        (54,084)   (36,056)
Intangible assets, net       $1,558,416   $1,576,444 
XML 30 R22.htm IDEA: XBRL DOCUMENT v3.22.1
Convertible Notes Payable (Tables)
3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Convertible Notes Payable

Convertible notes payable at March 31, 2022 and December 31, 2021, consist of the following:

 

   March 31,
2022
   December 31,
2021
 
Note 1 – Accredited investors  $-   $25,000 
Note 2 – Shareholder   100,000    100,000 
Note 3 – Mercer Note   756,000    756,000 
Total  856,000   881,000 
Debt discount and issuance costs  (142,046)  (238,896)
Total convertible notes payable   713,954    642,104 
Less: current portion   613,954    542,104 
Non-current portion  $100,000   $100,000 
XML 31 R23.htm IDEA: XBRL DOCUMENT v3.22.1
Loss Per Common Share (Tables)
3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Anti-dilutive Securities Excluded From Calculation of Earning Per Share

 

       
   Three Months Ended March 31, 
   2022   2021 
Stock options   1,100,000    650,000 
Stock warrants   1,026,647    - 
Total shares excluded from calculation   2,126,647    650,000 
XML 32 R24.htm IDEA: XBRL DOCUMENT v3.22.1
Stock-based Compensation (Tables)
3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expenses

       
   Three Months Ended March 31, 
   2022   2021 
Research and development  $-   $21,625 
Sales and marketing   -    29,187 
General and administrative   3,484    17,581 
Total expense – shares issued for services  $3,484   $68,393 
Schedule of Fair Value of Option Grant of Weighted-average Assumptions

The fair value of all options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used:

   Three Months Ended
March 31, 2022
   Three Months Ended
March 31, 2021
 
Risk-free interest rate   N/A    0.21%
Expected life of the options   N/A    3.5 years 
Expected volatility of the underlying stock   N/A    76.3%
Expected dividend rate   N/A    0%
Schedule of Options Outstanding and Exercisable

Options outstanding at March 31, 2022 consist of:

 

Date Issued  Number
Outstanding
   Number
Exercisable
   Exercise Price   Expiration Date
March 12, 2020   500,000    333,333   $0.40   March 12, 2025
June 27, 2020   150,000    100,000   $0.40   June 27, 2025
January 1, 2021   450,000    150,000   $0.65   December 31, 2025
Total   1,100,000    583,333         
Schedule of Warrants Outstanding and Exercisable

Warrants outstanding at March 31, 2022 consist of:

 

Date Issued  Number
Outstanding
   Number
Exercisable
   Exercise Price   Expiration Date
March 16, 2021   15,900    15,900   $0.75   March 15, 2023
May 7, 2021   53,704    53,704   $0.74   May 6, 2023
June 17, 2021   12,189    12,189   $0.83   June 16, 2023
August 10, 2021   930,000    930,000   $1.25   August 9, 2024
February 23, 2022   14,854    14,854   $0.705   February 22, 2024
Total   1,026,647    1,026,647         
XML 33 R25.htm IDEA: XBRL DOCUMENT v3.22.1
Schedule of Indefinite-Lived Intangible Assets (Details)
3 Months Ended
Mar. 31, 2022
Web Domain [Member]  
Finite-Lived Intangible Assets [Line Items]  
Impaired intangible asset Indefinite life
Trademarks [Member]  
Finite-Lived Intangible Assets [Line Items]  
Impaired intangible asset Indefinite life
Patents [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, amortization method 13 years 4 months 24 days
XML 34 R26.htm IDEA: XBRL DOCUMENT v3.22.1
Basis of Presentation (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Capitalized software development costs for software sold to customers $ 223,390   $ 186,271
Capitalized computer software, amortization 0   0
Capitalized computer software, impairments 0   $ 0
Research and development expense $ 28,979 $ 28,021  
Common stock equivalent shares of weighted average shares outstanding dilutive 2,126,647 650,000  
Operating loss carryforwards $ 2,709,199    
Net operating losses carryforwards, expire date begin to expire in 2027    
Common Stock [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Common stock equivalent shares of weighted average shares outstanding dilutive 0   0
XML 35 R27.htm IDEA: XBRL DOCUMENT v3.22.1
Schedule of Intangible Assets (Details) - USD ($)
3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Total Intangible Assets $ 1,612,500 $ 1,612,500
Intangible Assets:    
Accumulated amortization (54,084) (36,056)
Intangible assets, net 1,558,416 1,576,444
Computer Software, Intangible Asset [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total Intangible Assets 223,390 186,271
Patents [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total Intangible Assets $ 967,500 967,500
Intangible Assets:    
Finite-lived intangible assets, amortization method 13 years 4 months 24 days  
Web Domain [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total Intangible Assets $ 161,250 161,250
Trademarks [Member]    
Finite-Lived Intangible Assets [Line Items]    
Total Intangible Assets $ 483,750 $ 483,750
XML 36 R28.htm IDEA: XBRL DOCUMENT v3.22.1
Capitalized Software and Intangible Assets (Details Narrative) - USD ($)
3 Months Ended 12 Months Ended
Jun. 23, 2021
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Research and Development [Abstract]        
Capitalized computer software, impairments   $ 0   $ 0
Acquired intangible assets $ 1,612,500      
Amortization expense   $ 18,028  
XML 37 R29.htm IDEA: XBRL DOCUMENT v3.22.1
Loans Payable (Details Narrative) - USD ($)
Mar. 02, 2022
Mar. 31, 2022
Dec. 31, 2021
Jun. 23, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Debt default longterm debt amount   $ 586,716 $ 644,158  
Proceeds from Issuance of Debt $ 128,500      
Payments for loan $ 16,305      
Loan payable   $ 117,117    
Merchant Bank [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Loan payable     $ 16,793  
Purchase Agreement [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Debt instrument face amount       $ 750,000
XML 38 R30.htm IDEA: XBRL DOCUMENT v3.22.1
Schedule of Convertible Notes Payable (Details) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Short-Term Debt [Line Items]    
Total $ 856,000 $ 881,000
Debt discount and issuance costs (142,046) (238,896)
Total convertible notes payable 713,954 642,104
Less: current portion 613,954 542,104
Non-current portion 100,000 100,000
Convertible Notes Payable One [Member] | Accredited Investor [Member]    
Short-Term Debt [Line Items]    
Total 25,000
Convertible Notes Payable Two [Member] | Shareholder [Member]    
Short-Term Debt [Line Items]    
Total 100,000 100,000
Convertible Notes Payable Three [Member] | Mercer Street Global Opportunity Fund LLC [Member]    
Short-Term Debt [Line Items]    
Total $ 756,000 $ 756,000
XML 39 R31.htm IDEA: XBRL DOCUMENT v3.22.1
Convertible Notes Payable (Details Narrative) - USD ($)
3 Months Ended
Nov. 11, 2021
Aug. 10, 2021
May 07, 2021
Dec. 23, 2020
Mar. 31, 2022
Mar. 31, 2021
Aug. 10, 2022
Feb. 23, 2022
Dec. 31, 2021
Nov. 15, 2021
Sep. 21, 2021
Short-Term Debt [Line Items]                      
Interest Payable, Current         $ 24,767       $ 15,446    
Stock Issued During Period, Value, Conversion of Convertible Securities         27,925 $ 194,211          
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net         121,794       204,835    
Debt Instrument, Unamortized Discount         20,252       34,060    
Convertible Promissory Note Ten [Member]                      
Short-Term Debt [Line Items]                      
Debt instrument convertible conversion price1                   $ 0.65 $ 0.65
Convertible Promissory Note Ten [Member] | Subsequent Event [Member]                      
Short-Term Debt [Line Items]                      
Debt instrument convertible conversion price1             $ 0.65        
Debt instrument interest rate stated percentage             5.00%        
Mercer Street Global Opportunity Fund LLC [Member]                      
Short-Term Debt [Line Items]                      
Debt instrument, principal amount $ 806,000                    
Debt instrument convertible conversion price1 $ 0.65                    
Class of Warrant or Right, Number of Securities Called by Warrants or Rights 930,000                    
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 1.25                    
Stock Issued During Period, Value, Conversion of Convertible Securities $ 50,000                    
Stock Issued During Period, Shares, Conversion of Convertible Securities 76,923                    
Convertible Notes Payable One [Member] | Accredited Investor [Member]                      
Short-Term Debt [Line Items]                      
Debt instrument, principal amount       $ 25,000       $ 25,000      
Debt Instrument, Maturity Date       Sep. 25, 2020              
Interest Payable, Current         0     $ 59,415 2,555    
Debt instrument convertible conversion price1               $ 0.47      
Class of Warrant or Right, Number of Securities Called by Warrants or Rights               14,854      
Class of Warrant or Right, Exercise Price of Warrants or Rights               $ 0.705      
Convertible Notes Payable Two [Member] | Shareholder [Member]                      
Short-Term Debt [Line Items]                      
Debt instrument, principal amount     $ 100,000                
Debt Instrument, Maturity Date     Sep. 30, 2022                
Interest Payable, Current         $ 8,986       $ 6,521    
Debt instrument interest rate stated percentage     10.00%                
Debt Instrument, Description     The Company may satisfy the Note upon maturity or Default, as defined, by the issuance of common shares at a conversion price equal to the greater of a 25% discount to the 15-day average market price of the Company’s common stock or $0.50. The principal and interest accrued are convertible at any time through the maturity date of September 30, 2022 at the option of the holder using the same conversion calculation                
Convertible Notes Payable Three [Member] | Mercer Street Global Opportunity Fund LLC [Member]                      
Short-Term Debt [Line Items]                      
Debt instrument, principal amount   $ 806,000                  
Warrants to purchase common stock   930,000                  
Proceeds from Warrant Exercises   $ 750,000                  
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Preferred Stock (Details Narrative) - USD ($)
Dec. 30, 2021
Sep. 01, 2019
Mar. 31, 2022
Dec. 31, 2021
Series A Preferred Stock [Member]        
Class of Stock [Line Items]        
Preferred stock stated value   $ 0.25 $ 0.0001 $ 0.0001
Debt instrument, conversion price   $ 0.05    
Preferred stock voting rights description   The Series A Preferred Stock does not accrue dividends and ranks prior to the common stock upon a liquidation of the Company. The Series A Preferred Stock votes on all matters brought before the shareholders together with the Common stock as a single class and each share of Series A Preferred Stock has a number of votes, initially 5, equal to the number of shares of preferred stock into which it is convertible as of the record date for any vote.    
Series A2 Convertible Preferred Shares [Member]        
Class of Stock [Line Items]        
Stock Issued During Period, Value, New Issues $ 2,644,424      
Debt Instrument, Face Amount $ 286,078      
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Schedule of Anti-dilutive Securities Excluded From Calculation of Earning Per Share (Details) - shares
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total shares excluded from calculation 2,126,647 650,000
Stock Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total shares excluded from calculation 1,100,000 650,000
Stock Warrant [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total shares excluded from calculation 1,026,647
XML 42 R34.htm IDEA: XBRL DOCUMENT v3.22.1
Schedule of Stock-based Compensation Expenses (Details) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total expense – shares issued for services $ 3,484 $ 68,393
Research and Development Expense [Member]    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total expense – shares issued for services 21,625
Selling and Marketing Expense [Member]    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total expense – shares issued for services 29,187
General and Administrative Expense [Member]    
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total expense – shares issued for services $ 3,484 $ 17,581
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Schedule of Fair Value of Option Grant of Weighted-average Assumptions (Details)
3 Months Ended
Mar. 31, 2021
Share-Based Payment Arrangement [Abstract]  
Risk-free interest rate 0.21%
Expected life of the options 3 years 6 months
Expected volatility of the underlying stock 76.30%
Expected dividend rate 0.00%
XML 44 R36.htm IDEA: XBRL DOCUMENT v3.22.1
Schedule of Options Outstanding and Exercisable (Details)
3 Months Ended
Mar. 31, 2022
$ / shares
shares
Option One [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Mar. 12, 2020
Number Outstanding 500,000
Number Exercisable 333,333
Exercise Price | $ / shares $ 0.40
Expiration Date Mar. 12, 2025
Option Two [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Jun. 27, 2020
Number Outstanding 150,000
Number Exercisable 100,000
Exercise Price | $ / shares $ 0.40
Expiration Date Jun. 27, 2025
Option Three [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Jan. 01, 2021
Number Outstanding 450,000
Number Exercisable 150,000
Exercise Price | $ / shares $ 0.65
Expiration Date Dec. 31, 2025
Options Held [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number Outstanding 1,100,000
Number Exercisable 583,333
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Schedule of Warrants Outstanding and Exercisable (Details)
3 Months Ended
Mar. 31, 2022
$ / shares
shares
Warrant One [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Mar. 16, 2021
Number Outstanding 15,900
Number Exercisable 15,900
Exercise Price | $ / shares $ 0.75
Expiration Date Mar. 15, 2023
Warrant Two [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued May 07, 2021
Number Outstanding 53,704
Number Exercisable 53,704
Exercise Price | $ / shares $ 0.74
Expiration Date May 06, 2023
Warrant Three [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Jun. 17, 2021
Number Outstanding 12,189
Number Exercisable 12,189
Exercise Price | $ / shares $ 0.83
Expiration Date Jun. 16, 2023
Warrant Four [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Aug. 10, 2021
Number Outstanding 930,000
Number Exercisable 930,000
Exercise Price | $ / shares $ 1.25
Expiration Date Aug. 09, 2024
Warrant Five [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Date Issued Feb. 23, 2022
Number Outstanding 14,854
Number Exercisable 14,854
Exercise Price | $ / shares $ 0.705
Expiration Date Feb. 22, 2024
Warrant [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Number Outstanding 1,026,647
Number Exercisable 1,026,647
XML 46 R38.htm IDEA: XBRL DOCUMENT v3.22.1
Stock-based Compensation (Details Narrative) - USD ($)
3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]    
Share-Based Payment Arrangement, Noncash Expense $ 8,920 $ 8,920
Unrecognized compensation related to unvested options $ 27,164  
Unrecognized compensation related to unvested options, shares 1,100,000  
Recognized weighted-average period 11 months  
Weighted-average fair value for options granted   $ 0.12
Scientific Advisors [Member]    
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]    
Number of options granted   450,000
Weighted-average exercise price   $ 0.65
Options vesting term   3 years
Options expiration period   5 years
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Commitments and Contingencies (Details Narrative) - USD ($)
Feb. 09, 2021
Mar. 31, 2022
Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Other current liabilities   $ 46,328 $ 58,615
Factoring Agreement [Member]      
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]      
Agreement term 1 year    
Advances on sale on receivables $ 150,000    
Reserve of purchased receivables, percentage 10.00%    
Factoring fees, percentage 1.80%    
Other current liabilities   $ 10,334 $ 25,420
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NV 30-1104301 901 Northpoint Parkway Suite 302 West Palm Beach FL 33407 (929) 379-6503 Common Stock, $0.0001 Par Value USAQ Yes Yes Non-accelerated Filer true true false false 8815508 155557 286855 96093 70474 73153 65740 71888 22713 396691 445782 223390 186271 1558416 1576444 2178497 2208497 33045 20370 46328 58615 342239 253865 613954 542104 1035566 874954 8986 6521 357834 402956 100000 100000 466820 509477 1502386 1384431 10000000 10000000 0.0001 0.0001 1080092 1080092 1080092 1080092 108 108 0.0001 0.0001 2644424 2644424 2644424 2644424 264 264 900000000 900000000 0.0001 0.0001 8815508 8815508 8756093 8756093 882 876 3484 6968 3387540 3348681 -2709199 -2518895 676111 824066 2178497 2208497 355330 304336 166642 170757 188688 133579 113294 111688 89514 70127 28979 28021 18028 249815 209836 -61127 -76257 127157 10429 -2020 -190304 -86686 -0.02 -0.01 8779859 6833261 1080092 108 2644424 264 8756093 876 -6968 3348681 -2518895 824066 3484 3484 59415 6 27919 27925 2020 2020 8920 8920 -190304 -190304 1080092 108 2644424 264 8815508 882 -3484 3387540 -2709199 676111 1080092 108 6562735 656 -124479 1264108 -1748719 -608326 150000 15 -89419 89985 581 496718 50 194161 194211 -100000 -10 10 67812 67812 8920 8920 -86686 -86686 1080092 108 7109453 711 -146086 1557184 -1835405 -423488 -190304 -86686 18028 96850 8920 8920 3484 68393 -2020 25619 9975 7413 -38561 49175 1088 12675 -67556 -14257 -433 7360 16972 -137431 -32892 37119 26882 -37119 -26882 128500 85248 43252 -131298 -59774 286855 94342 155557 34568 18519 21 27925 194211 <p id="xdx_80C_eus-gaap--NatureOfOperations_zgxz2EMWq9S6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 1. <span id="xdx_82A_zLqdEokY2bUb">The Company</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">QHSLab, Inc. (f/k/a USA Equities Corp.) (the “Company”, or the “Registrant”) was incorporated in Delaware on September 1, 1983<span style="background-color: white">. </span> In 2015, the Company changed its name to USA Equities Corp. On September 23, 2021, the Company changed its state of incorporation from Delaware to Nevada as a result of a merger with and into its newly formed wholly-owned subsidiary, USA Equities Corp., a Nevada corporation (“USA Equities Nevada”), the surviving entity pursuant to an Agreement and Plan of Merger. The reincorporation was approved by the stockholders of the Company and USA Equities Nevada is deemed to be the successor to USA Equities Corp, the Delaware corporation. <span style="background-color: white">On April 19, 2022, the Company changed its name to QHSLab, Inc.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is a medical device technology and software as a service (“SaaS”) company focused on enabling primary care physicians (“PCP’s”) to increase their revenues by providing them with relevant, value-based tools to evaluate and treat chronic disease as well as provide preventive care through reimbursable procedures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_805_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zToOdDnAIyyh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 2. <span id="xdx_82B_z2jvOh6rzxwi">Going Concern</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses since inception, has negative operational cash flows and began recognizing revenues in the fourth quarter of fiscal 2020. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The continuation of the Company’s business is dependent upon its ability to achieve profitability and positive cash flows and, pending such achievement, future issuances of equity or other financings to fund ongoing operations. However, access to such funding may not be available on commercially reasonable terms, if at all. These condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_807_eus-gaap--BasisOfPresentationAndSignificantAccountingPoliciesTextBlock_zx7Sn4xgy1qa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 3. <span id="xdx_82D_zmwCmu3tOaYf">Basis of Presentation</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of financial position, results of operations, and cash flows. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes included in our Annual Report on Form 10- K for the year ended December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The accounting policies are described in the “Notes to the Consolidated Financial Statements” in the 2021 Annual Report on Form 10-K and updated, as necessary, in this Form 10-Q. The year-end balance sheet data presented for comparative purposes was derived from audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three months ended March 31, 2022 and 2021 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Reclassifications </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain reclassifications were made to the prior condensed consolidated financial statements to conform to the current period presentation. There was no change to the previously reported net loss.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Risks Related to COVID-19 Pandemic</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies. While the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic could negatively impact the Company’s short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and the Company does not yet know the full extent of potential impacts on its business, financing or global economy as a whole. However, these effects could have a material impact on the Company’s liquidity, capital resources and operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Accounting Policies</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--UseOfEstimates_zphsD3yqHicl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_86E_z3GOINI6WZ06" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Use of Estimates</i></span><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">:</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--ConsolidationPolicyTextBlock_zJxKts6PTHEf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86C_zMx40OF25gA8">Principles of Consolidation</span></i>: The condensed consolidated financial statements include the accounts of QHSLab, Inc. and its wholly owned subsidiaries USAQ Corporation, Inc., and Medical Practice Income, Inc. All significant inter-company balances and transactions have been eliminated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zJ4p1Itlqpkd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_862_z1AnSu571Iw1">Cash and Cash Equivalents</span>:</i> For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--ReceivablesPolicyTextBlock_zUEyUDAdglN7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_869_zmGaY1Myan11">Accounts Receivable</span>:</i> The Company extends unsecured credit to its customers on a regular basis. Management monitors the payments on outstanding balances and will establish a reserve for uncollectible balances as necessary based on experience.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_847_eus-gaap--InventoryPolicyTextBlock_zIukZiT6FS83" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_86D_zotzT6vNbjmj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><i>Inventories</i></span><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">: </span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. The Company uses actual costs to determine its cost basis for inventories. Inventories consist of only finished goods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--ResearchDevelopmentAndComputerSoftwarePolicyTextBlock_zEUWiahdGMOl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_863_z0TAeqiFMVHh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Capitalized Software Development Costs</i></span><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">:</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Software development costs for internal-use software are accounted for in accordance with Accounting Standards Codification (“ASC”) 350-40, <i>Internal-Use Software</i>. Development costs that are incurred during the application development stage begin to be capitalized when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases once the software is substantially complete and ready for its intended use. Costs incurred during the preliminary project stage of software development and post-implementation operating stages are expensed as incurred. Amortization is calculated on a straight-line basis over the remaining economic life of the software (typically three to five years) and will be included in the operating expenses on the condensed consolidated Statements of Operations once amortization begins.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The estimated useful lives of software are reviewed at least annually and will be tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capitalized software development costs for internal-use software totaled $<span id="xdx_907_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_pp0p0_c20220331_zoBMhVuMSpsc" title="Capitalized software development costs for software sold to customers">223,390</span> as of March 31, 2022 and $<span id="xdx_908_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_pp0p0_c20211231_zilxoOo2Z8C2" title="Capitalized software development costs for software sold to customers">186,271</span> as of December 31, 2021. The software application is still in development with costs continuing to be capitalized and <span id="xdx_90E_eus-gaap--CapitalizedComputerSoftwareAmortization1_pp0p0_do_c20220101__20220331_z6oWE1nq0fG" title="Capitalized computer software, amortization"><span id="xdx_904_eus-gaap--CapitalizedComputerSoftwareAmortization1_pp0p0_do_c20210101__20211231_zRE2z2uThuP6" title="Capitalized computer software, amortization">no</span></span> amortization expense being recognized during the periods ended March 31, 2022 and December 31, 2021. There were <span id="xdx_90E_eus-gaap--CapitalizedComputerSoftwareImpairments1_pp0p0_do_c20220101__20220331_znHMwoR21ER5" title="Capitalized computer software, impairments"><span id="xdx_902_eus-gaap--CapitalizedComputerSoftwareImpairments1_pp0p0_do_c20210101__20211231_zm05twTlwZV3" title="Capitalized computer software, impairments">no</span></span> impairments recognized during the periods ended March 31, 2022 and December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Intangible Assets:</i> Intangible assets represent the value the Company paid to acquire assets including a trademark, patent and web domain on June 23, 2021. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, <i>Business Combination, Related Issues, Initial Measurement</i>. These assets are accounted for in accordance with ASC 350-30, <i>Intangibles, General Intangibles Other Than Goodwill</i>. The cost of the assets is amortized over the remaining useful life of the assets as follows:</span></p> <p id="xdx_89A_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_zWlickJl8lIh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8B8_zbjPhQUudZG2" style="display: none">Schedule of Indefinite-Lived Intangible Assets</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. Method Patent</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20220101__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zHxEmFIOfDP4" title="Finite-lived intangible assets, amortization method">13.4</span> years</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Web Domain</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90A_eus-gaap--ImpairedIntangibleAssetDescription_c20220101__20220331__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--WebDomainMember_z5IXdDHO6vS2" title="Impaired intangible asset">Indefinite life</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trademark</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ImpairedIntangibleAssetDescription_c20220101__20220331__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zpq8VzILfMxi" title="Impaired intangible asset">Indefinite life</span></span></td></tr> </table> <p id="xdx_8AE_zvd5JvyhtNZc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The estimated useful lives and carrying value of the assets are reviewed at least annually or whenever events or circumstances may result in an impact to the value of the assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Convertible Notes Payable:</i> The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, <i>Derivatives and Hedging</i>, in accordance with the provisions of ASC 470-20, <i>Debt with Conversion and Other Options</i>, which provides guidance on accounting for convertible securities with beneficial conversion features. ASC 470-20 addresses classification determination for specific obligations, such as short-term obligations expected to be refinanced on a long-term basis, due-on-demand loan arrangements, callable debt, sales of future revenue, increasing rate debt, debt that includes covenants, revolving credit agreements subject to lock-box arrangements and subjective acceleration clauses. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_843_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zn7W0yLxzbK9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_znLUwkMB3gGl">Revenue Recognition</span>:</i> <span style="background-color: white">Pursuant to ASC Topic 606, <i>Revenue from Contracts with Customers, </i>or ASC 606, the Company recognizes revenue upon transfer of control of goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. The Company does not allow for the return of products and therefore does not establish an allowance for returns.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">To determine the revenue to be recognized for transactions that the Company determines are within the scope of ASC 606, the Company follows the established five-step framework as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identify the contract(s) with a customer;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identify the performance obligations in the contract(s);</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">determine the transaction price;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iv)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">allocate the transaction price to the performance obligations in the contract(s); and</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(v)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">recognize revenue when (or as) the Company satisfies a performance obligation.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company sells </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">allergy diagnostic-related products and immunotherapy treatments to physicians. Revenue is recognized once the Company satisfies its performance obligation which occurs at the point in time when title and possession of products have transitioned to the customer, typically upon delivery of the products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company includes shipping and handling fees billed to customers in revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There are several practical expedients and exemptions allowed under ASC 606 that impact timing of revenue recognition and disclosures. The Company elected to treat similar contracts as a portfolio of contracts, as allowed under ASC 606. The contracts that fall within the portfolio have the same terms and management has the expectation that the result will not be materially different from the consideration of each individual contract.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--ResearchAndDevelopmentExpensePolicy_zkjiEJfEJH7l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_864_zsY4Ba988I2i">Research and Development</span>:</i> Research and development expense is primarily related to developing and improving methods related to the Company’s Software as a Service (SaaS) platform. Research and development expenses are expensed when incurred. <span style="background-color: white">For the three months ended March 31, 2022 and 2021, there were $<span id="xdx_90A_eus-gaap--ResearchAndDevelopmentExpense_c20220101__20220331_zO8MIc139bbj" title="Research and development expense">28,979</span> and $<span id="xdx_90C_eus-gaap--ResearchAndDevelopmentExpense_c20210101__20210331_zRjoG47Fm7kg" title="Research and development expense">28,021</span> of research and development expenses incurred, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_84D_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zHWb23k9EPt6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_zdm6bEh8L4Qh">Stock-based Compensation</span>: </i>The Company applies the fair value method of ASC 718, <i>Share Based Payment</i>, in accounting for its stock-based compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company’s common stock and other pertinent factors at the grant date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_zBECZQiOqD8c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zeJhMcuYvcmi">Earnings Per Common Share</span>:</i> Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options and warrants to purchase common stock (only if those options and warrants are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--CommonStockMember_zQuBiggEQMJ7" title="Common stock equivalent shares of weighted average shares outstanding dilutive"><span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--CommonStockMember_zurDzV0gsLe7" title="Common stock equivalent shares of weighted average shares outstanding dilutive">no</span></span> common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of March 31, 2022 or 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--IncomeTaxPolicyTextBlock_zXFkUdSmxyBj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86F_zGdezYmS8kz6">Income Taxes</span>:</i> The Company accounts for income taxes in accordance with ASC 740, <i>Accounting for Income Taxes,</i> which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has net operating losses of $<span id="xdx_901_eus-gaap--OperatingLossCarryforwards_iI_pp0p0_c20220331_zRtvgllMxE3c" title="Operating loss carryforwards">2,709,199</span> which <span id="xdx_907_ecustom--NetOperatingLossesCarryforwardsExpireDate_c20220101__20220331_zsyW2evgbGt1" title="Net operating losses carryforwards, expire date">begin to expire in 2027</span>. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_842_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zOE4wDoz6nYd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_865_z3Icr34Xslb3">Recently Issued Accounting Standards</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the Financial Accounts Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2020-06, <i>Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)</i>, or ASU 2020-06. The updated guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. Consequently, more convertible debt instruments will be reported as single liability instruments with no separate accounting for embedded conversion features. The ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. In addition, ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. The Company adopted the provisions of ASU 2020-06 using a modified retrospective approach, which resulted in no cumulative effect adjustment to stockholders’ deficit as of January 1, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have a current and/or future impact on or are unrelated to the Company’s financial condition, results of operations, cash flows or disclosures.</span></p> <p id="xdx_85A_z6pxej7i1vDi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="xdx_841_eus-gaap--UseOfEstimates_zphsD3yqHicl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_86E_z3GOINI6WZ06" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Use of Estimates</i></span><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">:</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84B_eus-gaap--ConsolidationPolicyTextBlock_zJxKts6PTHEf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86C_zMx40OF25gA8">Principles of Consolidation</span></i>: The condensed consolidated financial statements include the accounts of QHSLab, Inc. and its wholly owned subsidiaries USAQ Corporation, Inc., and Medical Practice Income, Inc. All significant inter-company balances and transactions have been eliminated.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_849_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_zJ4p1Itlqpkd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_862_z1AnSu571Iw1">Cash and Cash Equivalents</span>:</i> For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_841_eus-gaap--ReceivablesPolicyTextBlock_zUEyUDAdglN7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_869_zmGaY1Myan11">Accounts Receivable</span>:</i> The Company extends unsecured credit to its customers on a regular basis. Management monitors the payments on outstanding balances and will establish a reserve for uncollectible balances as necessary based on experience.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_847_eus-gaap--InventoryPolicyTextBlock_zIukZiT6FS83" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_86D_zotzT6vNbjmj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><i>Inventories</i></span><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">: </span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. The Company uses actual costs to determine its cost basis for inventories. Inventories consist of only finished goods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_840_eus-gaap--ResearchDevelopmentAndComputerSoftwarePolicyTextBlock_zEUWiahdGMOl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_863_z0TAeqiFMVHh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Capitalized Software Development Costs</i></span><i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">:</span></i><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Software development costs for internal-use software are accounted for in accordance with Accounting Standards Codification (“ASC”) 350-40, <i>Internal-Use Software</i>. Development costs that are incurred during the application development stage begin to be capitalized when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases once the software is substantially complete and ready for its intended use. Costs incurred during the preliminary project stage of software development and post-implementation operating stages are expensed as incurred. Amortization is calculated on a straight-line basis over the remaining economic life of the software (typically three to five years) and will be included in the operating expenses on the condensed consolidated Statements of Operations once amortization begins.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The estimated useful lives of software are reviewed at least annually and will be tested for impairment whenever events or changes in circumstances occur that could impact the recoverability of the assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capitalized software development costs for internal-use software totaled $<span id="xdx_907_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_pp0p0_c20220331_zoBMhVuMSpsc" title="Capitalized software development costs for software sold to customers">223,390</span> as of March 31, 2022 and $<span id="xdx_908_eus-gaap--CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers_iI_pp0p0_c20211231_zilxoOo2Z8C2" title="Capitalized software development costs for software sold to customers">186,271</span> as of December 31, 2021. The software application is still in development with costs continuing to be capitalized and <span id="xdx_90E_eus-gaap--CapitalizedComputerSoftwareAmortization1_pp0p0_do_c20220101__20220331_z6oWE1nq0fG" title="Capitalized computer software, amortization"><span id="xdx_904_eus-gaap--CapitalizedComputerSoftwareAmortization1_pp0p0_do_c20210101__20211231_zRE2z2uThuP6" title="Capitalized computer software, amortization">no</span></span> amortization expense being recognized during the periods ended March 31, 2022 and December 31, 2021. There were <span id="xdx_90E_eus-gaap--CapitalizedComputerSoftwareImpairments1_pp0p0_do_c20220101__20220331_znHMwoR21ER5" title="Capitalized computer software, impairments"><span id="xdx_902_eus-gaap--CapitalizedComputerSoftwareImpairments1_pp0p0_do_c20210101__20211231_zm05twTlwZV3" title="Capitalized computer software, impairments">no</span></span> impairments recognized during the periods ended March 31, 2022 and December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Intangible Assets:</i> Intangible assets represent the value the Company paid to acquire assets including a trademark, patent and web domain on June 23, 2021. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, <i>Business Combination, Related Issues, Initial Measurement</i>. These assets are accounted for in accordance with ASC 350-30, <i>Intangibles, General Intangibles Other Than Goodwill</i>. The cost of the assets is amortized over the remaining useful life of the assets as follows:</span></p> <p id="xdx_89A_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_zWlickJl8lIh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8B8_zbjPhQUudZG2" style="display: none">Schedule of Indefinite-Lived Intangible Assets</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. Method Patent</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20220101__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zHxEmFIOfDP4" title="Finite-lived intangible assets, amortization method">13.4</span> years</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Web Domain</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90A_eus-gaap--ImpairedIntangibleAssetDescription_c20220101__20220331__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--WebDomainMember_z5IXdDHO6vS2" title="Impaired intangible asset">Indefinite life</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trademark</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ImpairedIntangibleAssetDescription_c20220101__20220331__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zpq8VzILfMxi" title="Impaired intangible asset">Indefinite life</span></span></td></tr> </table> <p id="xdx_8AE_zvd5JvyhtNZc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The estimated useful lives and carrying value of the assets are reviewed at least annually or whenever events or circumstances may result in an impact to the value of the assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Convertible Notes Payable:</i> The Company accounts for convertible notes deemed conventional and conversion options embedded in non-conventional convertible notes which qualify as equity under ASC 815, <i>Derivatives and Hedging</i>, in accordance with the provisions of ASC 470-20, <i>Debt with Conversion and Other Options</i>, which provides guidance on accounting for convertible securities with beneficial conversion features. ASC 470-20 addresses classification determination for specific obligations, such as short-term obligations expected to be refinanced on a long-term basis, due-on-demand loan arrangements, callable debt, sales of future revenue, increasing rate debt, debt that includes covenants, revolving credit agreements subject to lock-box arrangements and subjective acceleration clauses. Accordingly, the Company records, as a discount to convertible notes, the intrinsic value of such conversion options based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 223390 186271 0 0 0 0 <p id="xdx_89A_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_zWlickJl8lIh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span style="display: none"><span id="xdx_8B8_zbjPhQUudZG2" style="display: none">Schedule of Indefinite-Lived Intangible Assets</span></span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 20%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. Method Patent</span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 80%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_900_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20220101__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zHxEmFIOfDP4" title="Finite-lived intangible assets, amortization method">13.4</span> years</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Web Domain</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90A_eus-gaap--ImpairedIntangibleAssetDescription_c20220101__20220331__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--WebDomainMember_z5IXdDHO6vS2" title="Impaired intangible asset">Indefinite life</span></span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trademark</span></td> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ImpairedIntangibleAssetDescription_c20220101__20220331__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zpq8VzILfMxi" title="Impaired intangible asset">Indefinite life</span></span></td></tr> </table> P13Y4M24D Indefinite life Indefinite life <p id="xdx_843_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zn7W0yLxzbK9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_znLUwkMB3gGl">Revenue Recognition</span>:</i> <span style="background-color: white">Pursuant to ASC Topic 606, <i>Revenue from Contracts with Customers, </i>or ASC 606, the Company recognizes revenue upon transfer of control of goods, in an amount that reflects the consideration that is expected to be received in exchange for those goods. The Company does not allow for the return of products and therefore does not establish an allowance for returns.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">To determine the revenue to be recognized for transactions that the Company determines are within the scope of ASC 606, the Company follows the established five-step framework as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identify the contract(s) with a customer;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">identify the performance obligations in the contract(s);</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">determine the transaction price;</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iv)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">allocate the transaction price to the performance obligations in the contract(s); and</span></td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; white-space: nowrap"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(v)</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">recognize revenue when (or as) the Company satisfies a performance obligation.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The Company sells </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">allergy diagnostic-related products and immunotherapy treatments to physicians. Revenue is recognized once the Company satisfies its performance obligation which occurs at the point in time when title and possession of products have transitioned to the customer, typically upon delivery of the products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company includes shipping and handling fees billed to customers in revenue.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There are several practical expedients and exemptions allowed under ASC 606 that impact timing of revenue recognition and disclosures. The Company elected to treat similar contracts as a portfolio of contracts, as allowed under ASC 606. The contracts that fall within the portfolio have the same terms and management has the expectation that the result will not be materially different from the consideration of each individual contract.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_84C_eus-gaap--ResearchAndDevelopmentExpensePolicy_zkjiEJfEJH7l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_864_zsY4Ba988I2i">Research and Development</span>:</i> Research and development expense is primarily related to developing and improving methods related to the Company’s Software as a Service (SaaS) platform. Research and development expenses are expensed when incurred. <span style="background-color: white">For the three months ended March 31, 2022 and 2021, there were $<span id="xdx_90A_eus-gaap--ResearchAndDevelopmentExpense_c20220101__20220331_zO8MIc139bbj" title="Research and development expense">28,979</span> and $<span id="xdx_90C_eus-gaap--ResearchAndDevelopmentExpense_c20210101__20210331_zRjoG47Fm7kg" title="Research and development expense">28,021</span> of research and development expenses incurred, respectively.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> 28979 28021 <p id="xdx_84D_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zHWb23k9EPt6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_866_zdm6bEh8L4Qh">Stock-based Compensation</span>: </i>The Company applies the fair value method of ASC 718, <i>Share Based Payment</i>, in accounting for its stock-based compensation. The standard states that compensation cost is measured at the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The Company values stock-based compensation at the market price for the Company’s common stock and other pertinent factors at the grant date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p id="xdx_847_eus-gaap--EarningsPerSharePolicyTextBlock_zBECZQiOqD8c" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zeJhMcuYvcmi">Earnings Per Common Share</span>:</i> Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options and warrants to purchase common stock (only if those options and warrants are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of issued and outstanding preferred stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. There were <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20220101__20220331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--CommonStockMember_zQuBiggEQMJ7" title="Common stock equivalent shares of weighted average shares outstanding dilutive"><span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_do_c20210101__20211231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--CommonStockMember_zurDzV0gsLe7" title="Common stock equivalent shares of weighted average shares outstanding dilutive">no</span></span> common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding as of March 31, 2022 or 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 0 0 <p id="xdx_842_eus-gaap--IncomeTaxPolicyTextBlock_zXFkUdSmxyBj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86F_zGdezYmS8kz6">Income Taxes</span>:</i> The Company accounts for income taxes in accordance with ASC 740, <i>Accounting for Income Taxes,</i> which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has net operating losses of $<span id="xdx_901_eus-gaap--OperatingLossCarryforwards_iI_pp0p0_c20220331_zRtvgllMxE3c" title="Operating loss carryforwards">2,709,199</span> which <span id="xdx_907_ecustom--NetOperatingLossesCarryforwardsExpireDate_c20220101__20220331_zsyW2evgbGt1" title="Net operating losses carryforwards, expire date">begin to expire in 2027</span>. Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations. The annual limitation may result in the expiration of NOL and tax credit carry-forwards before full utilization.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 2709199 begin to expire in 2027 <p id="xdx_842_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zOE4wDoz6nYd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_865_z3Icr34Xslb3">Recently Issued Accounting Standards</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In August 2020, the Financial Accounts Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2020-06, <i>Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40)</i>, or ASU 2020-06. The updated guidance is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. Consequently, more convertible debt instruments will be reported as single liability instruments with no separate accounting for embedded conversion features. The ASU 2020-06 also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exception. In addition, ASU 2020-06 also simplifies the diluted net income per share calculation in certain areas. The Company adopted the provisions of ASU 2020-06 using a modified retrospective approach, which resulted in no cumulative effect adjustment to stockholders’ deficit as of January 1, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have a current and/or future impact on or are unrelated to the Company’s financial condition, results of operations, cash flows or disclosures.</span></p> <p id="xdx_807_eus-gaap--ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock_zKxVmxCMAm33" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 4. <span id="xdx_828_zbdzYFZltAW5">Capitalized Software and Intangible Assets</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zUYZf5vbO4d2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-current assets consist of the following at March 31, 2022 and December 31, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zuyyjKxnCEhb" style="display: none">Schedule of Intangible Assets</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Estimated Useful Life <br/> (in years)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220331_zkeZ0ar5WsN" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br/>2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20211231_zYSIg8pK52i1" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, <br/> 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zAvkkQiYPFh6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; text-align: left">Capitalized Software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">TBD</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">223,390</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">186,271</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsNetAbstract_iB_zjy5ZQnfaqOf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Intangible Assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zzolEwWHCPh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. Method Patent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20220101__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zRhbZXTDsqEk" title="Finite-lived intangible assets, amortization method">13.4</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">967,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">967,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--WebDomainMember_zyL3eCSkiaDi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Web Domain</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,250</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zWSIjmwepfdc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Trademark</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">483,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">483,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_maFLIANzGJu_z0lxBWGNjHPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Intangible Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,612,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,612,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_di_msFLIANzGJu_zsAxmlV3g5gl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(54,084</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(36,056</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzGJu_zbl5Rx8o20Rj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Intangible assets, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,558,416</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,576,444</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AC_zSoLkvYHCCj5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capitalized software represents the development costs for internal-use software. The software application is still in development with costs continuing to be capitalized and no amortization expense being recognized yet. Capitalization will cease and amortization will begin once development is substantially complete. The Capitalized software costs will be amortized over the estimated life of the software. There were <span id="xdx_904_eus-gaap--CapitalizedComputerSoftwareImpairments1_pp0p0_do_c20210101__20211231_zCtGZi3jibbc" title="Capitalized computer software, impairments"><span id="xdx_906_eus-gaap--CapitalizedComputerSoftwareImpairments1_pp0p0_do_c20220101__20220331_zHuSOM79jS3c" title="Capitalized computer software, impairments">no</span></span> impairments recognized during the periods ended March 31, 2022 and December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The intangible assets represent the value the Company paid to acquire the trademark “AllergiEnd”, the web domain “AllergiEnd.com” along with the U.S. Method Patent registration relating to the allergy testing kit and related materials the Company distributes to physician clients. The Company acquired the intangible assets from MedScience Research Group as of June 23, 2021 for total consideration of $<span id="xdx_90A_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20210622__20210623_z1VQopINMo6" title="Acquired intangible assets">1,612,500</span> which was financed through a combination of restricted stock and a promissory note. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, <i>Business Combination, Related Issues, Initial Measurement. </i>The assets are being amortized over their useful lives beginning July 1, 2021. The Trademark and Web Domain are determined to have an indefinite life and will be tested annually for impairment in accordance with ASC 350-30-35, <i>Intangibles, General Intangibles Other Than Goodwill</i>. There was $<span id="xdx_90D_eus-gaap--DepreciationAndAmortization_pp0p0_c20220101__20220331_zcYn0FGMRA6" title="Amortization expense">18,028</span> of amortization expense during the quarter ended March 31, 2022 and <span id="xdx_909_eus-gaap--DepreciationAndAmortization_pp0p0_doxL_c20210101__20210331_zmmbG0S8qDo" title="Amortization expense::XDX::-"><span style="-sec-ix-hidden: xdx2ixbrl0571">no</span></span> amortization expense during the quarter ended March 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_zUYZf5vbO4d2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-current assets consist of the following at March 31, 2022 and December 31, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B2_zuyyjKxnCEhb" style="display: none">Schedule of Intangible Assets</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Estimated Useful Life <br/> (in years)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220331_zkeZ0ar5WsN" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br/>2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20211231_zYSIg8pK52i1" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, <br/> 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--ComputerSoftwareIntangibleAssetMember_zAvkkQiYPFh6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; text-align: left">Capitalized Software</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">TBD</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">223,390</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">186,271</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsNetAbstract_iB_zjy5ZQnfaqOf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Intangible Assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zzolEwWHCPh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. Method Patent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetsRemainingAmortizationPeriod1_dtY_c20220101__20220331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--PatentsMember_zRhbZXTDsqEk" title="Finite-lived intangible assets, amortization method">13.4</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">967,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">967,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--WebDomainMember_zyL3eCSkiaDi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Web Domain</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">161,250</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zWSIjmwepfdc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Trademark</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">483,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">483,750</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_maFLIANzGJu_z0lxBWGNjHPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Intangible Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,612,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,612,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iNI_di_msFLIANzGJu_zsAxmlV3g5gl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1.5pt">Accumulated amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(54,084</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(36,056</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--FiniteLivedIntangibleAssetsNet_iTI_mtFLIANzGJu_zbl5Rx8o20Rj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Intangible assets, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,558,416</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,576,444</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> 223390 186271 P13Y4M24D 967500 967500 161250 161250 483750 483750 1612500 1612500 54084 36056 1558416 1576444 0 0 1612500 18028 <p id="xdx_803_ecustom--LoansPayableTextBlock_zyC5c6mmuxW6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 5. <span id="xdx_82A_zZ2QoWDBcY0j">Loans Payable</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On June 23, 2021, the Company entered into a purchase agreement to acquire certain assets from MedScience Research Group, Inc (“MedScience”) (See Note 4 for additional information). As part of that purchase agreement, the Company issued a Promissory Note with a principal sum of $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20210623__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_z9DC1JcRlEd5" title="Debt instrument face amount">750,000</span>. The principal, along with associated interest, are being paid in 36 equal monthly installments that began in July 2021. The principal balance of the loan is divided between current and long-term liabilities on the Company’s condensed consolidated balance sheets. The combined principal due along with accrued interest as of March 31, 2022 is $<span id="xdx_909_eus-gaap--DebtDefaultLongtermDebtAmount_iI_c20220331_zawYnIDj6Bj7" title="Debt default longterm debt amount">586,716</span> and as of December 31, 2021 was $<span id="xdx_908_eus-gaap--DebtDefaultLongtermDebtAmount_iI_c20211231_z4NWByqWi3ud" title="Debt default longterm debt amount">644,158</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On March 2, 2022, the Company entered into a fixed-fee short-term loan with its merchant bank and received $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfDebt_pp0p0_c20220301__20220302_z2YFHe1xADI9">128,500 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">in loan proceeds. </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The loan payable, which is split between current and long-term liabilities on the Company’s condensed consolidated balance sheets, is due in August 2023. The loan is repaid by the merchant bank withholding an agreed-upon percentage of payments they process on behalf of the Company with a minimum of $<span id="xdx_90A_eus-gaap--PaymentsForLoans_c20220301__20220302_z5DuXcw1bMbb" title="Payments for loan">16,305</span> paid every 60 days. As of March 31, 2022, the loan balance is $<span id="xdx_901_eus-gaap--LoansPayable_iI_c20220331_zCZIjVYfBybk">117,117</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. The prior <span style="background-color: white">fixed-fee short-term loan with the same merchant bank had a balance of $<span id="xdx_90D_eus-gaap--LoansPayable_iI_c20211231__us-gaap--CreditFacilityAxis__custom--MerchantBankMember_z5IXSIdoPUng" title="Loan payable">16,793</span> as of December 31, 2021 and was paid in full during the first quarter 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> 750000 586716 644158 128500 16305 117117 16793 <p id="xdx_808_eus-gaap--DebtDisclosureTextBlock_zgaFLvS1mF42" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 6. <span id="xdx_82A_za5mZcg96XJa">Convertible Notes Payable</span> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_891_eus-gaap--ConvertibleDebtTableTextBlock_zYBPQbGNXeGa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Convertible notes payable at March 31, 2022 and December 31, 2021, consist of the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_zGMqoVefdZk6" style="display: none">Schedule of Convertible Notes Payable</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20220331_zPW2l7ytJLD" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br/> 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20211231_zLNCrCE7lwSh" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, <br/> 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--ConvertibleNotesPayable_iI_hus-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zJyJ181uaYE" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Note 1 – Accredited investors</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0591">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">25,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--ConvertibleNotesPayable_iI_hus-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zI5yMpD9HAvb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Note 2 – Shareholder</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ConvertibleNotesPayable_iI_hus-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableThreeMember__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zPPTbA8K81q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Note 3 – Mercer Note</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">756,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">756,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ConvertibleNotesPayable_iI_maCNPDDzvES_zAA8p3V8Qrlf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"/><td style="padding-bottom: 1.5pt; text-align: right">856,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"/><td style="padding-bottom: 1.5pt; text-align: right">881,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredFinanceCostsNet_iNI_di_msCNPDDzvES_z09UfBlaAXcj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: left">Debt discount and issuance costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"/><td style="border-bottom: Black 1.5pt solid; text-align: right">(142,046</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"/><td style="border-bottom: Black 1.5pt solid; text-align: right">(238,896</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--ConvertibleNotesPayableDebtDiscountAndIssuanceCosts_iI_mtCNPDDzvES_zTDIVoRianCh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total convertible notes payable</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right">713,954</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right">642,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--ConvertibleNotesPayableCurrent_iI_zHrIGMXv8ePe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: current portion</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">613,954</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">542,104</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--ConvertibleLongTermNotesPayable_iI_zFpRnt3WXp49" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Non-current portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A5_zTyW7I7Idsj8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note 1 – Effective December 23, 2020, the Company issued a Convertible Promissory Note in the principal amount of $<span id="xdx_90D_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20201223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zB7HrVusY5hh">25,000 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">to a shareholder (Note 1). This Note was issued under a subscription agreement dated <span id="xdx_90F_eus-gaap--DebtInstrumentMaturityDate_dd_c20201222__20201223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_ztdPvDtsDrIh">September 25, 2020</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. As of March 31, 2022 and December 31, 2021, this note had $<span id="xdx_903_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20220331__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_z1lhTblsWgAc">0 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_90F_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20211231__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_ziZ11PKwveZ5">2,555</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, of accrued interest. <span style="background-color: white">On February 23, 2022 the shareholder </span>elected to convert <span style="background-color: white">the outstanding principal of $<span id="xdx_905_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20220223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zyygYjws2NNh">25,000 </span></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">along with accrued interest into <span id="xdx_904_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20220223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zbWs1VnA1zN2">59,415 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">shares of common stock at a price of $<span id="xdx_90F_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pip0_c20220223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zSQGYzlTW7f">0.47 per share</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">. </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Additionally, the shareholder received warrants exercisable for two years to purchase <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pp0p0_c20220223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zIzIkrwfV4j9">14,854 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">common shares at $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pip0_c20220223__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zid8fJFWAyOb">0.705 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">per share.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note 2 – Effective May 7, 2021, the Company issued a Convertible Promissory Note in the principal amount of $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_c20210507__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zjFYE9yomDsh">100,000 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">to a shareholder (Note 2). The Note bears interest at the rate of <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20210507__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zchzvqexeMB5">10</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">% per annum and matures on <span id="xdx_904_eus-gaap--DebtInstrumentMaturityDate_dd_c20210501__20210507__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zFNUerg3SUn6">September 30, 2022</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(the “Maturity Date”) at which date all outstanding principal and accrued and unpaid interest are due and payable. <span id="xdx_904_eus-gaap--DebtInstrumentDescription_c20210501__20210507__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zAMWX0dMzshd">The Company may satisfy the Note upon maturity or Default, as defined, by the issuance of common shares at a conversion price equal to the greater of a 25% discount to the 15-day average market price of the Company’s common stock or $0.50. The principal and interest accrued are convertible at any time through the maturity date of September 30, 2022 at the option of the holder using the same conversion calculation</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. As of March 31, 2022 and December 31, 2021, this note had $<span id="xdx_900_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20220331__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zobKMiv3o0ac">8,986 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and $<span id="xdx_906_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20211231__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zmTqMy69IYWl">6,521</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, respectively, of accrued interest.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Note 3 – Effective August 10, 2021, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which it issued to the investor an Original Issue Discount Secured Convertible Promissory Note (the “Note”) in the principal amount of $<span id="xdx_906_eus-gaap--DebtInstrumentFaceAmount_iI_pp0p0_c20210810__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableThreeMember__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zDMVzWJkxnYi" title="Debt instrument, principal amount">806,000</span> and warrants to purchase <span id="xdx_901_ecustom--WarrantsIssuedToPurchaseOfCommonStock_iI_pp0p0_c20210810__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableThreeMember__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zUlFz3fL7Czg" title="Warrants to purchase common stock">930,000</span> shares of the Company’s common stock for aggregate consideration of $<span id="xdx_907_eus-gaap--ProceedsFromWarrantExercises_pp0p0_c20210801__20210810__us-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableThreeMember__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zMrbasIbvR58">750,000</span>. In addition, pursuant to the Purchase Agreement the Company entered into a Registration Rights Agreement with the investor.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The principal amount of the Note and all interest accrued thereon is payable on August 10, 2022, and are secured by a lien on substantially all of the Company’s assets. The Note provides for interest at the rate of <span id="xdx_90E_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20220810__us-gaap--LongtermDebtTypeAxis__custom--ConvertiblePromissoryNoteTenMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zqWG3oBy3IMh" title="Debt instrument interest rate stated percentage">5</span>% per annum, payable at maturity, and is convertible into common stock at a price of $<span id="xdx_904_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20220810__us-gaap--LongtermDebtTypeAxis__custom--ConvertiblePromissoryNoteTenMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z5GePC2nutSi" title="Debt instrument convertible conversion price1">0.65</span> per share. In addition to customary anti-dilution adjustments upon the occurrence of certain corporate events, the Note provides, subject to certain limited exceptions, that if we issue any common stock or common stock equivalents, as defined in the Note, at a per share price lower than the conversion price then in effect, the conversion price will be reduced to the per share price at which such stock or common stock equivalents were sold. The conversion price of the Note had been subject to a potential decrease if the average closing price of the Company’s common stock during any ten consecutive trading days beginning September 16, 2021, and ending on November 15, 2021, was below $<span id="xdx_90E_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20211115__us-gaap--LongtermDebtTypeAxis__custom--ConvertiblePromissoryNoteTenMember_zzRbrWtR6tZe" title="Debt instrument convertible conversion price1">0.65</span>. As the trading price of the common stock has not been below $<span id="xdx_900_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20210921__us-gaap--LongtermDebtTypeAxis__custom--ConvertiblePromissoryNoteTenMember_zXLYHVCup0Zg">0.65</span> since September 21, 2021, this provision is no longer operative.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On November 11, 2021,</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"> Mercer Street Global Opportunity Fund, LLC, converted $<span id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueConversionOfConvertibleSecurities_c20211109__20211111__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_z4IYhWM4QyH5">50,000 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">of the principal amount of the $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_c20211111__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zb0GbLooWS31">806,000 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Secured Convertible Promissory Note issued August 10, 2021, into <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_c20211109__20211111__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_ztzdAq8HTRpc">76,923 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">shares of the Company’s common stock at a price of $<span id="xdx_90C_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_pid_c20211111__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zbJISTY20xz9">0.65 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">per share. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20211111__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_z10ozauVEkoe">930,000 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants are initially exercisable for a period of three years at a price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20211111__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_z48oq8Jiktse">1.25 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">per share, subject to customary anti-dilution adjustments upon the occurrence of certain corporate events as set forth in the Warrant. The shares issuable upon conversion of the Note and exercise of the Warrants are to be registered under the Securities Act of 1933, as amended, for resale by the investor as provided in the Registration Rights Agreement. The Warrants may be exercised by means of a “cashless exercise” if at any time the shares issuable upon exercise of the Warrant are not covered by an effective registration statement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company accounts for the allocation of its issuance costs to its Warrants in accordance with ASC 470-20, <i>Debt with Conversion and Other Options</i>. Under this guidance, if debt or stock is issued with detachable warrants, the proceeds need to be allocated to the two instruments using either the fair value method, the relative fair value method, or the residual value method. The Company used the relative fair value at the time of issuance to allocate the value received between the convertible note and the warrants.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company estimated the fair value of the Warrants utilizing the Black-Scholes pricing model, which is dependent upon several assumptions such as the expected term of the Warrants, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected term and expected dividend yield rate over the expected term. The Company believes this valuation methodology is appropriate for estimating the fair value of warrants. The value allocated to the relative fair value of the Warrants was recorded as debt issuance costs and additional paid in capital.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The principal, net of the original issue discount and debt issuance costs, including the allocated relative fair value of the Warrants, which are being recognized over the life of the Note, along with associated interest, is recorded with current liabilities on the Company’s condensed consolidated balance sheets. As of March 31, 2022, this Note had $<span id="xdx_907_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20220331_zyNUHvNzQuNa">24,767 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of accrued interest, total unamortized debt issuance costs of $<span id="xdx_908_eus-gaap--DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet_iI_c20220331_z2jCLBJRTl78">121,794</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, including the Warrant value, and the remaining discount of $<span id="xdx_90E_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20220331_zFGU9bUS3ks5">20,252</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">. As of December 31, 2021, this note had $<span id="xdx_909_eus-gaap--InterestPayableCurrent_iI_pp0p0_c20211231_zzrW9xGFgx56">15,446</span></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of accrued interest, total unamortized debt issuance costs of $<span id="xdx_904_eus-gaap--DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet_iI_c20211231_zwYMYkJ3wFFk">204,835</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">, including the Warrant value, and the remaining discount of $<span id="xdx_90E_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20211231_zj9V4WvPVypg">34,060</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_891_eus-gaap--ConvertibleDebtTableTextBlock_zYBPQbGNXeGa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Convertible notes payable at March 31, 2022 and December 31, 2021, consist of the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8B8_zGMqoVefdZk6" style="display: none">Schedule of Convertible Notes Payable</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20220331_zPW2l7ytJLD" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, <br/> 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20211231_zLNCrCE7lwSh" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, <br/> 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--ConvertibleNotesPayable_iI_hus-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableOneMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AccreditedInvestorMember_zJyJ181uaYE" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Note 1 – Accredited investors</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0591">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">25,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--ConvertibleNotesPayable_iI_hus-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableTwoMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ShareholderMember_zI5yMpD9HAvb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Note 2 – Shareholder</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ConvertibleNotesPayable_iI_hus-gaap--ShortTermDebtTypeAxis__custom--ConvertibleNotesPayableThreeMember__dei--LegalEntityAxis__custom--MercerStreetGlobalOpportunityFundLLCMember_zPPTbA8K81q3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Note 3 – Mercer Note</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">756,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">756,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ConvertibleNotesPayable_iI_maCNPDDzvES_zAA8p3V8Qrlf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"/><td style="padding-bottom: 1.5pt; text-align: right">856,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"/><td style="padding-bottom: 1.5pt; text-align: right">881,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredFinanceCostsNet_iNI_di_msCNPDDzvES_z09UfBlaAXcj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: left">Debt discount and issuance costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"/><td style="border-bottom: Black 1.5pt solid; text-align: right">(142,046</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"/><td style="border-bottom: Black 1.5pt solid; text-align: right">(238,896</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--ConvertibleNotesPayableDebtDiscountAndIssuanceCosts_iI_mtCNPDDzvES_zTDIVoRianCh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total convertible notes payable</span></td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right">713,954</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: right">642,104</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--ConvertibleNotesPayableCurrent_iI_zHrIGMXv8ePe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less: current portion</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">613,954</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">542,104</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--ConvertibleLongTermNotesPayable_iI_zFpRnt3WXp49" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Non-current portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">100,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 25000 100000 100000 756000 756000 856000 881000 142046 238896 713954 642104 613954 542104 100000 100000 25000 2020-09-25 0 2555 25000 59415 0.47 14854 0.705 100000 0.10 2022-09-30 The Company may satisfy the Note upon maturity or Default, as defined, by the issuance of common shares at a conversion price equal to the greater of a 25% discount to the 15-day average market price of the Company’s common stock or $0.50. The principal and interest accrued are convertible at any time through the maturity date of September 30, 2022 at the option of the holder using the same conversion calculation 8986 6521 806000 930000 750000 0.05 0.65 0.65 0.65 50000 806000 76923 0.65 930000 1.25 24767 121794 20252 15446 204835 34060 <p id="xdx_806_eus-gaap--PreferredStockTextBlock_zKjoXsQ995td" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 7. <span id="xdx_82F_zg9okDL7ozzg">Preferred Stock</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Series A Preferred Stock</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The shares of Series A Preferred Stock have a stated value of $<span id="xdx_90D_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20190901__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zTX59FRystlg" title="Preferred stock stated value">0.25</span> per share and are initially convertible into shares of common stock at a price of $<span id="xdx_90A_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_c20190901__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zHRlL2O3EU2f" title="Debt instrument, conversion price">0.05</span> per share (subject to adjustment upon the occurrence of certain events). <span id="xdx_90C_eus-gaap--PreferredStockVotingRights_c20190831__20190901__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_z7Metr6HX6hf" title="Preferred stock voting rights description">The Series A Preferred Stock does not accrue dividends and ranks prior to the common stock upon a liquidation of the Company. The Series A Preferred Stock votes on all matters brought before the shareholders together with the Common stock as a single class and each share of Series A Preferred Stock has a number of votes, initially 5, equal to the number of shares of preferred stock into which it is convertible as of the record date for any vote.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Series A-2 Preferred Stock</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 30, 2021, the Company issued <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20211229__20211230__us-gaap--StatementClassOfStockAxis__custom--SeriesA2ConvertiblePreferredSharesMember_zEEKQOrLSAIh">2,644,424 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of the Company’s Series A-2 Convertible Preferred Shares to its principal shareholder in satisfaction of multiple outstanding convertible promissory notes with initial principal amounts totaling $<span id="xdx_903_eus-gaap--DebtInstrumentFaceAmount_iI_c20211230__us-gaap--StatementClassOfStockAxis__custom--SeriesA2ConvertiblePreferredSharesMember_zPQTZmPCEEql">286,078 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">together with all interest accrued thereon.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The rights of holders of the Company’s common stock with respect to the payment of dividends and upon liquidation are junior in right of payment to holders of the Series A-2 Convertible Preferred Shares. The rights of the holders of the Company’s Series A-2 Preferred Shares are pari passu to the rights of the holders of the Company’s Series A Preferred Shares currently outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holders of the Series A-2 Convertible Preferred Stock will vote on an as converted basis with the holders of the Company’s common stock and Series A Preferred Shares as to all matters to be voted on by the holders of the common stock. Each Series A-2 Preferred Share shall be entitled to a number of votes equal to five times the number of shares of common stock into which it is then convertible on the applicable record date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> 0.25 0.05 The Series A Preferred Stock does not accrue dividends and ranks prior to the common stock upon a liquidation of the Company. The Series A Preferred Stock votes on all matters brought before the shareholders together with the Common stock as a single class and each share of Series A Preferred Stock has a number of votes, initially 5, equal to the number of shares of preferred stock into which it is convertible as of the record date for any vote. 2644424 286078 <p id="xdx_805_eus-gaap--EarningsPerShareTextBlock_zpOVJDmRF375" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 8. <span id="xdx_82A_zUkyprD8Zi9d">Loss Per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company calculates net loss per common share in accordance with ASC 260, Earnings Per Share. Basic and diluted net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average number of common shares outstanding during the period. The Company’s potentially dilutive shares, which include shares issuable upon exercise or conversion of outstanding common stock options, common stock warrants, and convertible debt have not been included in the computation of diluted net loss per share for the quarters ended March 31, 2022 and 2021 as the result would be anti-dilutive.</span></p> <p id="xdx_892_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z95Ywy7U4bQ3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"><span id="xdx_8BC_z2lUg2hZiyv4" style="display: none">Schedule of Anti-dilutive Securities Excluded From Calculation of Earning Per Share</span></span> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: justify"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20220101__20220331_zAyGWMv8wk0e" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2022</td><td style="display: none; padding-bottom: 1.5pt"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20210101__20210331_zmA8AGsKH1m2" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2021</td><td style="display: none; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zRHfgT87s0s9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Stock options</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,100,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">650,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockWarrantMember_zBK0r38l7iJ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Stock warrants</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,026,647</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0672"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_z3ur1oo6CT7k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Total shares excluded from calculation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,126,647</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">650,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A8_z3LI9Vg6ZqN2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p> <p id="xdx_892_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z95Ywy7U4bQ3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="display: none"><span id="xdx_8BC_z2lUg2hZiyv4" style="display: none">Schedule of Anti-dilutive Securities Excluded From Calculation of Earning Per Share</span></span> </span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: justify"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20220101__20220331_zAyGWMv8wk0e" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2022</td><td style="display: none; padding-bottom: 1.5pt"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20210101__20210331_zmA8AGsKH1m2" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2021</td><td style="display: none; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockOptionsMember_zRHfgT87s0s9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Stock options</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,100,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">650,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--StockWarrantMember_zBK0r38l7iJ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Stock warrants</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,026,647</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0672"> </span></td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_z3ur1oo6CT7k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Total shares excluded from calculation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,126,647</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">650,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> 1100000 650000 1026647 2126647 650000 <p id="xdx_80D_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zzmLrrm62tl7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 9. <span id="xdx_82A_zyQ7vzJDqUhd">Stock-based Compensation</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three-month periods ended March 31, 2022 and 2021, there was $<span id="xdx_906_eus-gaap--ShareBasedCompensation_pp0p0_c20210101__20210331_zrqqSTyASQv5">8,920 </span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">in stock-based compensation associated with stock options included in Research and development expense. Additionally, during the same periods there was expense associated with shares issued for services. The following table shows how the expenses associated with shares issued for services were classified in the condensed consolidated statements of operations during the respective periods.</span></p> <p id="xdx_89E_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_zlAuBQuhfrr2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B1_z9vLyJAyUBfg" style="display: none">Schedule of Stock-based Compensation Expenses</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: justify"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220331_zJDoZQuJaxff" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2022</td><td style="display: none; padding-bottom: 1.5pt"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20210101__20210331_zS2ciyQg9v03" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2021</td><td style="display: none; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_407_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zotvqUcmaFnf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Research and development</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0682">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">21,625</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_z2OGfl69LHH1" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Sales and marketing</td><td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0685"> </span></td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,187</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zyjTDESDHh9e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">General and administrative</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,484</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">17,581</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AllocatedShareBasedCompensationExpense_zqyLknur0Lje" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Total expense – shares issued for services</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,484</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">68,393</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A8_zqMo4UNcPil" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During the three months ended March 31, 2021 there were <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210331__srt--TitleOfIndividualAxis__custom--ScientificAdvisorsMember_zb7eRVjERh4j" title="Number of options granted">450,000</span> options granted to certain scientific and business advisors (“Advisors”) with a weighted-average exercise price of $<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__srt--TitleOfIndividualAxis__custom--ScientificAdvisorsMember_ztX72MWpB2y3" title="Weighted-average exercise price">0.65</span>. The options vest in equal annual installments over <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dc_c20210101__20210331__srt--TitleOfIndividualAxis__custom--ScientificAdvisorsMember_zBLyIRCFmgl" title="Options vesting term">three years</span> beginning in April 2021 and expire <span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod_dc_c20210101__20210331__srt--TitleOfIndividualAxis__custom--ScientificAdvisorsMember_zMCj9a5fE4Vi" title="Options expiration period">five years</span> after grant date. There were no options exercised, forfeited or cancelled during the period. <span style="background-color: white">During the three months ended March 31, 2022 there were no options granted.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of March 31, 2022, there was $<span id="xdx_903_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pp0p0_c20220331_zR4NvhACo1e9" title="Unrecognized compensation related to unvested options">27,164</span> of unrecognized compensation related to <span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iI_pid_c20220331_z4kNSO7G9hTe" title="Unrecognized compensation related to unvested options, shares">1,100,000</span> outstanding options which is expected to be recognized over a weighted-average period of <span id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtM_c20220101__20220331_zHBZ9im07fH1" title="Recognized weighted-average period">11</span> months. The options are being expensed over the vesting period for each Advisor. The weighted-average grant date fair value for options granted during the three months ended March 31, 2021 was $<span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_c20210101__20210331_zeqlVhnmP3h1" title="Weighted-average fair value for options granted">0.12</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zf7dls4KSRjk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of all options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B1_zodnNorjucOc" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Fair Value of Option Grant of Weighted-average Assumptions</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended <br/> March 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended <br/> March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: center"> </td><td style="width: 16%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20210101__20210331_zMpJLnayXwS3" style="width: 16%; text-align: right" title="Risk-free interest rate">0.21</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of the options</td><td> </td> <td style="text-align: center"> </td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20210331_ziyuFbYzwoA1" title="Expected life of the options">3.5</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility of the underlying stock</td><td> </td> <td style="text-align: center"> </td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20210101__20210331_zK9N31VszLR4" style="text-align: right" title="Expected volatility of the underlying stock">76.3</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend rate</td><td> </td> <td style="text-align: center"> </td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20210101__20210331_zKQhTujRQ1f3" style="text-align: right" title="Expected dividend rate">0</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_8A6_z6ds2kVjTTy7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The risk-free interest rates are derived from the U.S. Treasury yield curve in effect on the date of grant for instruments with a remaining term similar to the expected term of the options. The expected life of the options is based on the option term. Due to the Company’s limited historical data, the expected volatility is calculated based upon the historical volatility of comparable companies whose share prices are publicly available for a sufficient period of time. The dividend rate is based on the Company never paying or having the intent to pay any cash dividends.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_89A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAndExercisableTableTextBlock_z4r22YnDLuY5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Options outstanding at March 31, 2022 consist of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BE_zti4k4uct5Wc" style="display: none">Schedule of Options Outstanding and Exercisable</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid">Date Issued</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Outstanding</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Exercisable</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zr1V8fEqrLD2" title="Date Issued">March 12, 2020</span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zuHjjOBqgHy" style="width: 16%; text-align: right" title="Number Outstanding">500,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_z5HT363yGNxf" style="width: 16%; text-align: right" title="Number Exercisable">333,333</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zzmGWukJ6mVi" style="width: 15%; text-align: right" title="Exercise Price">0.40</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 17%; text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zT2vD5EbdOV1" title="Expiration Date">March 12, 2025</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_zD9koRCsi0eg" title="Date Issued">June 27, 2020</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_z7O8aWBPiNe8" style="text-align: right" title="Number Outstanding">150,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_z28jsGPhM7sd" style="text-align: right" title="Number Exercisable">100,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_zPnanIiR6ML2" style="text-align: right" title="Exercise Price">0.40</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_z4Pvy5HvTnLi" title="Expiration Date">June 27, 2025</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zG7LNtYLc587" title="Date Issued">January 1, 2021</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zjzMUmYCdms" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Outstanding">450,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zKXFAog5rwr7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Exercisable">150,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zYqWVUiN6fR8" style="padding-bottom: 1.5pt; text-align: right" title="Exercise Price">0.65</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zuUyrJ9LY20b" title="Expiration Date">December 31, 2025</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zi7l7tyz4JHa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Outstanding">1,100,000</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zZkZjVx8ZeZ2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Exercisable">583,333</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td></tr> </table> <p id="xdx_8A7_zufLvc9qUxI4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_897_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zCyxvWwk0d5l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants outstanding at March 31, 2022 consist of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BC_zGDisX6ckBl" style="display: none">Schedule of Warrants Outstanding and Exercisable</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid">Date Issued</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Outstanding</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Exercisable</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zXBIDVSfPfSd" title="Date Issued">March 16, 2021</span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zG8YBTOyikpl" style="width: 16%; text-align: right" title="Number Outstanding">15,900</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zY8BTiG8cB6e" style="width: 16%; text-align: right" title="Number Exercisable">15,900</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zATD6wB6mnsh" style="width: 15%; text-align: right" title="Exercise Price">0.75</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 17%; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zsSyid3PrnEe" title="Expiration Date">March 15, 2023</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_zA0jRPZPvuvj" title="Date Issued">May 7, 2021</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_zoXxf6b848lk" style="text-align: right" title="Number Outstanding">53,704</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_zQMBZZAFQMh3" style="text-align: right" title="Number Exercisable">53,704</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_z7U7dw5JXVoh" style="text-align: right" title="Exercise Price">0.74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_z9IQNwW13yWj" title="Expiration Date">May 6, 2023</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_z2YsHsssPjw4" title="Date Issued">June 17, 2021</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_z7KxT8AgqPH3" style="text-align: right" title="Number Outstanding">12,189</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_z8rGa7AVexG2" style="text-align: right" title="Number Exercisable">12,189</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_zVHSgDU1v5qc" style="text-align: right" title="Exercise Price">0.83</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_zuqzTukBaoD2" title="Expiration Date">June 16, 2023</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_ztrCaOYht49c" title="Date Issued">August 10, 2021</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_zNeCdhUzaIIg" style="text-align: right" title="Number Outstanding">930,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_z0PRZPNybZrk" style="text-align: right" title="Number Exercisable">930,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_zk1L0rnlaBJj" style="text-align: right" title="Exercise Price">1.25</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_zoZaH8wr4AE5" title="Expiration Date">August 9, 2024</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zpxhJT3ztX89" title="Date Issued">February 23, 2022</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zYsIY8LOuQHl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Outstanding">14,854</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zQHKaO2Km076" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Exercisable">14,854</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zVWHuQtLpigd" style="padding-bottom: 1.5pt; text-align: right" title="Exercise Price">0.705</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zIuzcoi0O9Kg" title="Expiration Date">February 22, 2024</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zdlvPACw5SIi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Outstanding">1,026,647</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zP8D4qeuMrOe" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Exercisable">1,026,647</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td></tr> </table> <p id="xdx_8A1_ziiiNY0b1Qg7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> 8920 <p id="xdx_89E_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_zlAuBQuhfrr2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B1_z9vLyJAyUBfg" style="display: none">Schedule of Stock-based Compensation Expenses</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: justify"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220101__20220331_zJDoZQuJaxff" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2022</td><td style="display: none; padding-bottom: 1.5pt"> </td><td style="display: none; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20210101__20210331_zS2ciyQg9v03" style="border-bottom: Black 1.5pt solid; display: none; text-align: center">2021</td><td style="display: none; padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended March 31,</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_407_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zotvqUcmaFnf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: justify">Research and development</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0682">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">21,625</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_z2OGfl69LHH1" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Sales and marketing</td><td> </td> <td style="text-align: left"><span style="-sec-ix-hidden: xdx2ixbrl0685"> </span></td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">29,187</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--AllocatedShareBasedCompensationExpense_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zyjTDESDHh9e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">General and administrative</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,484</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">17,581</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AllocatedShareBasedCompensationExpense_zqyLknur0Lje" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Total expense – shares issued for services</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,484</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">68,393</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> 21625 29187 3484 17581 3484 68393 450000 0.65 P3Y P5Y 27164 1100000 P11M 0.12 <p id="xdx_89C_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_zf7dls4KSRjk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The fair value of all options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_8B1_zodnNorjucOc" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Schedule of Fair Value of Option Grant of Weighted-average Assumptions</span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended <br/> March 31, 2022</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Three Months Ended <br/> March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: center"> </td><td style="width: 16%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20210101__20210331_zMpJLnayXwS3" style="width: 16%; text-align: right" title="Risk-free interest rate">0.21</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life of the options</td><td> </td> <td style="text-align: center"> </td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20210331_ziyuFbYzwoA1" title="Expected life of the options">3.5</span> years</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility of the underlying stock</td><td> </td> <td style="text-align: center"> </td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20210101__20210331_zK9N31VszLR4" style="text-align: right" title="Expected volatility of the underlying stock">76.3</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend rate</td><td> </td> <td style="text-align: center"> </td><td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20210101__20210331_zKQhTujRQ1f3" style="text-align: right" title="Expected dividend rate">0</td><td style="text-align: left">%</td></tr> </table> 0.0021 P3Y6M 0.763 0 <p id="xdx_89A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAndExercisableTableTextBlock_z4r22YnDLuY5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Options outstanding at March 31, 2022 consist of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BE_zti4k4uct5Wc" style="display: none">Schedule of Options Outstanding and Exercisable</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid">Date Issued</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Outstanding</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Exercisable</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zr1V8fEqrLD2" title="Date Issued">March 12, 2020</span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zuHjjOBqgHy" style="width: 16%; text-align: right" title="Number Outstanding">500,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_z5HT363yGNxf" style="width: 16%; text-align: right" title="Number Exercisable">333,333</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zzmGWukJ6mVi" style="width: 15%; text-align: right" title="Exercise Price">0.40</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 17%; text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionOneMember_zT2vD5EbdOV1" title="Expiration Date">March 12, 2025</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_zD9koRCsi0eg" title="Date Issued">June 27, 2020</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_z7O8aWBPiNe8" style="text-align: right" title="Number Outstanding">150,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_z28jsGPhM7sd" style="text-align: right" title="Number Exercisable">100,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_zPnanIiR6ML2" style="text-align: right" title="Exercise Price">0.40</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionTwoMember_z4Pvy5HvTnLi" title="Expiration Date">June 27, 2025</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zG7LNtYLc587" title="Date Issued">January 1, 2021</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zjzMUmYCdms" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Outstanding">450,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zKXFAog5rwr7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Exercisable">150,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zYqWVUiN6fR8" style="padding-bottom: 1.5pt; text-align: right" title="Exercise Price">0.65</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--OptionThreeMember_zuUyrJ9LY20b" title="Expiration Date">December 31, 2025</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zi7l7tyz4JHa" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Outstanding">1,100,000</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--OptionMember_zZkZjVx8ZeZ2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Exercisable">583,333</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: right"> </td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt"> </td></tr> </table> 2020-03-12 500000 333333 0.40 2025-03-12 2020-06-27 150000 100000 0.40 2025-06-27 2021-01-01 450000 150000 0.65 2025-12-31 1100000 583333 <p id="xdx_897_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zCyxvWwk0d5l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants outstanding at March 31, 2022 consist of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> <span id="xdx_8BC_zGDisX6ckBl" style="display: none">Schedule of Warrants Outstanding and Exercisable</span></span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid">Date Issued</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Outstanding</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Number <br/>Exercisable</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: center">Expiration Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zXBIDVSfPfSd" title="Date Issued">March 16, 2021</span></td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zG8YBTOyikpl" style="width: 16%; text-align: right" title="Number Outstanding">15,900</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zY8BTiG8cB6e" style="width: 16%; text-align: right" title="Number Exercisable">15,900</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zATD6wB6mnsh" style="width: 15%; text-align: right" title="Exercise Price">0.75</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 17%; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantOneMember_zsSyid3PrnEe" title="Expiration Date">March 15, 2023</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_90B_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_zA0jRPZPvuvj" title="Date Issued">May 7, 2021</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_zoXxf6b848lk" style="text-align: right" title="Number Outstanding">53,704</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_zQMBZZAFQMh3" style="text-align: right" title="Number Exercisable">53,704</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_z7U7dw5JXVoh" style="text-align: right" title="Exercise Price">0.74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantTwoMember_z9IQNwW13yWj" title="Expiration Date">May 6, 2023</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td><span id="xdx_907_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_z2YsHsssPjw4" title="Date Issued">June 17, 2021</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_z7KxT8AgqPH3" style="text-align: right" title="Number Outstanding">12,189</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_z8rGa7AVexG2" style="text-align: right" title="Number Exercisable">12,189</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_zVHSgDU1v5qc" style="text-align: right" title="Exercise Price">0.83</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantThreeMember_zuqzTukBaoD2" title="Expiration Date">June 16, 2023</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td><span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_ztrCaOYht49c" title="Date Issued">August 10, 2021</span></td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_zNeCdhUzaIIg" style="text-align: right" title="Number Outstanding">930,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_z0PRZPNybZrk" style="text-align: right" title="Number Exercisable">930,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_zk1L0rnlaBJj" style="text-align: right" title="Exercise Price">1.25</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFourMember_zoZaH8wr4AE5" title="Expiration Date">August 9, 2024</span></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt"><span id="xdx_906_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsIssuanceDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zpxhJT3ztX89" title="Date Issued">February 23, 2022</span></td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zYsIY8LOuQHl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Outstanding">14,854</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zQHKaO2Km076" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number Exercisable">14,854</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsOutstandingWeightedAverageExercisePrice_iI_pid_c20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zVWHuQtLpigd" style="padding-bottom: 1.5pt; text-align: right" title="Exercise Price">0.705</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20220101__20220331__us-gaap--AwardTypeAxis__custom--WarrantFiveMember_zIuzcoi0O9Kg" title="Expiration Date">February 22, 2024</span></td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding-bottom: 1.5pt">Total</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zdlvPACw5SIi" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Outstanding">1,026,647</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardWarrantsExercisableNumber_iI_pid_c20220331__us-gaap--AwardTypeAxis__us-gaap--WarrantMember_zP8D4qeuMrOe" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right" title="Number Exercisable">1,026,647</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt"> </td></tr> </table> 2021-03-16 15900 15900 0.75 2023-03-15 2021-05-07 53704 53704 0.74 2023-05-06 2021-06-17 12189 12189 0.83 2023-06-16 2021-08-10 930000 930000 1.25 2024-08-09 2022-02-23 14854 14854 0.705 2024-02-22 1026647 1026647 <p id="xdx_809_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zCgT8M1bgnkh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 10. <span id="xdx_82B_zr4k693wAr8i">Related Party Transactions</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Convertible notes payable, related party: </i>See Note 6.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p id="xdx_800_eus-gaap--IncomeTaxDisclosureTextBlock_z84LZcHiOSk3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 11. <span id="xdx_82A_z6bUQe7lqSHi">Income Taxes</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three month period ended March 31, 2022 and the year ended December 31, 2021, the Company did not record a tax provision as the Company did not earn any taxable income in either period and maintains a full valuation allowance against its net deferred tax assets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p id="xdx_803_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zOre81LzdLf6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 12. <span id="xdx_822_zlzcek9vy4C7">Commitments and Contingencies</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 9, 2021, the Company entered into a Receivables Purchase and Security Agreement (“Factoring Agreement”) with a Factoring Company. The Factoring Agreement has an initial term of <span id="xdx_90A_ecustom--AgreementTermPeriod_dc_c20210209__20210209__us-gaap--TypeOfArrangementAxis__custom--FactoringAgreementMember_z9XCMmvsiK46" title="Agreement term">one year </span></span>and, in accordance with its terms, has been renewed for an additional year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under the terms of the agreement, designated receivables are sold for periodic advances of up to $<span id="xdx_908_ecustom--AdvancesOnSaleOnReceivables_iI_pp0p0_c20210209__us-gaap--TypeOfArrangementAxis__custom--FactoringAgreementMember_z3RjJ0wRsRd6" title="Advances on sale on receivables">150,000</span>. The Factoring Company retains a reserve of <span id="xdx_909_ecustom--ReserveOfPurchasedReceivables_iI_pid_dp_uPure_c20210209__us-gaap--TypeOfArrangementAxis__custom--FactoringAgreementMember_zbg7aiOkK6G1" title="Reserve of purchased receivables, percentage">10</span>% of purchased receivables with the balance available to the Company. Factoring fees begin at <span id="xdx_907_ecustom--FactoringFees_iI_pid_dp_uPure_c20210209__us-gaap--TypeOfArrangementAxis__custom--FactoringAgreementMember_zNarWZYAHJ93" title="Factoring fees, percentage">1.8</span>% for the first 30 days a purchased invoice is outstanding and increase the longer an invoice remains outstanding. After 90 days, the Factoring Company has the right to assign the invoice back to the Company. The Factoring Agreement includes minimum average monthly volumes.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of March 31, 2022, the balance of outstanding invoices that the Factoring Company may assign back to the Company if not collected within 90 days is included in the Company’s Accounts Receivable balance with the amounts received, net of reserves held, included with other current liabilities on the condensed consolidated balance sheets. The net amount included in other current liabilities is $<span id="xdx_90B_eus-gaap--OtherLiabilitiesCurrent_iI_c20220331__us-gaap--TypeOfArrangementAxis__custom--FactoringAgreementMember_ziDb1TySsZja" title="Other current liabilities">10,334</span> and $<span id="xdx_909_eus-gaap--OtherLiabilitiesCurrent_iI_c20211231__us-gaap--TypeOfArrangementAxis__custom--FactoringAgreementMember_zgwLFhSyWeA" title="Other current liabilities">25,420</span> as of March 31, 2022 and December 31, 2021, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There are no pending or threatened legal proceedings as of March 31, 2022. 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